Personal Bankruptcy

The bad news is the good news. Personal Bankruptcy means that you will (hopefully) wipe your financial slate clean. There are some pros and cons of this action:

Pros of Filing for Bankruptcy

  • Your credit will begin from the bottom up.

  • Your debt will be erased if you filed for chapter 7, and lessened if you filed chapter 13.

  • You will be required to take a credit course to give you some tips on budgeting, and that may be a good thing now.

Careone Credit has a great reputation in helping it's customers through debt or bankruptcy. Unlike most companies online, they are highly rated with the BBB, and offer a money back guarantee that you can count on.

Cons of Filing
  • Your credit will be affected for 7-10 years.

  • Your chances of securing a loan, mortgage, or credit card are low for a period of time immediately following your filing date. This is a real pain when you are divorcing and may not be able to rely on someone else.

  • I highly suggest getting some information about your credit situation by using CareoneCredit. This is one company that is working to give consumers a break, working on a sliding scale, and empowering you to understand the options. I have worked closely with this group and am very impressed.

    You can learn a lot by reading the information on the CareOne website.

  • You will have to begin using cash, debit cards, and being more frugal with your money. (maybe this should be a PRO)?

Legalzoom's Bankruptcy fees are low compared to hiring an attorney, and the Legalzoom website is really easy to maneuver:

For some good information about bankruptcy and debt consolidation options, read articles at

Read the second article in the Real-Divorce Bankruptcy Series.


Need a Divorce Lawyer?

You should definitely consult a professional before you decide on bankruptcy. You may wish to find an attorney who will help you with both the divorce and the bankruptcy, if that is your desire.

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