Not surprisingly I have found that over the years that parents want to take care of their children more than anything else but their ability is often frustrated by other burdensome debt. The bankruptcy laws can help you accomplish this goal by placing support ahead of most other debts.
Domestic Support Obligations
Child support and alimony are by and large considered Domestic Support Obligations and are not dischargeable under either chapter 7 or chapter 13. Usually this support comes in the form of a weekly cash payment to provide for their necessities. Other times it may come in other forms, such as debt assumptions, school tuition, life insurance, etc. We can help you identify what is a Domestic Support Obligation and what is not and the dischargeable possibilities under different types of bankruptcies.
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Protection Under Chapter 13
Collection of these support obligations can be funneled through chapter 13 both making a record of payment while protecting you from levies or other collection efforts. Arrears can be paid over a period of up to sixty month and longer by consent. We can shape a plan that both protects you and accomplishes your goal to care for your children and meet your support obligations.
Protecting Your License
Tennessee law provides that your driver's license can be revoked if you fail to pay your child support. The loss of your license could rob you of your ability to support your child and maintain payments on your car, home or other necessities. Chapter 13 is a good option to consider to protect your license when faced with these collection tactics.
Under chapter 13, obligations considered to be property division can sometimes be discharged. Property settlements and orders of the divorce court requiring you to pay joint debts are sometimes dischargeable when it does not have the effect of providing for the other spouses necessities. For example, an obligation to pay the car note of the other spouse would normally be considered support and nondischargeable; however, the obligation to protect your ex-spouse who cosigned your car may be dischargeable. We will help you consider all of the factors to help you make the best decision about what chapter to file under.
If the obligation to pay a debt is considered support, you could pay this debt under chapter 13 and prohibit the creditor from collecting from your spouse or ex-spouse. Payment of these cosigned debts that are in the nature of support can often be stretched over sixty months.
Help Through Chapter 7
Both obligations for support and property division survive a chapter 7 discharge. The help available under chapter 7 is more limited than chapter 13. However, discharging other debts could free up enough income to make paying these Domestic Support Obligation affordable. Therefore chapter 7 should never be overlooked.
Contact Us Today
Call now to learn about what options are available to you in your particular financial situation. Contact our law firm today online or call 901-201-6012 to schedule a FREE CONFIDENTIAL CONSULTATION.
Unlike many firms, you will always discuss your financial situation with an attorney, not a paralegal or assistant.
We are a Title 11 debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. This ad does not create an attorney-client relationship until a written agreement is signed.