HOUSTON – This Valentine’s Day, some couples are focusing on financial health rather than flowers and chocolates.
Attorney Regina Vasquez suggests that for couples struggling with debt, bankruptcy might be an unexpected way to save their marriage. Financial stress remains the leading cause of relationship breakdown, but Vasquez advocates for viewing bankruptcy as a “debt reset” that can give couples a fresh start.
“When you think about Monopoly, you think about bankruptcy, you think about ‘game over,’ but the truth is it’s not a game over. It’s simply a way to get out,” Vasquez said.
“That’s why, you typically see in the news, businesses who are filing for bankruptcy. It’s because they have a team of lawyers. Individuals, unfortunately, we don’t have a ‘hey, let me call my lawyer and tell them what’s going on so they can give me the best advise.’ So because of that, they don’t understand that it’s not the end of the world to file for bankruptcy and much it can benefit them.”
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Vasquez emphasizes that couples who face their financial challenges together often emerge stronger.
Couples considering bankruptcy don’t necessarily have to fear losing their homes or vehicles, Vasquez explains. The process offers various options for retaining important assets while working toward financial recovery.
Filing for bankruptcy does hit your credit score, but Vazquez explains how it can actually bounce back better than before.
“I see that people typically land about a 620, which isn’t horrible. It just depends how far ahead you are from 620, or how below you are from 620. Some people actually see an improvement in their credit score,” Vasquez said.
“A big factor is debt to income. So if we take debt to zero, and you still have your income, you’re actually likely to see an improvement in your credit score.”