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.
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