Bankruptcy Due To Divorce Or Medical Problems Can Be Frustrating

Just like love and marriage are said to go together, bankruptcy and divorce are just as intimately tied. The dissolution of marriage brings with it a whole host of ramifications, some of which are emotional, but many of which are also fiscal. Even with a great divorce lawyer you may find that you are still on the hook for a plethora of jointly incurred debts that will not go away even as the magistrate signs the decree of divorce.

At issue is the fact that the law seeks to hold harmless the companies that have offered you and your spouse credit in good faith. They are not to be punished for your marital bliss’ turning into a living nightmare and thus a divorce filing may be useful in divvying up the assets and liabilities between the parties, but even a liability that was taken on by one side is still executable on both parties.

Thus, the only way to avoid rude awakenings is as follows:

To avoid bankruptcy, divorce bound couples should take the other person’s name off any credit accounts.
Joint accounts need to be closed immediately.
Loans, such as car notes or home loans, should be refinanced in only one person’s name.

If bankruptcy seems unavoidable in the aftermath of a divorce, find out what the legal ramifications are if you file for the bankruptcy but not your ex spouse. Ensure that there is no way she or he can come after you when the creditors decide to go after her or him solely.

A medical bankruptcy is perhaps one of the most frustrating legal proceedings a consumer will have to face. For reasons beyond their control, a medical problem required costly treatment, which then led to mounting medical bills. Before long, the various requests for payment are too numerous to be met head on by the consumer and she or he will most likely begin to fall behind in other areas of bill paying as well.

Even if the consumer does not fall behind on their secured and unsecured debts, the fact that medical bills are routinely turned over to collection agencies will before long lead to a downward spiral that affects the consumer’s ability to obtain credit, maintain their home and transportation needs, and eventually lead to the individual’s filing for bankruptcy.

While there is no such thing as a medical bankruptcy per se, it is a time commonly used by debtors to explain what has led to their financial downfall. In many cases those facing medical bankruptcy understand that their failure to plan for rising healthcare costs has led to their fiscal demise, yet at the same time, the necessity of keeping up with regularly scheduled payments and living expenses makes it next to impossible for the average American to set aside enough money to plan for these eventualities.

Even as there is precious little that may be done to affect change, there are movements to have healthcare costs streamlined, to make it easier for consumers to find small personal loans that permit for manageable payment options, and also movements within the physicians’ offices to accept payment plans after services have been rendered.

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