What Happens To Alimony And Child Support Debts During Bankruptcy?

  • What Happens To Alimony And Child Support Debts During Bankruptcy?

What Happens To Alimony And Child Support Debts During Bankruptcy?

Call: 888-297-6203

Discharge of debts is one of the most lucrative aspects of bankruptcy. Many businesses as well as individuals consider bankruptcy to discharge their debts. However, for most people discharge of debts is a significant relief in times of extreme distress. If you have debts or liabilities with respect to alimony or child support, you might be disappointed to learn that such debts cannot be discharged during bankruptcy. However, the other dischargeable debts once qualified can be discharged making way for easier repayments of alimony and child support. To know more about non-dischargeable debts, log on to https://www.recoverylawgroup.com/bankruptcy/

Domestic support obligations

A list of debts or obligations arises under domestic support obligations that mostly apply to alimony or child support payments. They can be termed differently like maintenance support, spousal support, or other similar terms. These are basic obligations that are a result of a previous court judgment could be divorce settlement, property settlement dispute, separation agreement, etc. The bankruptcy court cannot override a decision facilitated by another court hence, these obligations cannot be discharged. The domestic support obligations are considered necessary and mandatory and hence, there is no workaround for evading them.

Chapter 7 and Chapter 13 distinction

Chapter 7 referred to as liquidation bankruptcy is often assumed to discharge a maximum number of debts in exchange for all non-exempt assets the filer may hold. However, in the discharge list for Chapter 7 or Chapter 13, alimony and child support do not find their place. In Chapter 7 or Chapter 13, it is essential to keep up with alimony and child support payments consistently even after declaring bankruptcy. Under Chapter 7, any past alimony and child support will be prioritized first, and then lender debts. It is even more strict for Chapter 13 as it could lead to non-discharge of any debt if the alimony and child support payments are not kept up as per the payment schedule approved under Chapter 13 bankruptcy.

Bankruptcy and discharge are tricky and vast subjects. Experts from Los Angeles & Dallas, TX can assist you with your bankruptcy headache over a call instantly. Dial 888-297-6203 to know more!


    2022-05-31T05:17:29+00:00