If you're having trouble making child support payments because you're in debt, it might be in your best interest to file for chapter 7 bankruptcy.
While filing for bankruptcy won't allow you to discharge your child support debts because they are considered "priority" debts, it can still offer several advantages that can help you to get back on your feet financially. The following are four of these advantages:
Discharged debts free up money for child support
Those who are in debt have numerous bills they need to pay with the inadequate income stream that's coming in each month.
You can't make child support payments when you've got many other debts that you need to pay off at the same time. This is especially true if paying off your other debts--like car payments or business expenses--is necessary for you to continue working and making money.
If you file for chapter 7 bankruptcy, unsecured debts like credit card debt will disappear, and this will free up money to help you pay off your "priority" debts like child support.
Non-exempt properties can be sold to pay off child support
When you file for chapter 7 bankruptcy, all of your property will be classified as either exempt or non-exempt. Non-exempt property must be given up to your bankruptcy trustee to be sold to pay off your debts.
In the long run, this can benefit you by getting rid of items you don't need and putting the money toward priority debts. Your bankruptcy trustee will handle selling off these properties so that you can focus on increasing or maintaining your income stream.
Income after bankruptcy filing can be used for priority debts
Unlike a chapter 13 bankruptcy filing, a chapter 7 filing does not require you to go on a payment plan to pay off unsecured debts. This frees up income that comes in after the bankruptcy filing.
Chapter 7 bankruptcy filers are more likely to be able to keep their home and car
One of the biggest benefits in a chapter 7 bankruptcy filing is that it usually allows filers to keep their home and car because these properties are classified as "exempt".
This allows individuals to avoid the hassle of needing to look for another place to live. Also, having a car is a necessity for many individuals if they want to continue working. Chapter 7 bankruptcy can prevent repossession of a vehicle and therefore allow individuals to continue to enjoy independent transportation to and from work or between various work locations.Share
12 August 2015
Family attorneys are hired to help families through all sorts of things. Everything from divorce, child custody and adoption can be handled by a family attorney. If you are planning to adopt a child, you will need an attorney to help ensure that everything goes well. There are so many documents that need to filed, inspections to be performed and approvals to receive. This blog will cover all different kinds of cases and situations that a family attorney may be able to help your family with. Everything from the good to the bad will be discussed right here on my blog.