Are you behind on child support?
Image by Photo by Andrik Langfield via Unsplash
With Greensboro bankruptcy, you can tackle most any debt. From the moment you file, bankruptcy makes sweeping changes to your life. It puts an end to overwhelming debt and gets you a new lease on your financial life. No matter whether you choose Chapter 7 or Chapter 13, bankruptcy helps with its automatic stay, debt reduction, and discharge.
The power of the automatic stay
Generally, when you file Greensboro bankruptcy, an automatic stay comes into effect. That means a ban on all attempts to collect on any debt you owe at the time of filing. It’s a useful tool to help you get a breather from debt collector activity.
If you’re facing repossession or foreclosure, it will stop these temporarily. Depending on the type of bankruptcy you file and terms, the ban can be permanent if you catch up on the debt. It can also temporarily stop some actions related to child support, but only for a while.
Sweeping debt discharge
Depending on the type of bankruptcy you file, you can see debts discharged with nothing paid on them, or after paying pennies on the dollar. With Chapter 7, you can unload credit cards and medical debt at 100% discharge within just a few months.
With Chapter 13, you can repay back balances on secured debt over a three to five-year period. Unsecured debt (credit cards, medical bills, etc.) can be reduced to pennies on the dollar. However, child support is a debt that cannot be reduced or discharged.
Child support is a special debt
Even though child support is an unsecured debt, the bankruptcy court will not forgive or lessen it. Only a family court can modify a child support order. Failure to pay child support in Greensboro can result in wage garnishment, loss of drivers or professional license, or even arrest.
With monthly child support obligations, neither Chapter 7 or 13 will reduce what you must pay. But if you file Chapter 13 bankruptcy and have past-due support or alimony obligations, these can be made part of your three to five-year repayment plan, if the court approves.
How Greensboro bankruptcy can help
In addition to temporarily halting some collection actions, with very specific limits, using Greensboro bankruptcy to deal with debt can make room in your budget to more easily meet your support obligations.
If you’re overwhelmed by credit card payments, medical bills, and other debts, it might be a struggle to pay alimony or child support. With these debts alleviated, you might find it’s easier to pay your monthly allotments ordered by the family court.
Bankruptcy may be the answer
Most Greensboro bankruptcy cases we deal with are due to major life events like job loss or divorce or an accident/illness. Most of the time, an unforeseen event drags the consumer into a tough financial situation they can’t climb out of without an intervention.
If some catastrophic event wrecked your finances, bankruptcy might be the reset you need. It’s important to meet your family court support obligations, and we’d like to help you get answers. To learn out more about bankruptcy as a solution to your child support issues, talk to a North Carolina bankruptcy lawyer.
Contact an experienced attorney
With debt relief from bankruptcy, you’ll have more money to pay your child support and less stress causing problems in your life. Bankruptcy is life-changing and stops unwelcome consequences of defaulting on child support obligations.
The most extreme outcomes of missing alimony and child support payments are arrest and jail time. Don’t let it get that far! To find out more about debt relief to help you get your finances back under control, read client reviews then call us at +1-919-646-2654.
Contact the Law Offices of John T. Orcutt today to schedule a free Greensboro bankruptcy consultation at one of our locations in Raleigh, Durham, Fayetteville, Wilson, Greensboro, Garner or Wilmington.