Newlyweds? 5 Ways Bankruptcy Could Make Your Marriage Better

If you or your spouse is entering a new marriage with a heavy debt burden or a troubled financial past, have you considered declaring bankruptcy now? It may not seem the most palatable thing to plan right before your wedding, but it could be a positive thing for a new family. Here are a few reasons why.

1. Old Debt Won't Derail Plans

A new couple makes a lot of plans, both jointly and as individuals. But when the marriage is burdened by the debt of one or both members, some - or many - of those plans may not be achievable. Crushing debt brought into the relationship might prevent you from buying a home, starting a family, moving to a desirable location, or traveling with each other. By ridding yourself of debt, your new adventure can really begin.  

2. One Partner's Debt Won't Be an Issue

If only one spouse is carrying a big debt burden, it could be a source of emotional conflict for either side. The person with a lot of debt or past money struggles may be embarrassed or feel overwhelmed trying to prevent it from being a problem for the other. Or the non-debt laden partner may find themselves unintentionally resentful or angry. Harassment and collections efforts could make things even worse.  

Whatever the emotional toll, the best way to prevent an unequal debt load from causing problems within the marriage is to make it a non-issue. 

3. You Get a Clean Slate

No matter who has had financial problems in the past (or what kind), marriage is a time for a fresh start. You have a variety of options when dealing with debt, but few of them wipe the slate away cleaner and faster than the right bankruptcy.

Chapter 7 bankruptcy is a straight discharge of eligible debts - meaning that once bankruptcy is completed, they will be gone. And even if you choose Chapter 13 (debt repayment), the repayment period is relatively short compared to many other options. 

4. Both Partners Learn Financial Skills

When you tackle a big financial problem like this, both partners will learn valuable skills and lessons from the experience. No matter whether one spouse has debt issues or it's a shared problem, the financial education will serve both. 

Financially inexperienced spouses may learn better ways to budget and prioritize expenses and debts. If one spouse hasn't personally had the type of financial setback the other has, they will have a new perspective that will serve to help them in the future. Both partners can even work with the credit counseling service to develop good money management habits. 

5. You Avoid Unwise Choices

If you worry about bringing debt into your marriage or fear it will cause relationship problems, you may feel compelled to take action that isn't in your best interests. For instance, a spouse might try to walk away from the debt to avoid dealing with it. Or you might be lured in by the claims of debt consolidators or debt negotiators and end up worse off than before. You might even raid retirement accounts much earlier than you anticipated. 

Bankruptcy, on the other hand, is a legal process that will improve the situation of most debtors. By choosing it, you take the sometimes difficult but safer course to a real solution. 

Is your new relationship weighed down by the financial struggles one or both spouses bring into it? If so, start taking control by learning more about bankruptcy options individually and in tandem. At Custer Custer & Clark LLC , we can help. Make an appointment together today.