If you are behind on child or spousal support, Chapter 13 is better because it stops collection of this unpaid support. Chapter 7 doesn’t. Last week we discussed situations in which Chapter 7 would help if you’re behind on child or spousal support payments. We made clear that Chapter 7 “straight bankruptcy” provides only limited help. Mostly it gives you relief … Read More
If you are behind on child or spousal support, Chapter 7 writes off all or most of your other debts so that you can catch up on your support. If you are behind on child or spousal support payments Chapter 7 may or may not be a good solution. Chapter 7 “straight bankruptcy” is the most common type … Read More
Chapter 7 prevents a support lien by discharging other debts so you can afford the support payments. Chapter 13 does so by stopping liens directly. Child and Spousal Support Liens If you fall behind on child or spousal support payments, your ex-spouse can put a lien on your home. (Most likely a lien can be imposed on your other … Read More
Bankruptcy does not discharge child or spousal support. The rare exception: if the support debt is not a “domestic support obligation.” We’re in a series of blog posts about special kinds of debt which bankruptcy may not discharge—write off. So far we’ve covered criminal fines and restitution, and income taxes. Child and spousal support are more like criminal debts … Read More
Neither Chapter 7 nor Chapter 13 stops ongoing child/spousal support payments. But Chapter 13 CAN stop collection of support arrearage. Most Debts Filing bankruptcy stops—or “stays”—the collection of most debts. (See Section 362(a) of the U.S. Bankruptcy Code about the “Automatic Stay.”) Then at the end of the bankruptcy case most debts are discharged—legally written off. (Sections 727 and 1328 of the Bankruptcy Code.) At that point … Read More
If you’re behind on support payments, filing under Chapter 13 can legally stop your ex-spouse and support enforcement from pursuing you.
A bankruptcy trustee would pay your “priority” debts ahead of other debts in an “asset case.” But what happens in a “no asset case”?
A support obligation is a very special kind of debt, and the resulting lien on your home has to be dealt with in a very special way.
If you have a child or spousal support lien on your home because you’re behind on support payments, with Chapter 13 you can safely protect the home. If you are behind on your support payments, your ex-spouse and support enforcement agencies have tremendous tools to use against you to try to force you to catch up. And if you own a … Read More
Unpaid support is the highest priority of the “priority” debts. Chapter 7 frees up money to pay it. Chapter 13 buys you time to do so.
One of the most important distinctions between these consumer bankruptcy options are how they help or donât help with support arrearage debt.
Get relief from what can be the most dangerous kind of debt. Support enforcement is very powerful. Fight back with something even stronger.
Chapter 7 “straight bankruptcy” doesn’t stop aggressive collection of back support. But Chapter 13 does, and protects you while you catch up.
Chapter 13 âadjustment of debtsâ has a special way of helping with your support obligation. How about Chapter 7?
No. The bankruptcy court respects and doesn’t change the support decisions of your divorce court. But bankruptcy can still help.
- Page 1 of 2