Managing your finances can be challenging when you become overwhelmed with debt. No one tells you about this trap when offering easy financing and low-interest rates. For many consumers, Chapter 7 bankruptcy offers a fresh start, with 239,125 filings this year.
Your child support is one of the sticking points when discharging your debt and getting the financial relief you need. Making your payments on time is critical for the process to go smoothly. Here are some insights on child support in Florida and Chapter 7 bankruptcy.
What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy allows you to discharge debt such as credit cards. A trustee is appointed to oversee the process to ensure an orderly liquidation of assets that are not protected. The proceeds are used to pay off or pay down your outstanding debts. Chapter 7 offers relief and helps you get the fresh start you need.
An Automatic Stay
Once you file for Chapter 7 bankruptcy, the judge orders a stay. Your creditors can no longer take action, including contacting you and garnishing your wages. The stay gives you the chance to reorganize and address any outstanding issues.
I can help you use Chapter 7 bankruptcy to give you the financial relief you need. The bankruptcy laws offer you the protection to reorganize so you can get a fresh start.
Child Support in Florida and Chapter 7 Bankruptcy
Chapter 7 bankruptcy allows you to discharge some of your debt after you pass a means test. It assesses your expenses and income to decide if there is enough net income to repay your debts.
One of the most significant aspects of Chapter 7 is the automatic stay. It is a legal injunction preventing your creditors from engaging in debt collection actions, including lawsuits and wage garnishment.
Your child support payments are set by state law and ensure your kids receive the proper help from both parents. It is regardless of the marital status or issues the parents have with each other. The basic idea is to ensure that your children get the help they need so there is no disruption in their quality of life.
In general, numerous debts cannot be discharged in bankruptcy. Child support is one of those obligations you must continue to pay. Any outstanding amounts you owe will not be discharged, and you must honor these arrangements. You must meet your child support obligations on time regardless of what is happening with your finances.
What if You Cannot Afford the Required Payments?
Sometimes, making child support payments can put you in a difficult financial position. These payments were created when your debt was manageable with higher disposable income. Times have changed, and you struggle to manage your child support and meet your obligations.
A possible silver lining is that child support is considered a priority debt. It is paid before your other creditors; you cannot discharge it in bankruptcy. In Chapter 7, a trustee is appointed to oversee the liquidation of non-exempt assets and use the proceeds to pay off your creditors. If you have back child support payments, the trustee will liquidate some of these assets and cover your child support payments first. These actions ensure you meet your obligations by addressing the most pressing financial issues.
I have decades of experience handling child support and Chapter 7 bankruptcy cases. I use my knowledge, experience, and skills to look out for you. Contact me, Lewis Roberts, at (407) 749-0080 to schedule your free consultation. I will review your situation and discuss the possible strategies we can use to address your child support issues.
What Chapter 7 Bankruptcy Can Do for Your Child Support Payments
Significant financial challenges could impact your ability to meet your child support obligations. Falling behind is a serious challenge that can harm your situation. I can help you get the relief you need using a customized legal strategy to address your issues.
Modifications
The courts realize that things happen and you could have setbacks impacting your financial situation. I work with you to get relief by modifying your child support payments to address the immediate issues. I use Chapter 7 bankruptcy as an option that could provide total relief and help you to catch up. You must continue paying your child support, but a modification in state court can make things easier during bankruptcy.
The automatic stay will stop collection efforts from your creditors. It goes into effect immediately upon the filing of Chapter 7 bankruptcy.
The stay will not stop you from paying your child support, and you must continue to meet these obligations throughout bankruptcy. For instance, the filing will not impact the debt if there is an order for back child support. You must continue to support your family, and the most logical avenue is to get a modification in the child support payments in state court.
Exempt Property
The bankruptcy laws let you exempt select assets, such as your home, from liquidation. I use these exemptions to stop creditor harassment and allow you to adjust to the new challenges.
Non-Exempt Assets and Child Support
The trustee could sell non-exempt assets to repay your creditors. Some examples of non-exempt assets are
- Second homes and investment properties
- Second cars
- ATVs, boats, and recreational vehicles
- Expensive jewelry
- Valuable art
- Electronics and appliances
- Family heirlooms
- Luxury clothing, including fur coats
- Investment and retirement accounts
- Musical instruments that are not critical for your income.
These are some of the non-exempt assets that the trustee could sell. These assets pay your child support first, allowing you to catch up and address the most pressing issues.
The Impact of the Automatic Stay on Your Child Support
The automatic stay will stop collection efforts from your creditors. It goes into effect immediately upon the filing of Chapter 7 bankruptcy.
The stay will not stop you from paying your child support, and you must continue to meet these obligations throughout bankruptcy. For instance, the filing will not impact the debt if there is an order for back child support. You must continue to support your family, and the most logical avenue is to get a modification in the child support payments.
I use my knowledge and experience to help you get these payments lowered to a manageable level. I show how you face financial challenges and need flexibility. The courts will review your finances and create an arrangement that works. Child support is complex, and I work tirelessly to ensure everything goes smoothly.
Why Choose Us?
One option for relief to address your child support in Florida is Chapter 7 bankruptcy. I have years of experience working on these cases and will guide you to ensure the most favorable outcomes. I will discuss the different options and how I can protect you throughout the process. Here are some ways I can make a difference in giving you financial relief and addressing your child support issues.
Free Consultation
I offer a free consultation where you can discuss your situation and learn about your options. You are under no obligation and will get practical legal advice about addressing these situations.
Customized Legal Strategy
I understand the challenges you face; no two cases are the same. You can find similarities, but your unique situation needs a customized legal strategy. I use my knowledge and experience to create a strategy that addresses your challenges.
Favorable Reviews
My clients give me favorable reviews for my knowledge, experience, skill, and professionalism. I work with you to address your situation and will not leave anything to chance. I understand the necessity of getting some relief and work tirelessly to ensure this happens.
Personal Attention
Many big law firms see you as just another client. Their attorneys are busy working on other cases and might not have time for you. Getting the personal attention you need and answering your questions is challenging. I work with you throughout the case and inform you about what is happening.
The attorney-client relationship is sacred. I respect it to ensure you get the highest quality of service. I respond to your emails, texts, and phone calls and am happy to address all your questions and concerns. Personal attention is one thing I pride myself on, and it makes a difference in the outcome of your case.
Contact me at (407) 749-0080 to schedule your free consultation. You have nothing to lose and everything to gain by letting me show you how I can make a difference. Time is of the essence, and the faster we move, the more effective relief I can provide.
