A number of people struggling financially take steps toward improving their lives at the start of the new year. This can involve divorce, bankruptcy, or both. While no one looks forward to bankruptcy or divorce, the result of these difficult processes can be extremely beneficial in the long-term.
Most people choose to wait until after the holidays to file for bankruptcy and divorce. In January, there is typically an influx of divorce cases. January has become known as “divorce month” for this reason.
When Bankruptcy and Divorce are Appropriate
When is bankruptcy right after divorce? Three common reasons are below:
- Financial struggles are a reason for the divorce. Financial arguments are a leading cause of divorce. Financial goals and spending habits are important. Major differences can lead to irreconcilable arguments, as well as overwhelming debt. Filing for bankruptcy after divorce can be a way out.