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Most of the questions we get about alimony, child support and bankruptcy are from those who are paying out the money. For those who are behind on payments (or looking to lighten the load) you'll be disappointed to know that you're not likely to get any relief from your spousal or child support obligations from the bankruptcy court. You'll have to head to family court to get a reduction... But for those who are on the receiving end of spousal and child support payments, it's treated differently for you. Here's what you need to know about how alimony and child support are treated in Chapter 7 and Chapter 13 bankruptcy.
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The first step of filing for Chapter 7 is for your North Carolina bankruptcy attorney to run a means test. The bankruptcy means test assesses your income versus your debts to determine whether you are eligible for a Chapter 7. The means test (Form 22A) takes into account all of your income and other monies that come into your household each month. This includes alimony and child support. The only source of funds you don't have to include are Social Security and payments made to victims of terrorism (such as 9/11). Your expenses are deducted from this, but if your alimony is high it could prevent you from being eligible for a Chapter 7.
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