Chapter 7 Bankruptcy And Adoption

30 March 2015
 Categories: , Articles

Many adults looking to adopt a child are worried about their application. While the adoption application process is extremely thorough and can be very demanding on applicants, the process is designed to ensure children are only given to homes that can support them. As such, many applicants are worried about the effect that previous (or current) bankrupt status can have on their application.

Understanding the Effect of Bankruptcy

Filing for bankruptcy can bring a lot of stress and anxiety; however, it isn't the catastrophe it once was. In previous years, bankruptcy was a bottomless pit that many people found it difficult to climb out of. Financial and personal reputations were ruined, and the entire process left a permanent scar on people's lives.

Today however, filing for bankruptcy doesn't carry the stigma it once did. Whilst it should be avoided at all costs, the legal system across the country doesn't punish people for getting themselves into a bad situation. Rather, Chapter 7 bankruptcy frees you of a large proportion of your bad debts, easing the pressure on you and allowing you to start over with a clean slate. 

As such, an application for bankruptcy on your financial history record won't ruin your chances of adopting a child. The effect of bankruptcy on adoption application varies between individual cases, so it's important to understand the details of your financial situation when you submit your application.

Bankruptcy in Your Past

The main factor in determining the effect of bankruptcy on your adoption application is how long ago you were declared bankrupt. Getting yourself into a troublesome situation many years ago will not reflect badly on your adoption form, so long as you have made significant process since that time. Adoption agencies are looking for parents who are responsible, and who can teach children how to become responsible adults. While your bankruptcy won't be looked upon favourably, the ability to turn your life around from a troublesome time shows strength of character.

Your current financial situation matters much more than your financial history when it comes to adoption applications. If you can show evidence that you are managing your current debts and have been "in the black" for a lengthy period of time, you should have nothing to worry about when making your application.

Applying for Adoption While Bankrupt

If you are currently applying for bankruptcy or have been declared bankrupt, this will have an effect on your application. As mentioned, adoption agencies are looking for responsible adults who have the finances to support a child. Whether your bankruptcy was due to unfortunate conditions (such as loss of a job) or otherwise, adoption agencies won't be able to approve your application until you have a track record of managing your debts.

Therefore, you should wait until you are clear from bankruptcy before submitting your application. Not only will your application be declined if you are currently insolvent, but the agency may look upon your application as irresponsible which will make future applications more difficult. Additionally, waiting until you have demonstrated a track record of meeting your financial obligations on time will show agencies that you have made a change in your life and that you are able to successfully manage a budget. 

Don't Try to Hide Your Past

Adoption agencies place strong emphasis on the character of potential parents, and as such any misinformation you give them will be heavily frowned upon. It's understandable that you may be embarrassed about your previous bankruptcy; however, it's much better to admit the truth and explain how you are managing the situation than trying to lie your way out.

If you are planning to apply for adoption, it's imperative that you fully understand your situation. While the above guidance will help, you should aim to speak to a qualified bankruptcy attorney from a site like about your financial situation and the effect it will have on your adoption application.