In debt after divorce? Bankruptcy could help.

Posted by Lauren S. CohenJul 15, 20200 Comments

When your spouse decided to get a divorce, you were shocked. You're both in your 60's, and you have significant debt to your name. You never expected to be dealing with such a large share of debt this late in life, especially since you'd both planned on how to pay it off before retirement.

Unfortunately, after your divorce, you were left with significant debt. That's bad enough, but being unable to pay for so long has meant that those debts have gone into collections in your name. You can't get your phone to stop ringing. You know that you're behind on bills. You know that they're owed, but you can't do anything about it.

Harassing calls from creditors can be stopped if you decide to pursue bankruptcy. While it may have been beneficial to go through bankruptcy prior to divorce, you can still pursue it now that you're divorced and on your own. With a modest income and few assets to your name, you may be able to qualify for Chapter 7 bankruptcy.

This form of bankruptcy may ask you to liquidate some of your assets, though there are exemptions. In the end, this could be a good way to eliminate the debts you were left with and to get yourself on better financial footing as you get closer to retirement.

It's worth discussing bankruptcy with your attorney if you're struggling to make ends meet. Our website has more on divorcing and how bankruptcy can help if you've been left with debts that you can't handle on your own. There is support available to help you through this difficult time.