Bankruptcy and Child Support
It has come to the point where bankruptcy is the only option you have to rid yourself of your piling debts, so you file for bankruptcy. Even when you are officially declared bankrupt, you are still responsible for any back and future child support that you owe.
If you are facing bankruptcy and need advice about how child support fits into the process, contact the Birmingham bankruptcy lawyers at Greenway Bankruptcy Law, LLC today at (205) 324-4000.
Child Support in the Bankruptcy Process
When you declare bankruptcy, you are required to work out a plan with your lenders to pay them back over time for some of the debts that you owe. Under Chapter 7, some of your current assets are liquidated and split among those whom you owe. Under Chapter 13, your debts are reorganized so that they are easier for you to pay off over a period of time.
Regardless of which chapter you file, child support is always among the top priorities. In fact, child support usually takes precedence over all other debts. Even property that is exempt from creditors, which typically includes your home and automobile, may be liquidated to pay child support in the event of bankruptcy.
Bankruptcy can be an overwhelming process, especially when child support is involved. Contact the Birmingham bankruptcy attorneys at Greenway Bankruptcy Law, LLC at (205) 324-4000 for more information about how we can help you through your bankruptcy proceedings.