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Will Filing for Bankruptcy Get Rid of Child Support?

Posted in Child Support on 8th January 2012

Will Filing for Bankruptcy Get Rid of Child Support?

You can’t file bankruptcy solely to get rid of back child support, you should give up on that idea. Although it’s true that you can’t get rid of child support, a good bankruptcy attorney should still be able to give some possible options. If they don’t, move on. You can’t erase back child support. As a bankruptcy attorney,I often hear this from people who are overwhelmed by their debt:

“I don’t want to file bankruptcy, because it won’t get rid of my back child support and that is really what’s messing up my finances.”

Child support isn’t like regular debt. It won’t just disappear and you aren’t dealing with the average creditor. If you are really far behind on the payments, you are probably dealing with a government agency working to collect the debt, and it is likely that they have started garnishing your wages, or plan to soon. A garnishment for back child support doesn’t follow normal amounts either;they could conceivably garnish up to 65% of your paycheck.

BUT there is still help.

With a Chapter 13 bankruptcy, you can eliminate the involuntary garnishments on your paycheck. This is referred to as an “automatic stay”.What this does is prevent your creditors from coming after you while you make your Chapter 13 plan paymetns. You can stop even a government agency from collecting that 65% and limit what they can get. This puts you in control of your debt, not them.

So how does this work? You still owe the money, right? Right. When you file for Chapter 13 bankruptcy protection it means that you are reorganzing your debt;your attorney will work with you to develop payment plan outlining the repayment of your debt over a 3 to 5 year period.

Filing a Chapter 13 bankruptcy allows you to get caught up on those child support payments, without having to worry about some creditor taking the majority of your paycheck every month.

And since the Chapter 13 will eliminate most of yoru debt payments altogether and reduce the ones that are left, you’ll now be able to afford the repayment of that back child support, on your terms. So if an attorney tells you that you can’t get rid of your child support without mentioning the relief bankruptcy still affords, get help somewhere else. Your bankruptcy attorney should go over every option available to you in order to make sure they are doing the right thing for your specific case.

Will Filing for Bankruptcy Get Rid of Child Support?

Posted in Child Support on 3rd October 2011

Will Filing for Bankruptcy Get Rid of Child Support?

You can’t file bankruptcy solely to get rid of back child support, you should give up on that idea. Although it’s true that you can’t get rid of child support, a good bankruptcy attorney should still be able to give some possible options. If they don’t, move on. You can’t erase back child support. As a bankruptcy attorney,I often hear this from people who are overwhelmed by their debt:

“I don’t want to file bankruptcy, because it won’t get rid of my back child support and that is really what’s messing up my finances.”

Child support isn’t like regular debt. It won’t just disappear and you aren’t dealing with the average creditor. If you are really far behind on the payments, you are probably dealing with a government agency working to collect the debt, and it is likely that they have started garnishing your wages, or plan to soon. A garnishment for back child support doesn’t follow normal amounts either;they could conceivably garnish up to 65% of your paycheck.

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BUT there is still help. With a Chapter 13 bankruptcy, you can eliminate the involuntary garnishments on your paycheck. This is referred to as an “automatic stay”.What this does is prevent your creditors from coming after you while you make your Chapter 13 plan paymetns. You can stop even a government agency from collecting that 65% and limit what they can get. This puts you in control of your debt, not them.

So how does this work? You still owe the money, right? Right. When you file for Chapter 13 bankruptcy protection it means that you are reorganzing your debt;your attorney will work with you to develop payment plan outlining the repayment of your debt over a 3 to 5 year period.

Filing a Chapter 13 bankruptcy allows you to get caught up on those child support payments, without having to worry about some creditor taking the majority of your paycheck every month. And since the Chapter 13 will eliminate most of yoru debt payments altogether and reduce the ones that are left, you’ll now be able to afford the repayment of that back child support, on your terms. So if an attorney tells you that you can’t get rid of your child support without mentioning the relief bankruptcy still affords, get help somewhere else. Your bankruptcy attorney should go over every option available to you in order to make sure they are doing the right thing for your specific case.

I’ve Got Child Support Debt! Can Bankruptcy Help?

Posted in Child Support on 4th July 2011

I’ve Got Child Support Debt! Can Bankruptcy Help?

Child support payments can become quite a burden when it is put into an already tight budget. And these days, you’d be lucky to find a budget that isn’t tight. You may have to pick and choose which debts to pay and, while it seems that you could push off your child support payments, there is little tolerance from government agencies for not paying it.

If you start to miss payments, an agency can (and will) garnish your wages—but not at the regular rates put forth by the Missouri wage garnishment laws. If you are head of household, up to one half of your paycheck can be garnished. If you are not head of household, up to 65% of your paycheck can be garnished. That garnishment makes it near impossible to pay any of your other bills.

Child support debt is not a typical debt—it is considered family support and taken very seriously. In fact, if your child support is the result of a court order, not paying it may be considered a violation of that order. That could possibly result in your arrest for contempt.

Since child support is considered family support like alimony or maintenance payments, it isn’t able to be discharged in a Chapter 7. Fortunately, a bankruptcy lawyer can still help you with your child support debt. A Chapter 13 bankruptcy can put a stop to your wage garnishment and help you catch up on your child support payments. While the debt can’t be discharged, back child support payments can be put into a Chapter 13 repayment plan.

Can you imagine how much easier it would be to maintain your budget without the weight of child support debt and a wage garnishment? You can finally be back in control of your payments, your budget, and your paycheck. Remember, doing nothing changes nothing. You can change the situation that you are in—but only if you are willing to take action against it.

Child support debt, especially if paired with a garnishment, can render you unable to pay any other bills, sinking you farther and farther into debt. The best move to make next is to start looking at your options. Sure, you can get a free consultation from most attorneys, but the best ones will be able to provide you with great information before you even sit down with them face to face. Read up on bankruptcy FAQ, blogs, and even free publications to help you decide if bankruptcy is the best way out of debt.