Divorce can cause financial strain. Separated spouses have to choose between two income streams and one household. This is in addition to the additional expenses resulting from the divorce (legal fees, alimony, etc.). What are some ways to reduce the burden of divorce debt?
Step 1: Create A Plan
Yes, it is important to have a plan before you can change your budget. You are right to think that although making a few adjustments to your budget is simple and straightforward, it can take time and effort to create a long-term plan. It is the most important thing that you can do right away. You might wonder why? If you are in greater debt overwhelm, it is important to consider your bankruptcy options before making any changes to your budget. Bankruptcy is often the fastest and most cost-effective way to get rid of large amounts of debt. However, your eligibility for other options may be reduced if your budget improves. It’s backward. But we can still use the system we have.
It is important to get your information together during a separation, as some obligations related to the divorce may or not be dischargeable. This can also depend on the type of bankruptcy that you file.
When is it the right time to make a plan? Each situation is unique, but it’s helpful to have a plan even early in separation. Many couples have been able to get rid of their debts before the divorce. This allows them to start a new life with less confusion.
Step 2: Have A Hard Look At Your New Budget
Although this topic may seem obvious, I want to challenge you to think outside the box. To get your budget in line, you may need to make significant lifestyle changes. What can you do to reduce the cost of your living environment? Are you able to take in roommates? Or can you live more affordably? Is it possible to trade in your vehicle and get a lower payment? Bonus points are available if you can cash out. Are you looking for a side-hustle (also called a “moonlight” to my millennial readers)?
Step 3: Implementing
It doesn’t matter if your plan for getting rid of Divorce Debt is a simple one-time payment plan or working with someone to consolidate debt, bankruptcy, and other options, it is time to make it happen. There are many options in this world and there is no magic bullet. They will all have ups as well. Keep your cool and persevere.
Step 4: Restore Your Debt Health
It can take months or even years to clear your divorce debt from a previous marriage. It is now time to take in what you have just learned. Although debt can be useful, it is important to treat it with respect. A healthy credit score can be achieved by having some debt. You can improve your credit score by reducing your debt.
Have questions about your divorce debt? Speak to the lawyers at Bruner Wright P.A. for a consultation, we are happy to assist you with your plan.
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Contact us today to schedule a consultation to find out if bankruptcy is the best option. A member of our team will review your case to help you make the right choice. We are focused on consumer bankruptcy. We want you to achieve financial stability.