Managing divorce and bankruptcy together

Financial problems can often be contributors to marital strife. Many a couple in Tennessee has found themselves facing the end of a marriage in part due to excessive debt or different financial styles. Some people may choose to file for Chapter 13 bankruptcy in an effort to save their troubled marriages. When this decision ends up not working and a divorce is inevitable, it can leave spouses wondering how their bankruptcy may be impacted.

As explained by Bankrate, there are several factors that play into the options for consumers in this situation. For some people, they may have the ability to convert their existing Chapter 13 bankruptcy to a Chapter 7 bankruptcy. Also important to evaluate is whether the original bankruptcy was filed jointly or only by one of the spouses.

For couples who did not initiate bankruptcy proceedings before deciding to get divorced, a different set of choices may need to be made. Certainly, they will need to look at which type of bankruptcy plan is best for them according to My Horizon Today. Their income, debt amount and debt type are just some of the factors that will contribute to this decision. 

Another important consideration at this point is how well the spouses are able to work together to resolve their financial problems. If they are completely unable to communicate, a Chapter 13 bankruptcy may not be wise. However, for spouses who can collaborate, this type of plan may be viable for them even though they could remain financially connected through the term of the plan.

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