Keeping up with your child support obligations can become difficult if you are facing financial hardship. Bankruptcy may provide a solution for getting up-to-date with child support and alimony. It is important to explore all your options and look at the benefits of each for regaining good financial standing.
You may want to consider filing Chapter 13 bankruptcy to manage your debts in a way that allows you pay off creditors as part of a 3-5 year payment plan which can include child support arrears.
Chapter 13 Bankruptcy
A Chapter 13 bankruptcy involves entering into a payment plan that is proposed to and agreed by the bankruptcy court. The process is designed to allow debtors to pay off debt each month and is managed by a court appointed trustee. In most cases, you can keep your property under the rules of a Chapter 13 bankruptcy.
With 3-5 years to pay off debts, dischargeable debts are satisfied by the end of the term. You will have the opportunity to get current with most taxes, avoid foreclosure on your home, and retain ownership of other valuable property that is exempt. You will need to present evidence you have regular income, as well as disposable income in order to qualify for Chapter 13 bankruptcy.
If you are in arrears on your child support payments, you may include the debt in a Chapter 13 plan. This is a priority debt, which means it cannot be discharged when you file for Chapter 13 bankruptcy. Getting up-to-date with child support arrears is an important part of your payment plan. If child support payment arrears are not satisfied the court will not discharge debt. You may be required to sign a certification at the end of your case stating you are current in child support payments in order to receive a discharge.
A relief of stay may be obtained if a creditor wishes to pursue child support when you have filed for Chapter 13 bankruptcy. Chapter 13 bankruptcy is often recommended for individuals who have outstanding debts, including child support. However, whether Chapter 13 is the right option for you will depend on your unique financial situation.
Child support is a priority debt and supersedes debts owed to other unsecured creditors, such as credit card companies. Filing Chapter 13 bankruptcy can help you manage your debts while continuing to fulfil your obligation of providing for children. It may help you to consult with a reputable credit counselling agency in Georgia to determine if Chapter 13 is the best option for getting back on your feet.
If you are concerned about being able to keep up with your child support payments and feel bankruptcy is the solution, speak to a lawyer who understands the process in Georgia. The firm of H. Lehman Franklin P.C. is here to support you throughout the filing of Chapter 13. Call our offices at 912-764-9616, or you can email our offices at email@example.com to discuss your financial situation with an experienced bankruptcy lawyer in Georgia. We are here to provide you with the guidance you need to regain financial stability so you can continue to honor child support payments.