Bankruptcy Impact on Your Marriage and Marital Breakdown
According to Dr. John Gottman, an expert in Marriage and Family Counseling, 69% of marital conflicts are never solved.
As a result, there can always be some lingering tensions beneath the surface.
That’s especially true when the same issues keep coming up.
Couples fight for a variety of reasons, with money typically falling somewhere in the top five topics of discussion and disagreement.
Money can have a huge impact on a marriage, especially when you find yourself in debt.
Accepting that debt and having to file for bankruptcy can add even more stress, and may threaten to breakdown your marriage.
Dealing With the Breakdown
Maybe your marriage was already in a rocky place before filing for bankruptcy.
Or, maybe you’ve decided to get a divorce and now you don’t think you can handle the debt on your own.
Whatever the case, there are plenty of negative effects that come with filing for bankruptcy.
You could lose your non-exempt assets, including your house or car.
If you’re still married, that could leave you both with nowhere to live, which is frightening for anyone, but can be especially damaging if you have kids.
If you’re going through a divorce and your house gets taken away, it could impact your divorce proceedings and how assets are to be split.
Are There Other Options?
If debt and financial issues have negatively impacted your marriage, there are other options besides bankruptcy to consider.
One of the most viable options is a Consumer Proposal.
A Consumer Proposal allows you to work with a Licensed Insolvency Trustee to negotiate with your creditors.
You’ll agree on a specific amount of your debts to pay off. Typically, it’s only 20-50% of the actual amount you owe.
The great thing about a Consumer Proposal is that, as long as you follow the agreement and make monthly payments, your creditors cannot come after you.
You won’t lose your home, car, or other assets.
If you want to stay married, filing a Consumer Proposal can help to make your financial situation less stressful, so you can start putting more focus into your relationship.
On the other hand, if your marriage has already broken down and you’re personally struggling with debt, a Consumer Proposal can make paying it off easier for you without you having to lose your important assets.
The divorce rate in Canada is approximately 38%.
While there is no way to determine exactly why so many couples split, it’s safe to say that money is sometimes a factor.
If you’re worried about how bankruptcy is impacting your marriage, contact Bankruptcy Canada to discuss other debt repayment options, including a Consumer Proposal.