Bankruptcy After Divorce

Why are you immediately turning to bankruptcy? Sell the house, get into something you can more reasonably afford, call your creditors and see if they can lower payments temporarily, ask for a raise, start clipping coupons, get a second job, learn how to make and sell items, clear out all the stuff in your house you don't need/use and sell on craigslist... Unless you've exhausted all those options and many many more, don't go the bankruptcy route...

Could you get a roommate until you sell the house? Or take on a part time job to fill in some of the $$$ not coming in? Cut your expenses by going thru your budget and cancelling anything that's not necessary. t's not as easy to declare bankruptcy as it use to be and should only be your last resort.

I would try to sell the house as quickly as possible and downsize so you can live within your means minus the child support. There is a chance that with him no longer being employed the amount could be greatly reduced anyways, plus it is always a good idea to not count on money from someone who is clearly not being very responsible. Bankruptcy is not the end of the world, but should not be your first choice. Also be aware if any of the debt you have was incurred by both of you. When my father got divorced he took half the debt, but then found he could not keep up with all the payments. He filed for bankruptcy and the companies then went after his ex wife for payment (as they have every right to do). Well, she then sued my father and he ended up still having to pay over half of the money he had just filed bankruptcy to get out of, and he still has to deal with the bankruptcy on his credit. Talk to a lawyer before you do anything.

Jennifer T. hit the nail on the head. Bankrupcy shouldn't be your first resort. Consider selling this house you can't afford for something you can or perhaps rent out the house you live in and live in an apartment or rental home for a time. See if the rental income in your market will cover the cost of the mortage and other house related expenses while your income would be used for your personal expenses outside of the house.

Find a roommate or another single mom to share the expenses and space of this house with you. This will also add extra income and help with your expenses. Take an honest look at how you earn, spend and save money. Are there other means of earning income? Stop using your credit cards. Start only using your cash on hand. Stop tapping into your savings.

It sounds to me like there are many things you may need to consider before taking this big step and there are many ways to get to where you want to be but most of it requires you to take an honest, eyes wide open approach.

Please talk to a financial planner, an attorney.and a certified public accountant about your finances to come up with an informed decision.

Try not to make a permanent solution to a temporary problem. You need more information and wise advice before turning to bankruptcy as a solution to your financial problems.

My house was in foreclosure for over 5 years but the matter has been settled and all parties are in agreement. In the between time I paid off my credit cards (3) so each of them has a zero balance. I considered selling the house but had no buyers so I took it off the market. You definitely have options, discover them all.

Doesn't make sense that you recently purchased a home that you can't afford without the child support payments. Those payments couldn't have been that much given the 50/50 custody split.

Anyway, have you considered a debt consolidation company? I have never done it, but I had two friends who did and they were very happy. Their credit scores rose while they were working with the consolidation company because of consistent on-time payments and one was able to purchase a brand new car just after she paid off all her debt through the consolidation company. BUT you will NOT be able to use credit cards while working with the consolidation company.

Bankruptcy is a LAST resort.
Do you have a car payment? Needs to go.
Cut back on extras, cable, phone, memberships, etc.
Hold off on 401 contributions temporarily.
Food, shelter, lights, gas get paid first.
Get your income up. Add a PT job. Babysit, clean O. house per week for ca$h.
How much debt do you have?
Use Dave Ramsays debt snowball technique. Pay off small to largest.
Buy/borrow O. of his books or check out his website. You do t have to but anything to use his advice/techniques.
Good luck!

Put the house up for sale immediately. You probably will end up having to do a short sale. Yes, your credit is going to get plastered. If the house is also in your ex's name (I hope it's not), you'll need an attorney to help you with this mess.

Gamma G gives you good advice.

I'm so sorry you're going through this. From now on, never take child support payments into account when figuring what you can afford.