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An often hopeful avenue when divorce yields stark financial challenges

On Behalf of | Jan 26, 2021 | Bankruptcy

Many economic challenges in life are resolvable without outside help, even if hard to deal with and work through. Central Florida residents and other individuals and couples spanning the state are often forced to cope with financial difficulties that seriously test at some point. It is fortunately the case in many of those instances that we somehow persevere and overcome the difficulties.

That often means something like this: Challenged debtors somehow manage to keep up with apartment payment duties or mortgage premiums that come due. They continue to make car payments. Burdensome medical bills don’t quite become overwhelming and are gradually paid off.

Legions of readers can likely identify with those above scenarios. Times are currently tough. The nation is striving to claw back from unusual times marked by massive job losses, depleted incomes and other strains. People facing financial hurdles do their best to cope and push forward toward a hopeful future.

Candidly, though, it is not always the case that persons struggling with onerous debt levels can continue to stay above water financially. Some of those individuals and families – through no fault of their own – do need to look for assistance that can help them during notably tough times.

Fortunately, meaningful help is available for severely stressed debtors, and legions of people routinely take advantage of it to restore economic traction.

Chapter 7 bankruptcy’s many advantages merit a close look

A bankruptcy filing does not signify failure or lost hope. Indeed, invoking bankruptcy protections and securing a fresh financial start is a right going back hundreds of years that is explicitly recognized in the U.S. Constitution.

Chapter 7 often invites especially close scrutiny from divorcing couples, who are understandably saddled with a number of money concerns. One Florida legal source on family law challenges and linked bankruptcy protection duly notes that much can change in a person’s life “after a tough marriage dissolution.” Financial strains tied to divorce can be severe, even “crippling.”

For many individuals, a Chapter 7 bankruptcy can respond purposely and effectively to outsized financial woes. Many prospective filers learning about the process are pleasantry surprised to learn about the many and impressive benefits that attach to Chapter 7 bankruptcy. Those centrally include these:

  • Immediate stop to harassing creditor contacts
  • Automatic stay on a foreclosure and many types of debt obligations
  • Release from personal liability for most discharged debt
  • No amount limit stipulated on dischargeable debt
  • No debt repayment plan
  • Ability to keep a considerable amount of property
  • Ability to clear much unsecured debt (e.g., medical and credit card exactions)

Bankruptcy can be an extremely viable debt-relief strategy to pursue for a strapped debtor, although it is not for everyone. Moreover, it is a complex process with a number of detailed rules and guidelines. Questions or concerns can be directed to a proven and empathetic debt-relief legal team.