Hello, just went through a highly contested divorce that left me with roughly $30k (give or take) in credit card debt and an additional $25k I had to take out of my 403b. I make decent money but thanks to the divorce I am living paycheck to paycheck with the payments (barely). I've tried to find a loan consolidation option with low interest rates but have been unsuccessful. Do I have any options?
Bankruptcy may give you a fresh start and is a frequent fresh start for those just going through a divorce. I know for a fact there are many wonderful consumer bankruptcy attorneys in Columbus who offer free consultations. You can find one on AVVO.
Have your divorce papers on hand, your attorney will need to look at them to make sure you are eligible for relief under the Chapter best suited for your need to get this all behind you. Taking on more debt is probably not the best option.
I am not your attorney unless you and I have signed a retainer agreement. What I am saying is not legal advice. Do not act on this information without engaging my services, this is for consideration only.
I agree with my colleague, Mr. Brewer. It would be beneficial for you to contact and consult with a bankruptcy attorney here in the Columbus, Ohio area and it sounds like a Chapter 7 Bankruptcy may be the solution to your current problems.
Few people are able to borrow their way out of debt. If you were ordered to pay debt that your ex made, or to hold her harmless from paying certain debts, Chapter 13 bankruptcy can let you eliminate these obligations that would be ineligible to discharge in a standard Chapter 7. This makes obtaining the best representation you can crucial. Hope this perspective helps!
Bankruptcy might be an option, but if the divorce decree says you have to cover certain debts for your ex, then bankruptcy does not just make the obligation go away (it becomes an obligation to her instead of the creditor). Usually, though, if it's going to take more than 5 years to pay off this debt, you need to talk to someone about bankruptcy.
The dialogue on this website does not constitute legal advice nor does it form any sort of attorney-client relationship.
Bankruptcy is probably the best option. But you might try and find a consumer credit counseling agency that is non profit and can sometimes get your interest rates reduced. Avoid loan consolidation companies as they cause more problems than they fix and can be costly.
Many valid opinions have already been presented, however, were these joint debts that you must pay per the separation agreement? If yes, these debts might not be dischargeable in bankruptcy because it would be a property settlement per a divorce decree and sec 523, exceptions to discharge, may apply. Again, consult a bankruptcy attorney in your area.
This answer is general and is not intended to create an attorney client relationhsip and is for informational purposes only.
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