If You Have Unpaid Child/Spousal Support

Wasson and ThornhillChild & Spousal Support

child

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

Chapter 7 and Unpaid Child or Spousal Support

Wasson and ThornhillChild & Spousal Support

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

No Discharging Child or Spousal Support

Wasson and ThornhillChild & Spousal Support

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

Unexpected Benefit: Use Chapter 13 to Stop Collection of Support Arrearage

Wasson and ThornhillChild & Spousal Support

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

Dealing with Simple and Difficult Debts in Chapter 7 and 13

Wasson and ThornhillBankruptcy Options

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