Divorce is one of life’s most emotionally and financially difficult events, and for many people in Joplin, Missouri, it also leaves behind a mess of unpaid bills, legal fees, and credit issues. If you’re struggling to stay afloat after a divorce, you’re not alone, and bankruptcy may be an option worth considering.
Why Bankruptcy Often Follows Divorce
Divorce can dramatically change your financial situation. Suddenly, you’re relying on one income instead of two, while still juggling rent or mortgage payments, utilities, child support or alimony, and leftover joint debt like credit cards or medical bills. In many cases, bankruptcy becomes a necessary step toward a fresh start.
Timing Matters: Before or After Divorce?
One of the most common questions our firm receives is whether it’s better to file for divorce before or after bankruptcy is finalized. The answer depends on your specific situation:
- Filing before divorce might make sense if you and your ex can still work together financially. A joint bankruptcy could eliminate shared debts and simplify the divorce process.
- Filing after divorce is often chosen when communication breaks down or one spouse wants to file individually. However, you’ll then be responsible for your own legal fees and must deal with debts assigned to you in the divorce decree.
In Missouri, understanding the division of property and debts during a divorce is crucial. Even if your ex is assigned a debt in the divorce decree, the creditor can pursue you if your name remains on the account. Bankruptcy can offer essential protection in such cases.
What Types of Bankruptcy Are Available?
In Joplin and the rest of Missouri, most individuals file under either Chapter 7 or Chapter 13 bankruptcy:
- Chapter 7 bankruptcy: This option is faster (usually 4-6 months) and eliminates most unsecured debts like medical bills, credit card balances, and personal loans. However, you need to satisfy income qualifications according to the “means test.”
- Chapter 13 bankruptcy: This is a repayment plan that lasts 3 to 5 years. It can be useful if you’re behind on your mortgage or car loan, or if you don’t qualify for Chapter 7 due to your income.
After a divorce, many people qualify for Chapter 7 simply because their income has dropped and expenses have increased.
What About Child Support and Alimony?
It’s important to understand that child support and spousal support (alimony) cannot be discharged in bankruptcy. These obligations will remain in place, and failing to keep up with them can lead to serious legal consequences.
However, filing for bankruptcy may still help you by eliminating other debts and freeing up your budget to meet your support obligations more easily.
Protecting Your Property in Missouri
Missouri has its own set of bankruptcy exemptions, which determine what assets you can keep. In most cases, you can protect your home, car, clothing, household goods, and retirement accounts—especially if you’re filing Chapter 7. A local bankruptcy attorney can help you understand what’s protected under Missouri law and how to avoid losing anything important.
Take Control of Your Financial Future
Divorce doesn’t have to be the end of your financial story. Bankruptcy is not a failure—it’s a legal tool designed to give people a second chance. If you’re overwhelmed by debt in the aftermath of a divorce, you owe it to yourself to explore your options.
Talk to Our Attorneys Today
At Scott Mitchell Law, we know that dealing with divorce and debt at the same time can feel overwhelming. We’re here to listen, guide you through your options, and help you take the next step toward financial peace. Let us help you get the fresh start you deserve.
Contact us today for a confidential consultation.