Child and Spousal Support in Chapter 13 Bankruptcy

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Child and Spousal Support in Chapter 13 Bankruptcy

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If you have ended up accumulating large amounts of debts, bankruptcy might be a great way to get rid of those debts. However, while you decide to file for bankruptcy, it is vital to understand that not all debts get discharged during bankruptcy. According to Los Angeles based bankruptcy law firm Recovery Law Group, secured debts, as well as priority debts, survive bankruptcy. Secured debts are those debts against which the creditor has some asset (mortgage, auto loan, etc.) while priority debts include those like child support and alimony payments.

Chapter 13 bankruptcy offers a great chance for people with large amounts of debts and sufficient income to put a hold to collection tactics of creditors. Automatic stay is put in force when any individual files for bankruptcy, and this provides debtors with enough time to restructure their finances in order to pay their debts in time. Sometimes, debtors might also place a stay on the collection of child or spousal support. However, it is vital to remember that these debts are not discharged in bankruptcy.

Usually, support obligations (child and spousal support) are not affected by Chapter 13 bankruptcy. Individuals who file for bankruptcy under this chapter continue to make payments towards this obligation throughout their bankruptcy course. However, if they request to put a halt on the support collection during chapter 13 bankruptcy recourse, the court can allow it.

Since support obligations are considered priority debt which though unsecured is never discharged in case of bankruptcy, the debtors are expected to make payments towards this debt, even after their bankruptcy discharge. In case a debtor is successfully able to halt collection actions on these debts during their bankruptcy chapter, completion of Chapter 13 bankruptcy discharge will result in them having to pay for the obligations, till the support order requires them to. Chapter 13 bankruptcy discharge, therefore, has no effect on the payment of child and spousal support.

If you find all this too mind-boggling, it is best you consult with experienced bankruptcy lawyers Los Angeles who are aware of the various nuances of the law. You can call 888-297-6023 to seek professional guidance regarding the best approach to get back on track financially.