When filing for bankruptcy a really common concern appears with alimony obligations and child support. It is something of interest for those that owe alimony and child support and for those that receive alimony or child support. Bankruptcy will obviously have an impact on such financial and legal obligations but few people realize what these are.
When looking at alimony and child support, these are seen as payment types that are of a high priority as the bankruptcy proceedings happen. This practically means the debt cannot be discharged. The party that pays will need to catch up on the missed payments.
The difference appears when looking at the reorganization plan in Chapter 13 bankruptcy. Overall financial picture sees some relief in regards to the amounts owned and to whom they are owned. A payment plan is set up in this case so that it will be really easy to catch up on the owned child support. We see something similar with chapter 7. Child support cannot be discharged but other financial obligations will be eliminated in order to make it much easier for the payments to be done.
Most of the people that receive child support will be naturally concerned when filing for bankruptcy. The belief is that payments are no longer going to be protected. This naturally leads to so many negative problems that would need to be dealt with. In the event that you are now receiving child support payments and you will file for bankruptcy, ongoing payments received are going to be protected. Leftover money offered by these payments is protected as exempt assets.
Alimony is also seen as domestic support obligation, similar to the support payments. This practically means the exact same rules are going to apply. However, we do have some exceptions to know about. When filing for bankruptcy and owing alimony it is impossible to discharge the debt and you are forced to eventually catch up. When you receive alimony and you file for bankruptcy, income will also be protected.
When you are going to file for bankruptcy you will need to worry about so many different things besides alimony and child support payments. There are differences between the cases that appear for every single person out there and we have factors that will affect bankruptcy proceedings. The best options are different for different cases and we also need to think about the bankruptcy type that should be filed. Even whether or not this is a good idea is something that should be taken into account.
It is always important to talk to an attorney that is highly experienced in bankruptcy cases. The process is quite complex when dealing with alimony or child support payments. You will need all the help that you can get. Unfortunately, in various cases people try to do everything alone. That is a huge mistake. You want to be sure you are going to hire someone that knows all that has to be done.