608 Mabry Hood Road, Suite 202 | Knoxville, Tennessee 37932
Which kinds of debts stay after a Chapter 13 bankruptcy?
While a Chapter 13 bankruptcy can help you pay down your debts over time, the fact is that not all kinds of debts can be reduced or eliminated. There are exceptions to the Chapter 13 discharge rules, and those can affect you, particularly if those exceptions are the reason you want to file.
One of the major items you can’t discharge in bankruptcy is child support, since it’s considered to be an obligation ordered by the court. Spousal support can’t be discharged either. While Chapter 13 bankruptcy won’t allow you to discharge these debts, the collection activities for these debts may be temporarily postponed.
Under Chapter 13 bankruptcy, the bankruptcy code allows for creditors to collect child support or alimony from a person going through bankruptcy. However, there is a catch. While in Chapter 13 bankruptcy, a person’s earnings become property of the estate. According to the law, creditors can’t collect child support or alimony from property of the estate.
Because of this wording, it’s possible to get child support or alimony stayed at least temporarily. However, if a judge determines that the debtor’s Chapter 13 bankruptcy plan doesn’t adequately account for child support or alimony in the future, he may lift the stay, making the debts due immediately.
Domestic support payments are very specifically exempted from discharge, and your Chapter 13 bankruptcy could even be dismissed if you don’t pay your obligations. This is something to consider if you were thinking this kind of bankruptcy could help you with these obligations, because in fact, they are debts that can overturn your entire bankruptcy if they’re not maintained properly.
Source: FindLaw, “Debts that Remain After a Chapter 13 Discharge,” accessed April 05, 2016
Thank you. Your submission has been sent.
608 Mabry Hood Road, Suite 202
Knoxville, Tennessee 37932
William E. Maddox, Jr. LLC, Attorney at Law is located in Knoxville, TN and serves clients in and around Knoxville, Oak Ridge, Louisville and Anderson County.
Attorney Advertising. This website is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. [ Site Map ]
Martindale-Hubbell and martindale.com are registered trademarks; AV, BV, AV Preeminent and BV Distinguished are registered certification marks; Lawyers.com and the Martindale-Hubbell Peer Review Rated Icon are service marks; and Martindale-Hubbell Peer Review Ratings are trademarks of MH Sub I, LLC, used under license. Other products and services may be trademarks or registered trademarks of their respective companies. Copyright © 2021 MH Sub I, LLC. All rights reserved.