Friday, December 11, 2009

Chapter 7 Bankruptcy Help

written by: Steve Young

In the financial system that people are facing now, many are challenged with very complex financial decisions. Many people have just lost their job, incurred great medical bills or are even going through a divorce. These can be devastating at times to your everyday life and financial expectations.

Every individual is unique, but when you face a challenge like working through bankruptcy, you are never alone. You can always get a chapter 7 bankruptcy support. Countless men and women have faced the exact same problem and have survived and thrived. Luckily, people who file for bankruptcy in Denver may find that other difficult debts are removed from their lives and they may be able to re-structure their budgets to handle money much better. This freedom may make it much easier to maintain timely child support payments and pay off medical debts as a result. With other debts out of the way, persons going through bankruptcy may find it easier to pay off the debts that were not discharged. Over the year's people's opinion of bankruptcy have certainly changed. Whilst years ago you may have been imprisoned and looked down on it is now a viable and humane option for dealing with debts that you cannot afford to repay.


Bankruptcy can sometimes help in situations where support obligations are in arrears or a garnishment is about to effectuated for arrears. In some cases, the Bankruptcy Court could provide a forum to address any arguments about what may be owed or may have already been paid prior to filing bankruptcy. A bankruptcy judge may address accounting issues on what is due and owing in a support claim, but a Bankruptcy Court will typically not address any support orders made by a Family Law Court, or modify any future ongoing support.


Many people think that if they simply file Chapter 7 bankruptcy, then they will get rid of all of their debts. Unfortunately, this is not the case. There are some types of debts that cannot be discharged in bankruptcy by law. In other words, even if you complete bankruptcy proceedings, you still have to pay back these debts. These debts include child support, alimony, student loans, most taxes, many secured debts, and debts not listed in your bankruptcy petition. Filing for bankruptcy protection does not let your ex to discharge past due child support obligations. Any back payments owed for child support cannot be discharged in a bankruptcy proceeding.


The automatic stay rule which prevents creditors and other debt collection entities from seeking compensation from borrowers does not apply to child support payments. In other words, if you are trying to collect from an ex-spouse, his or her bankruptcy filing will not protect him or her from having to making good on past due support bills. Child support payments are considered main priority -- meaning that they must be paid off before other creditor obligations, such as payday loans, credit cards and medical bills -- but the receiving spouse may have to work with an attorney to ensure the proper and speedy expedition of said child support payments. If you want to know more about Denver bankruptcy, just visit Denver bankruptcy information.


1 comment:

Unknown said...

Good post! Thanks for sharing this information I appreciate it. God bless!

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