Filing for Chapter 13 or Chapter 7 bankruptcy in Littleton, Centennial or Aurora can help you get relief from many harassing creditors. This includes those unexpected medical bills, necessary business debts and overwhelming credit card debt. While there are many debts which are dischargeable when you file for bankruptcy, there are a few that cannot be discharged. Generally, these are taxes and student loans (bankruptcy law is complex, however, and occasionally you are able to apply for an exception – this is why it is important to work with a bankruptcy attorney who has a thorough understanding of bankruptcy code and exemptions). There is one type of payment you will be required to make, however, and this is child support payments.
Child Support Payments Still Due
Child support is one of the debts which you cannot discharge with a Chapter 13 or Chapter 7 bankruptcy in Arapahoe County. This is because in Chapter 7 bankruptcy, child support debt is called a “priority debt.” If you fall behind on your child support payments, the automatic stay (which usually prevents creditors from coming after you to collect) will not protect you from a lawsuit to collect past due payments.
How Does Bankruptcy Help with Child Support, Then?
While child support itself isn’t dischargeable, filing for Chapter 7 or Chapter 13 bankruptcy in Centennial, Aurora or Littleton will free you up financially so that you will be able to make your payments. Also, filing for Chapter 7 bankruptcy often can protect you from a lawsuit to collect child support. For example, if you have assets which are nonexempt, the bankruptcy trustee will sell those assets and distribute the money to your creditors. It is important to understand that creditors are all treated differently – some will be paid, others will not. Because child support is a priority debt, it is paid before all other debts – even before other priority debts like taxes. In this example, because past due child support payments were made (because of the sale of your nonexempt assets), you will avoid a lawsuit they would have filed in order to collect.
If you are struggling to pay your child support, bankruptcy can help you. While it doesn’t discharge child support payments, your finances will be freed up from other bills so that you are able to make payments. Don’t struggle alone – work with an experienced bankruptcy attorney like Barry Arrington, who can help you get the best fresh start possible.
If you are considering filing for Chapter 13 or Chapter 7 bankruptcy in Littleton because you aren’t able to make your child support payments, don’t be afraid to consult with people who can help you. It is very important that you work with an experienced bankruptcy attorney. Call now to request your free initial consultation with Barry Arrington, a trustworthy and understanding bankruptcy lawyer at 303-205-7870 or submit the “Get Help Now” form to begin your journey towards financial freedom.