Filing for bankruptcy in California can help you manage or eliminate various debts, providing relief from overwhelming financial burdens. However, certain types of debts, such as child support, are not eligible for discharge. Understanding how different types of bankruptcy interact with child support obligations is crucial. If you’re in a tough financial situation and need guidance, contact Law Offices of Terrence Fantauzzi at (909) 552-1238 for a free bankruptcy consultation.
Types of Bankruptcy in California
Individuals and businesses in California can file for several types of bankruptcy, but the most common are Chapter 7, Chapter 11, and Chapter 13. This article will focus on these three types. For more information on other bankruptcy options, including business bankruptcy, reach out to Law Offices of Terrence Fantauzzi at (909) 552-1238.
Chapter 7 Bankruptcy and Child Support
Chapter 7 bankruptcy involves liquidating your assets to pay off creditors and discharge certain debts, such as credit cards and medical bills. However, child support is classified as a priority debt and cannot be discharged through Chapter 7 bankruptcy. This means that even if you successfully file for Chapter 7, you will still be responsible for paying any outstanding child support obligations.
Chapter 11 Bankruptcy and Child Support
Chapter 11 bankruptcy primarily focuses on debt reorganization and is typically filed by corporations or business entities. However, individuals can also file for Chapter 11. The process involves creating a plan to reorganize your debts based on your assets, income, and expenses, which must be approved by both the bankruptcy court and your creditors. Similar to Chapter 7, child support remains a priority debt in Chapter 11 and cannot be discharged.
Chapter 13 Bankruptcy and Child Support
Chapter 13 bankruptcy allows individuals with a regular income to develop a repayment plan to pay off their debts over three to five years. Although Chapter 13 does not discharge child support debt, it does offer a significant advantage: you can include your child support payments in your repayment plan. This means you can spread out your child support payments over the duration of the repayment plan, assuming the court approves it.
However, it’s important to note that if you fail to make child support payments after your Chapter 13 repayment plan is in place, your bankruptcy case could be dismissed or converted to Chapter 7. Therefore, Chapter 13 is only recommended if you have a stable income that you expect to continue.
Get Professional Help with Your Bankruptcy Filing
Navigating bankruptcy laws can be complex, especially when dealing with non-dischargeable debts like child support. A bankruptcy attorney can help you understand your options and ensure that you comply with all legal requirements. If you have additional questions about bankruptcy filings or are ready to begin the process, contact Law Offices of Terrence Fantauzzi at (909) 552-1238 today for a free consultation.
Filing for bankruptcy can be a powerful tool to regain financial stability, but it’s essential to understand which debts can be discharged and which cannot. By consulting with a knowledgeable attorney, you can make informed decisions and find the best path forward.