Bankruptcy can actually help solve your child support problems even though you cannot discharge child support in a bankruptcy.
What Bankruptcy Can Do For Child Support
Filing a Chapter 13 bankruptcy could do the following for your financial situation:
- Help you get caught up on your child support obligation;
- Prove to the judge in your child support case that you are doing something to address the issue;
- Lower interest rates on some secured debts;
- Stop garnishments of your wages by unsecured, general non-priority creditors;
- Stop collection calls;
- Stop a foreclosure and
- Discharge some or most of your unsecured, general non-priority debt.
One Law Firm – Two Areas of Law
There are a number of options that Husker Law can provide individuals who have found themselves in trouble with respect to their child support obligations.
As bankruptcy attorneys, we can assess your situation and discern whether a Chapter 7 bankruptcy, discharging all of your general unsecured debt, will provide the relief you need to be able to stay current on your child support obligations.
As family law attorneys, we can determine whether you would be eligible to modify your current child support obligation. This is why Husker Law is the absolute best fit for your child support issue.
Most firms will specialize in one area of the law or the other. Husker Law specializes in Family Law and Consumer Law, so you get full, complete answers and experienced, sound advice for your all your needs.
How It Works
If you are behind on your child support, a Chapter 13 bankruptcy could truly provide substantial relief. Most people know that you have to pay back some or all of your debts in a Chapter 13 bankruptcy. When we draft your pleadings we will categorize your debts into more or less one of three basic categories. Your debts will be labeled Secured, Unsecured General Non-Priority and Unsecured Priority.
The way that your debt is categorized determines how, when and at what percentage the debt is paid. Child support falls under the “Unsecured Priority” category. That means that it must be paid in full throughout the course of the plan. A Chapter 13 plan will detail what your monthly plan payment will be and the length of the plan. You are allowed up to five years to pay the debt.
Pay Debts That Matter, Discharge Those That Don’t
For example, if you are behind $15,000 in child support, you may have already had your taxes intercepted and you driving privileges revoked. Once things get to this point, it is very difficult to get caught up without getting creative and/or hitting the lottery.
This is why a Chapter 13 bankruptcy could be the answer. On $15,000 of child support arrearage, in a 60-month plan, you will be paying approximately $250 per month toward the arrearage.
Your total plan payment will depend on your other debts and income. Read our blog, “How Is A Chapter 13 Plan Payment” to learn more about how plan payments are calculated.