Divorce can be a very difficult life transition; but going through bankruptcy after a divorce has its on set of challenges.
Below are three tips for surviving bankruptcy after a divorce:
- Work with a good bankruptcy attorney who has experience working on bankruptcy cases involving divorce. Be sure to share all the pertinent information about your divorce that could impact your bankruptcy case.
- Make sure that you have a plan for how you will financially manage on one salary after your bankruptcy. If you were a stay-at-home mom before your bankruptcy and divorce, work with a financial professional to find out what steps you need to take to maintain your lifestyle. One of the biggest pitfalls for stay-at-home moms who experience a divorce, a bankruptcy or both is that they are often unable to find employment that will allow them to sustain the lifestyle they had when they were married. If you want to successfully navigate your finances after bankruptcy, you must consider the possibility of a drastically reduced salary and the possibility that you may need to change your lifestyle.
- Make sure that you get everyone onboard with any financial changes you plan to make after bankruptcy. One of the mistakes that many debtors make after bankruptcy, especially if a divorce is involved, is trying to shelter their kids from the reality that they will need to make changes to their spending habits. If you’re going from two salaries to one and exiting a bankruptcy, you won’t be able to move forward without changes that will impact the entire household.