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
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
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
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
Overall, Chapter 7 deals with simple debts as well or better than Chapter 13 does, which deals with more difficult debts better. Debts in Bankruptcy When deciding between Chapter 7 “straight bankruptcy” and Chapter 13 “adjustment of debts” you look at many factors. You have to meet certain qualifications (usually easy to meet) to file either one. The amount … Read More
What makes “priority” debts so special?
You can’t legally write off child support or spousal support.
We’re lingering in the Thanksgiving spirit by appreciating what Chapter 13 has to offer.
Before deciding that you have to sell your home to pay your ex-spouse, find out your legal options. You may be pleasantly surprised.