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by sitecore\jhorton on July 05, 2013

Couple argues about how to get out of debt

Ask the Experts: How do I get out of debt after divorce?

I'm in the middle of a divorce and I can't seem to get out of the pile of debt that was accumulated in our marriage. It seems I was "awarded" the bulk of the credit card debt, which is around $40k. I pay about $1k in child support. I currently make $85k plus bonuses. But, I can't seem to make it to the next paycheck without checks bouncing. I'm 34 yrs. old and I'm considering filing Chapter 13. Do you have any suggestions? - At Wit's End

Dear At Wit’s End,

Unfortunately, debt and divorce, more often than not, go hand-in-hand. In fact, divorce is one of the top reasons consumers seek MMI’s help to get out of debt.

Before you make a decision regarding the path to getting out of debt, I recommend researching your options by meeting with a trained credit counselor at a nonprofit organization like Money Management International. Because we have counselors who handle everything from debt management programs to bankruptcy counseling and education, they would be an excellent resource.

During your counseling session, your counselor will review your overall financial situation, discuss possible solutions and make recommendations for getting out of debt. If after that session you and your counselor determine bankruptcy is your best option, you should schedule a free consultation with a bankruptcy attorney.

But just remember, bankruptcy attorneys are (obviously) for-profit, so it’s always best to start exploring your options for getting out of debt with an organization that is knowledgeable, but also nonprofit.

Good luck!

Ask The Experts

Comment(s)

Margrett Moussa says:
July 15, 2013

Excellent



Peter says:
July 25, 2013

Great article. Totally agree that the only winners when you get lawyers involved are the lawyers. I hear many stories where the funds being fought over are lost to legal fees by as much as 50%. If you can be reasonable and compromise, both parties can get a good outcome using a moderator.



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