Divorce ranks among the most emotionally difficult experiences an individual can endure. Regrettably, the effects frequently reach well beyond the emotional strain. For numerous Illinois residents, divorce also results in enduring financial pressure that can hinder progress with assurance.

From child support and maintenance duties to ongoing joint debts and new living costs, the financial consequences of divorce can seem daunting. Knowing your legal alternatives is a crucial step towards restoring stability and safeguarding your future.

The Financial Reality of Life After Divorce:

When a marriage ends, the joint financial framework that previously sustained a home also comes to an end. Numerous recently divorced people encounter:

• Decreased disposable income because of child support or spousal support payments.
• Challenges in obtaining assistance when a former partner neglects court-mandated responsibilities
• Unpaid legal expenses, comprising lawyer fees and costs for child representation
• Additional costs, like childcare, travel, or sustaining a different residence
• Liability for shared debts, even if a divorce ruling designated those debts to an ex-spouse.

In Illinois, divorce courts are able to allocate marital debts among spouses, but this allocation does not alter the original agreement terms you have with a creditor. If you are named on the account, the creditor may still seek payment from you, even if your ex was required to pay it.

When Divorce Leaves You Financially Overextended
If your finances are in turmoil after a divorce, considering bankruptcy might be a sensible and efficient solution. Although declaring bankruptcy may seem daunting, many individuals are surprised to find that the procedure is frequently much less stressful and takes less time than divorce.

• Residents of Illinois frequently examine two types of consumer bankruptcy:
• Chapter 7 bankruptcy allows eligible individuals to swiftly eliminate numerous unsecured debts.
• Chapter 13 bankruptcy includes a formal repayment strategy and can assist in safeguarding assets while handling debt gradually.

The appropriate choice relies on your earnings, possessions, and the kinds of debt you hold. A thorough examination of your financial situation is crucial prior to making any choices.

What If Your Ex-Spouse Doesn’t Pay a Shared Debt?
This is a frequent and irritating problem many encounter following divorce. Even if a judge directed your ex-partner to assume responsibility for a credit card, loan, or medical expense, creditors are not obligated to follow that ruling. They might continue to reach out, notify you of unpaid bills, or initiate collection actions.

You may return to divorce court and ask for your ex to be found in contempt, but that procedure does not halt creditor actions. Moreover, if the court finds that your ex-spouse cannot pay, the options for enforcement might be restricted.

In cases like these, bankruptcy may offer relief from collection actions and a more defined way ahead.

Using Bankruptcy as a Tool for a New Beginning

Bankruptcy isn’t a defeat; it is a legal mechanism intended to provide individuals with relief from insurmountable debt and a chance for a new beginning. For individuals reconstructing their lives post-divorce, it can provide space, security, and an opportunity to concentrate on future steps.

A knowledgeable bankruptcy lawyer can clarify how filing might impact your assets, credit, and future financial objectives, while assisting you in understanding what to anticipate at each step of the procedure.

Learn More About Divorce and Bankruptcy in Illinois
If the allocation of debt in your divorce has turned out to be more challenging than anticipated, it might be wise to look into your debt relief alternatives. Illinois bankruptcy lawyer Brian G. Hiatt assists individuals dealing with the financial consequences of divorce, guiding them in assessing if bankruptcy could offer significant relief.

His company, based in Bourbonnais, provides complimentary consultations and adaptable scheduling, featuring evening and weekend availability. Consulting an experienced lawyer can assist you in making educated choices regarding your financial future.

The law firm of Brian G. Hiatt operates as a debt relief agency. It assists individuals in applying for bankruptcy protection under the Bankruptcy Code.