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Getting rid of child support is not possible through chapter 7 bankruptcy. However, other debts can be discharged, leaving you enough cash to pay arrears for spousal or child support. Child support and alimony are priority debts that are not discharged when filing for bankruptcy. However, since most unsecured nonpriority debts such as credit card bills, personal loans, and medical debts are discharged in Chapter 7 bankruptcy, the cash you save might be sufficient to catch up on past due payments. If your credit score is bad, filing for bankruptcy sooner is recommended, as it helps you improve your credit score faster.
How can Chapter 7 bankruptcy help you with child support?
Despite thee being no provision to catch up on arrearage in Chapter 7, you can get assistance in child support payments in alternate ways.
- Chapter 7 bankruptcy helps get rid of unsecured credit card debt, which allows you to use the money to pay for child support.
- If the bankruptcy trustee sells any non-exempt property, the proceeds can be used to pay for child support arrears.
- All dischargeable debts, including utility bills and amounts owed for rental or lease contracts, are wiped out.
- All collection actions, including wage garnishment, are stopped allowing you to catch up on owed child support. However, since child support debt is not dischargeable, wage garnishment for this debt will continue.
While filing for bankruptcy, you must list all your debts, including child support. Questions regarding this are also asked in the meeting of creditors. If your debts are piling high, making it difficult for you to strike a balance between paying for essentials or clearing your debts, you must file for bankruptcy. Depending on your financial situation, you can choose to file for bankruptcy under Chapter 7 or Chapter 13. While you can reestablish your credit in around three years after filing for Chapter 7 bankruptcy, this period is more in Chapter 13. A bankruptcy lawyer can help you navigate the waters of the bankruptcy filing. To know more about bankruptcy discharge in Los Angeles, call 888-297-6203.