Debts After Divorce

Q: As a result of my divorce, I'm left with more debt than I can handle. Is there an alternative to bankruptcy?

One of the often-unintended consequences of divorce is the burdensome debt that was formerly handled by two, now to be handled by one. Creditors hold both spouses liable for debt incurred during the marriage. Any agreement between the spouses regarding who is responsible to pay the debt need not be recognized by the creditor.

To avoid bankruptcy, one must become acquainted with bankruptcy law. You must determine your income/expenses and your assets/liabilities. If you have the ability to fund settlements with the creditors, you should avoid bankruptcy. Other than just paying your debts in full, one option to avoid bankruptcy is to compare debt consolidation with debt negotiation. Debt consolidation is a payment plan in favor of your creditors to pay the debts in full over time with interest. Debt negotiation, however, provides for discounted cash settlements, which are customized to your ability to fund.

Most people are unaware of the possibility of negotiating with creditors to reduce the amount of money that they owe them. I recommend that you seek out a professional - one who is not emotionally involved - who has experience handling creditors to give you a fair assessment of what the outcome of this strategy might be for you. In addition, arrangements can be made to minimize the negativity on your credit report.

CuraDebt.com is a center for helping consumers nationwide become debt free without filing bankruptcy. The agency provides a FREE Debt Freedom plan consultation, FREE Debt Freedom Teleconferences, the FREE newsletter, Secret Money Tips, and other valuable information via phone at 1-877-850-DEBT(3328) or on the web site: curadebt.com/a/1242

Do you have a time or money saving idea that wasn't included in this article? Please send it to tips @stretcher.com. We get the best ideas from our readers!

If you liked this article sign up for our free eNewsletter Surviving Tough Times Do it today and we'll give you our ebook featuring over 200 ways to save on groceries (a $19.95 value).

Follow The Dollar Stretcher on Twitter.

I Would like to:

• Read other articles on this topic
  
• See what else is in this issue
  
• Subscribe to "The Dollar Stretcher" free weekly email newsletter
  
• visit the Problem Solving Center
  
• visit the Reference Library
  
• browse the 'author' index
  
• search 'by date' index
  
• check out Past Issues of Newsletter
  
• go see 'What's New'
  
• "Can You Help This Reader?"
  
• drop by 'Tips, Quips & Quotes'
  
• send email to the Editor of "The Dollar Stretcher"