Filing for bankruptcy is a way for those facing financial instability to get back on track. In terms of Chapter 13 bankruptcy and its relation to child support arrears, it’s important to be fully aware of the process for repayment to ensure you remain in compliance. Dothan, AL, clients can turn to The Gil Law Firm when faced with complicated questions regarding their debt obligations, including just how back child support payments are handled.
Child Support Is a Priority Debt
Child support payments are considered a priority debt, and as a result they cannot be discharged according to law. This is due to decisions made by Congress, which have determined that these payments are too important to the public good to be completely removed through bankruptcy proceedings. Accordingly, you will be obligated to pay back any past amounts.
Past Child Support Can Reduce Unsecured Debt
While child support payments are considered a priority debt, they can actually help reduce the total amount of unsecured debt you are obligated to pay when filing for Chapter 13 bankruptcy. A greater amount of other types of debt (such a credit cards) can be discharged under Chapter 13 so that you are able to stay current on your past child support obligations. This may reduce you overall debt obligation.
Current Support Payments Must Be Made
In addition to back child support, you must also continue to make any current payments. If you fail to do, so your automatic stay can be reversed (which protects your property from seizure by creditors seeking debt repayment). In this case, creditors can go after your income in order to recoup debt.
Whether you are filing for Chapter 13 bankruptcy or need assistance with a personal injury claim, The Gil Law Firm provides trustworthy legal guidance based on more than 16 years of experience. Schedule your free initial consultation with a Dothan attorney by calling (334) 673-0100, or visit their website for more information.