When you start falling behind on your child support or spousal support payments, you might have no idea how to get caught up. If you are in this position, you might wonder if bankruptcy could help.
Bankruptcy may provide you with some relief, but you will have to choose the right branch. It would also be helpful if you thoroughly analyzed alternative options, too. Bankruptcy is never something to dive into without serious consideration. Here is some information about the effects that bankruptcy may have on past-due child support or spousal support payments.
Chapter 7 Does Not Provide Help for These Debts
The first thing to know is that you must choose the right branch of bankruptcy to receive any assistance for child support or spousal support balances. Chapter 7 bankruptcy is a popular branch that people prefer in many cases, as it offers a lot of benefits, but it is not the best option for past-due support payments. Chapter 7 does not provide a way to catch up on these debts, so using it may not be helpful to you.
Chapter 13 Does Provide a Way to Help with These Debts
Chapter 13 is another branch of bankruptcy you can use, and it does aid with past-due support payments. It helps by offering you time to catch up through a court-approved repayment plan. If you qualify for Chapter 13, you will get up to five years to pay off the balances on these debts. Your plan will also offer a way to pay current payments at the same time. The result is that you will no longer have a past-due balance on support after you complete the plan.
Other Things Chapter 13 Helps With
As you see, Chapter 13 is the branch you should choose if your primary debt is past-due support. Chapter 13 does not only help with this debt, though. It can help you with most other financial obligations, too. This branch of bankruptcy gives you a way to catch up on any liability that you are behind on, including your mortgage payments, car payments, and credit card bills.
The court works on creating a payment plan that you can afford. If you follow it, you will be in good financial shape when you complete it.
If you are behind on your bills and support payments, evaluating Chapter 13 bankruptcy is a smart move. While it is not always the best way out of debt, it can be beneficial to many people. Call a bankruptcy attorney to learn more.
