Filing for Chapter 7 bankruptcy is one of the most effective ways of relieving yourself of an unmanageable amount of debt. Bankruptcy could release you from—or discharge—most debts, from medical bills to credit card payments, but some financial obligations will remain. One of these is child and spousal support.
If you have questions about child and spousal support during Dallas Chapter 7 bankruptcy proceedings, we are here to help. Let a knowledgeable Chapter 7 bankruptcy attorney from Allmand Law Firm, PLLC, advise you of your rights and obligations and help you prepare for a fresh financial start.
The Ongoing Obligations of Child and Spousal Support
During a Chapter 7 bankruptcy in Dallas, it is important to understand that child support and alimony are treated differently from other types of debts under federal bankruptcy law. Unlike most debts, these financial responsibilities cannot be discharged. It does not matter whether the court order for support was issued in Texas or another state. In either case, the court-ordered child and spousal support requirements remain fully enforceable during and after the bankruptcy process.
The ongoing obligations include current support payments and any past-due amounts. If you are in arrears of child or spousal support, your responsibility to make those late payments, including any accrued interest and enforcement penalties, will continue even after your bankruptcy.
The Limited Effect of the Automatic Stay
When you file for Chapter 7 bankruptcy, you are protected by what is legally known as the automatic stay. This immediately halts creditors’ efforts to collect payments from you, whether it is through phone calls or lawsuits.
However, the automatic stay does not apply to child support or alimony obligations. Any failure to comply with court-ordered child support and alimony during a Chapter 7 bankruptcy in Dallas can lead to serious consequences, such as contempt of court charges and, in severe cases, incarceration.
What Is the Impact on the Receiving Party?
If you are the recipient of child or spousal support, it might feel intimidating to enforce this court order for support during a bankruptcy proceeding, but the automatic stay does not preclude these support payments from continuing.
You can continue to use legal channels to enforce payment, such as filing a proof of claim with the bankruptcy court to request payment of any arrears from available bankruptcy estate funds.
You also have legal options if the paying party attempts to discharge financial obligations that are not legally considered support, but may affect child or spousal payments. For example, the court can reclassify certain divorce-related property settlements as non-dischargeable support to prevent the paying party from abusing the system. In situations such as this, it is essential to speak with a Dallas attorney about how Chapter 7 bankruptcy could impact your child and spousal support.
Call an Attorney in Dallas About Alimony and Child Support During Chapter 7 Bankruptcy
When it comes to child and spousal support during Dallas Chapter 7 bankruptcy cases, there are important legal factors to consider. If you are going through the bankruptcy process and are under a court order for child support or alimony, it is crucial to have legal assistance.
Our experienced lawyers at Allmand Law Firm, PLLC, could review your circumstances and help you understand your rights and obligations. Contact us as soon as possible for a private consultation.
