Surviving divorce is a challenge in itself, but did you know that divorce is also one of the leading causes of bankruptcy today? As a divorcing party, if you are not careful, a divorce can burn through all of your assets and leave you with nothing but debt.
This is especially true during today’s troubling economic times that have couples divorcing amid foreclosures and out of control credit card debt. If not handled properly, a divorce can equal bankruptcy in just a few short months. Without that second income from a spouse, or the need to pay child or spousal support, money priorities quickly shift making it harder if not impossible to pay the bills on time or at all.
Take for example a divorcing dad who, prior to his divorce, brought home more than a million dollars a year. Just a few short years following his costly divorce, this divorcing dad was forced to file for bankruptcy.
There is help during divorce and after that assists individuals in paying off their debt without running to the courts for a bankruptcy when all else fails. The divorcing dad could have utilized a debt guide designed to teach its readers how to get out of debt fast without having to file for bankruptcy.
Think you are immune to the bankruptcy syndrome? Don’t be so sure. According to Joseph Pomykala’s article “Wrestling with Bankruptcy,” the odds are stacked against you:
* In 1998, 1 of every 68 families in the U.S. filed for bankruptcy. That figure has grown consistently over the years.
* In fact, bankruptcy claims have increased in number each year in the United States and now are more than twice the number of claims filed during the entire Great Depression.
* The average family is responsible for $58,500 in debt.
* Credit card debt and other unsecured debt have increased on average by 14 percent each year since 1978.
* Approximately 9 percent of bankruptcy filers have claimed bankruptcy at least one time before.
Of course the most relevant statistic of all states that 40 percent of all bankruptcies are a direct result of divorce, unemployment and medical crisis. The truth of the matter is divorce has a way of changing an individual’s life in ways he or she may not have originally imagined. By utilizing a consumer debt guide, you can ward off any chance of bankruptcy by ensuring your debts are handled appropriately.
By Ron Lasorsa