Bankruptcy And Divorce- Dealing With Alimony And Child Support
Many people are losing their property today due to bankruptcy and divorce. Bankruptcy is the inability of an individual or a corporation to pay their debts. Divorce can cause a lot of financial stress to an individual leaving this particular individual no money to pay other debts. When one decides to go through insolvency, in most cases, they will be expected to compensate their former spouse either through property settlement or by paying monthly alimony and child support.
In most cases the former spouse will choose alimony and child support over property settlement. Bankruptcy and divorce may be a hard and trying moment for many people depending on the chapter that the individual chooses to file under. It is quite wise that the debtor goes for the counseling sessions before they submit their petition in court.
The counseling agency will be in a better position to explain under which chapter the debtor can file in cases of insolvency and divorce. In this case, the debtor will be able to know what the advantages and disadvantages of each of the chapters are. Chapter 7 or the liquidation chapter allows the debtor to have his assets sold so as to have the debt covered. Under this, the court will give an order of an automatic stay for some of the assets.
These are mainly the household assets of the debtor and in some instance the home of the individual. Under this chapter, child support and alimony have to be made on a monthly basis since they are not dischargeable. Under chapter 13, the court allows the debtor to keep all the assets while making monthly payments towards the creditors. In this case, the debtor will continue paying a monthly fee towards the former spouse and child support.
