Embarking on the route of bankruptcy in the Golden State could serve as a light at the end of the tunnel for clearing or restructuring a myriad of debts. However, not all debts yield to the wave of bankruptcy, with child support standing as a notable exemption.
While bankruptcy may not erase the child support obligations, it might lend a helping hand in easing the financial strain tied to these payments. If financial clouds are looming and the path ahead seems uncertain, reaching out to Law Offices of Terrence Fantauzzi at (909) 552-1238 for a complimentary bankruptcy consultation might help in shedding light on the available routes.
The Landscape of Bankruptcy Varieties in California
The terrain of bankruptcy in California showcases several bankruptcy variants, accessible to both individuals and enterprises. Amongst these, Chapter 7, Chapter 11, and Chapter 13 emerge as the prevalent choices, which we will delve into in this discourse. If your curiosities extend beyond these common chapters or into the realm of business bankruptcy, a free consultation at Law Offices of Terrence Fantauzzi awaits your call.
Unveiling the Chapter 7 Bankruptcy Veil: What About Child Support?
Chapter 7 bankruptcy unveils a pathway towards liquidating assets to placate creditors and disentangle from debts. The spectrum of dischargeable debts under this chapter is broad, encompassing credit card dues, medical bills, and the likes. Yet, when it comes to child support, it bears the emblem of a priority debt, standing resilient to discharge under Chapter 7 bankruptcy.
The Chapter 11 Bankruptcy Avenue: Its Stance on Child Support
Primarily the choice of corporations or business entities for orchestrating debt reorganization, Chapter 11 bankruptcy isn’t alien to individuals. The endeavor here involves drafting a debt reorganization blueprint, taking into account assets, income, and expenditures, aiming for a nod of approval from both the bankruptcy court and the creditors. Similar to its Chapter 7 counterpart, child support remains a priority debt, unswayed by the discharge wave of Chapter 11.
Chapter 13 Bankruptcy: A Glimmer of Respite for Child Support Payers?
Should you possess a consistent income stream and the capability to chart out a repayment plan spanning three to five years, Chapter 13 bankruptcy could unveil a viable trail. While it shares the intractable stance on discharging child support with the preceding chapters, Chapter 13 introduces a unique facet.
It allows the incorporation of child support payments within the repayment blueprint, stretching them across five years, contingent upon court approval. However, a stumble in adhering to child support payments post-Chapter 13 plan could trigger a bankruptcy dismissal or morph into a Chapter 7 scenario. Thus, embarking on this route necessitates a stable income forecast for the foreseeable horizon.
Your Path to Clarity
Do the layers of bankruptcy and its interplay with child support evoke a series of questions? Or, are you prepared to step onto the bankruptcy boulevard? A call to Law Offices of Terrence Fantauzzi at (909) 552-1238 can open the doors to a free bankruptcy consultation, guiding you through the intricate tapestry of bankruptcy and child support, and illuminating the viable paths amidst the financial thicket.