Debt trouble makes it hard for a person to live their life normally. When a couple has more bills than they have money, every decision they make must be carefully thought out, so they don’t incur more debt. Since missing a payment can lead to additional costs they can’t afford, families in this situation often spend an unusual amount of time stressed about money. Over time, this can negatively affect their relationships. In fact, financial stress is one of the top reasons people get divorced.
When one spouse likes to shop and the other is more frugal, these differences become exacerbated when they get into debt they can’t easily pay. Instead of heading to a divorce lawyer, the first step should always be to contact a bankruptcy attorney in Hamilton, OH. A bankruptcy lawyer might be able to tell them about options they didn’t even know existed so they can resolve their debt and ideally, work on their marriage as well.
There are two main types of bankruptcy for individuals and couples. The first, chapter 7, may erase all or most consumer debts, including credit cards and personal loans. It can also help a couple get out of a mortgage or car loan they can’t afford. The other option is chapter 13, which won’t immediately discharge debts, but it will make them easier to pay. Chapter 13 bankruptcy is debt reorganization and it allows couples to pay a portion of their monthly salary toward their debts. The family pays the bankruptcy trustee, and the trustee divides the payment to pay creditors each month.
Only a bankruptcy attorney in Hamilton, OH, might help a couple decide if bankruptcy is right for them and, if so, which type of debt relief is ideal for their personal situation. Like assets, debts are divided equitably in a divorce. Before a couple decides to end their marriage because of the financial stress, they should schedule an appointment with an attorney to discuss their debt and determine if there is a way to eliminate or reduce the amount they owe so they can focus on moving forward with their lives.