Divorce, Bankruptcy, and Your Credit Score

Photo credit: Creditguard.org

Divorce and bankruptcy go hand in hand. As a matter of fact, when I started practicing law, I was sharing space with an attorney and I asked him why did he practice family law and bankruptcy? His answer was exactly that.

Now, a new study by MoneyWise.com and Debt.com concludes that divorce is also likely to negatively impact your credit score.

Per the study of MoneyWise and Debt.com, 800 people were surveyed that were either “divorced” or “remarried” during November and December 2019. Four in 10 respondents said divorce had left them with debt of $5,000 or more.

Now add the costs of an average wedding, approximately $40,000, plus the average costs of attorney’s fees in a divorce based on multiple studies. Studies conclude the average fees and costs in a divorce and related expenses range between $13,000 and $15,000.

Now you can see how fast debt can be an issue when getting divorced, and this doesn’t include the fact of the increased expenses by living in separate households.

In the survey, 43% of participants said there are paying joint debt from a marriage. In addition, nearly 40% of those surveyed reported that their credit score had dropped at least 50 points. Remember, the more debt you’re in, the more likely your credit score will suffer. This may make it more difficult to buy a new car, home, or even get an apartment after the divorce.

Have questions regarding divorce and/or bankruptcy? Then contact attorney Alex Hernandez and schedule your appointment. Saturday appointments are also available.

The full article that appeared in Yahoo Finance News can be seen via this link.

Attorney Alex Hernandez

Representing clients in the areas of Chapter 7 Bankruptcy, Family Law/Divorce, and car and motorcycle accidents for 20 years. (904) 712-5565 or (305)-688-LAWS (5297). *Se Habla Español

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