If you are in the unhappy position of dealing with both financial woes and relationship troubles, you may be led to contemplate both a bankruptcy and divorce in the near future. If both of these major legal moves are in your plans, you might want to consider the order of these filings and how it could affect your finances. Read on to learn more.
Debts Before Divorce
When couples divorce, the debts must be divided or assigned, leading to some potentially contentious battles over who owes what and who is responsible.
If you owe federal income taxes, you can eliminate the arrearages, as well as the interest and penalties, by filing chapter 7 bankruptcy. As long as the debt meets the minimum requirements, it will be wiped out when you receive your discharge from the court. Unfortunately, any liens the federal government placed on your property prior to your filing bankruptcy will remain. However, there are three things you can do that may help you get rid of the lien on your property.
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.
Are you retired? Are you tapping your wallet dry every month trying to pay the bills? Are you growing concerned that you won't make it through your golden years without going completely broke? If so, Chapter 13 bankruptcy may be the key to turning your retirement around.
Cheers To Your Health
Stress creates real physiological changes in your body. When you're lying in bed at night crunching numbers and worrying about payment due dates, your body begins to release adrenaline and cortisol.
Having a bankruptcy on your credit report can make it hard to get loans or even rent apartments, but a bankruptcy doesn't necessarily preclude you from either of these activities. If you are thinking about declaring bankruptcy and wondering how it may affect your ability to rent a new place, here are five surprising things you may want to know:
1. Many people buy homes after bankruptcy so renting is definitely possible