Bankruptcy Lawyer Bryan W. Stone answers the question: “Can I get rid of student loans by declaring bankruptcy?”
The reason most people feel forced to consider filing for bankruptcy is because their debts increase to unsustainable levels. Whether it’s a few large debts or many small ones, the total amount owed becomes too much to keep up with, requiring you to consider filing for bankruptcy. The hope is that bankruptcy wipes these debts away, allowing you to start fresh with a clean slate. Though that’s the goal, it’s unfortunately not always the reality. The reason is that some debts can’t be easily escaped and can instead follow you despite filing for bankruptcy protection. To learn more about which debts are hardest to shake, keep reading.
Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “What is Chapter 11 Bankruptcy?”
In addition to all the other trouble it can cause, divorce can be a costly endeavor. Large numbers of North Carolinians find themselves behind on child support debt, sometimes so much so that they may be contemplating bankruptcy as a way out. To find out more about whether this is doable, keep reading.
Can child support debts be discharged?
Unfortunately for those who have fallen behind on their support payments, child support debt is not dischargeable in bankruptcy. This applies to both Chapter 7 and Chapter 13 bankruptcies. The reason is that Congress passed laws categorizing some debts as priority debts, a designation which means that they are too important to be wiped out in a bankruptcy filing.
What does this mean?
The fact that child support debts are not dischargeable means quite simply that there is no way around paying them. Even if you file for bankruptcy protection and the judge approves your discharge you will still be left to pay all your child support arrearages.
Child support debt receives priority
Besides being non-dischargeable, child support debts are also given special treatment under bankruptcy law. This means that in a Chapter 7 filing child support debt is grouped with other priority debts and is paid off first, before money goes to other, lower priority debts. Even among priority debts child support is given a place of prominence, receiving money before others. Continue reading