The most common feature of approval of bankruptcy chapter 7 petitions is the wipe of debt. The process will start with liquidation of assets of the debtor and use the proceeds to repay the debt. When the amount is not enough to pay all the outstanding debts, the rest of balance will be forgiven or wiped out. Is the wipe out implemented to child support after divorce?
The financial problem most of the time doesn’t stop in finances itself. As the effect will be seriously impact the ability to fulfill daily needs and pay basic expense, finance problem could trigger problem in marriage. When divorce happens and the husband decides to file bankruptcy chapter 7, bankruptcy lawyers in baton rouge la will advise you debt that will not go to the wipe out.
Bankruptcy attorney in baton rouge la should be able to explain that certain debt is categorized as priority debt and can not be wiped out with the chapter 7. Child support is one of the examples. Different with unsecured debt, credit card debt or personal loan that will be wiped out after liquidation, child support is stay as responsibility. Under chapter 13, the child support is allowed to be consolidated, reschedule with longer period of payment. In summary, the child support can not be wiped out under chapter 7 but allowed to be consolidated under chapter 13.