Photo by Priscilla Du Preez on Unsplash If you’re considering bankruptcy, should you pay unpaid child/spousal support in the meantime? Might depend on whether you do Chapter 7 or 13. Our last three blog posts have been about what you should and should not do before filing bankruptcy. Three weeks ago we focused on keeping your assets, especially any retirement … Read More
This example shows how well Chapter 13 can protect you from aggressive collection of past-due support and give you a safe way to catch up. Today we put what we explained in the last three weeks of blog post into a sample Chapter 13 plan. It shows how powerfully Chapter 13 helps you if you owe past due child … Read More
If you owe unpaid support, Chapter 13 gives you a sensible, affordable, and sane way to catch up, while protected from support enforcement. The last two weeks we’ve shown how Chapter 13 can stop the collection of unpaid child and spousal support. First we talked about how this benefit is much better than Chapter 7 can provide. Then we … 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
In bankruptcy some debts are treated much, much better than others. Priority debts are treated much better in various important ways. Debts Are Different So the Law Recognizes Some Differences The law does not treat all debts the same. That’s because you have different kinds of creditors that you owe for very different reasons. The law tries to be … Read More
Bankruptcy wipes out most debts. The only ones that aren’t are explicitly not discharged under federal bankruptcy law. Debts Covered by the Discharge The basic rule is that bankruptcy discharges all your debts unless a particular debt fits a listed exception. Focusing on Chapter 7 “straight bankruptcy” today, you will likely receive an Order of Discharge from the bankruptcy court within … 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
Do you have a judgment or HOA lien on your home, or are behind on child or spousal support? Chapter 13 may be much better than Chapter 7. You may need the extra help of Chapter 13 if you have any of the following liens against your home: Judgment lien Homeowner association lien Unpaid child or spousal support Or … Read More
Here are 3 more Chapter 7 scenarios when you are current on your home mortgage but have other liens on your home. Our last blog post was about situations in which Chapter 7 works well enough in the following 3 debt situations: Second or third mortgages Property taxes Income tax with a lien recorded on your home In general, … Read More
You can put a “preferential payment” to work for you if you owe a “priority” debt–back child or spousal support, or recent income taxes.
Even if you file bankruptcy, certain actions can still be taken against you in divorce court, or about family law matters.
A bankruptcy trustee would pay your “priority” debts ahead of other debts in an “asset case.” But what happens in a “no asset case”?
Here’s what happens to “priority” debts in an “asset case.”
Bankruptcy can’t write off certain kinds of debts. Chapter 7 may give you enough help to avoid liens on your home from those debts.
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.