Top 15 Lies About Bankruptcy. Lie #12: Bankruptcy Leads to Divorce

Lie #12: Bankruptcy  Leads to Divorce.

Truth-o-Meter: 

While this is possible, in fact, usually, it works just the opposite.

For people with financial issues that are causing problems in their relationship, filing bankruptcy is not the problem. The problem is not being able to pay your bills. The problem is being called at all hours by debt collectors. The problem is being afraid to go to the mailbox because of the dunning letters. All good, honest, hard-working people feel a strong desire to pay their bills, and not being able to do so causes them tremendous stress. Unless you do something to relieve this stress, it can build to the breaking point….and in some cases, the breaking point of your marriage.

Bankruptcy is designed to get you out from under the heavy weight of debt and collectors, to protect your property and to lower your stress level. If your experience is like that of other couples, you will find that filing bankruptcy and lowering the stress level can be a crucial first step in bringing the love and caring back into your relationship….which, in turn, gives your marriage a fighting chance.

My colleague, Rachel Lynn Foley, wrote an excellent blog talking about the stresses that debt can place on a marriage, and how bankruptcy impacts it. It’s well worth the reading. And the changes to the Bankruptcy Code in 2005 called “BAPCPA” can even penalize couples remaining married when they file for bankruptcy, as this article by Wendell Sherk shows.

So if you’re in financial difficulties, don’t worry about whether bankruptcy leads to divorce; worry about whether not filing for bankruptcy will lead to divorce.