Child or Spousal Support Lien on Your Utah Home

If you are behind on your child or spousal support payments Chapter 7 provides very limited help, but Chapter 13 provides much more.

 

Child and Spousal Support—A Very Special Debt

If you are behind on child or spousal support then you owe a debt that is treated differently both outside and inside bankruptcy.

Before you file bankruptcy, your ex-spouse and support enforcement agencies have very aggressive tools they can use against you, your income, and your assets to try to make you catch up on unpaid support.

If you own a home, those tools include a lien that is very…

Spousal Support Lien — Fresh Start for a Utah Home

You can protect your home from a child or spousal support lien resulting from being behind on support payment.   If you are behind on your support payments, your ex-spouse and support enforcement agencies have tremendous tools to use against you to try to force you to catch up. And if you own a home, those tools include the support lien that is very likely imposed on your home’s title. Chapter 13 “adjustment of debts” gives you a powerful tool with which to fight back. Child/Spousal Support and Bankruptcy Bankruptcy is admittedly limited in its ability to help deal with…

Chapter 7 vs. Chapter 13–Unpaid Child and Spousal Support

Unpaid support has the highest priority of all the “priority” debts. Chapter 7 frees up money to pay it. Chapter 13 buys you time to do so.   In our last blog post we said that, very broadly speaking, if none of your unsecured debts are “priority” ones, you’d lean towards filing a Chapter 7 “straight bankruptcy” case.  And if you did have a “priority” debt, or more than one, and the amount owed is relatively large, you’d lean towards filing a Chapter 13 “adjustment of debts” case. The reason is that Chapter 7 usually discharges (legally writes off) ordinary unsecured…

Chapter 7 vs. Chapter 13–Child/Spousal Support Lien on Your Home

One of the biggest differences between these two consumer bankruptcy options are how they help with support arrearage debt.   Support Liens If you are behind on your child or spousal support payments and you own a home, most likely there is a lien on that home for that unpaid support debt. This means that your ex-spouse (or the support enforcement agency in his or her name) may be able to foreclose on your home through that lien. In any event, the lien is a cloud on your title, very likely hurting your credit and potentially jeopardizing your ability to refinance…

Making Sense of Utah Bankruptcy: When a Consumer Chapter 7 “Straight Bankruptcy” is Appropriate

Assuming you are a Utah consumer who needs serious relief from your creditors, when should you do a Chapter 7 bankruptcy instead of a Chapter 13 one?   Here’s the sentence we’re explaining today:

If you qualify under the means test, consider filing a Chapter 7 case when you don’t need the extra help of a Chapter 13 case to protect your assets, deal with divorce debts, pay taxes you can’t discharge, catch up on your home mortgage(s) or property taxes, and/or reduce payments on your vehicle loan.

Qualifying under the Means Test To file a…

Making Sense of Utah Bankruptcy: Writing off a Non-Support Debt

Besides providing a unique and powerful way to catch up on support arrearage, Chapter 13 can discharge other debts from your Utah divorce.   Here’s today’s sentence we’re explaining:

If you owe financial obligations from your divorce other than your child or spousal support, Chapter 13 can discharge them.

Divorce Financial Obligations Bankruptcy deals with debts. In certain very specific and often crucial ways it can help you with debts arising out of your divorce. But it does not get into the non-financial obligations like child custody and visitation and other parenting rights issues, or other non-financial disputes with your…

Making Sense of Utah Bankruptcy: Curing Child and Spousal Support Arrearage

Unlike Chapter 7 “straight bankruptcy,” a Utah Chapter 13 can legally prevent your ex-spouse/support enforcement from chasing you and your Utah assets.   In this “Making Sense” series, we’re helping you understand bankruptcy by explaining its main concepts through single sentences. Today’s sentence: Only Chapter 13 can stop your ex-spouse or support enforcement agency from very aggressively pursuing you, and can give you a reasonable time to cure your support arrearage, if you follow the rules. The Special “Automatic Stay” As Applied to Support The “automatic stay” is the part of federal bankruptcy law that strictly prevents creditors from pursuing…

Utah’s New Year Resolution #5: Solve Your Child or Spousal Support Arrearage Problem, Permanently

Support enforcement collection methods used against you can be very powerful. Fight back with something even stronger–Chapter 7 or 13.   An Especially Vicious Cycle Falling behind on child and/or support payments creates an especially vicious cycle of debt. That’s because the law gives your ex-spouse and the support enforcers extremely powerful weapons against you. Once you fall behind, extraordinary collection pressures can be put on you, means of intimidation that are way beyond what other creditors, and even tax collectors, can do. Support enforcement laws differ somewhat state to state. But in all or most states, besides your wages…

Crucial Question for our Cache Valley Clients: Can Bankruptcy Help with Child and Spousal Support Arrearage?

Chapter 13 protects you while you catch up on support, unlike Chapter 7.   Chapter 7’s Very Limited Help Regular Chapter 7 bankruptcy does only one thing to help if you are behind on your child or spousal support payments: it gets rid of your other debts so that you can better catch up on the support. If you are behind and your ex-spouse or the local support enforcement is starting to garnish your wages or bank accounts, or is threatening to take away your driver’s license, or your occupational or professional license, this is the only way that Chapter…

Crucial Question for Logan Utah Clients: Can Chapter 7 “Straight Bankruptcy” Help with My Support Obligations?

A regular Chapter 7 case can help you pay your support obligation in a limited but straightforward way. Is it enough for what you need or is Chapter 13 necessary?    Child and Spousal Support: Ways Chapter 7 Does NOT Help As our last blog post made clear, support obligations are an extraordinary type of debt which cannot be discharged (legally written off) with any kind of bankruptcy. One of the most important other tools of bankruptcy—the  “automatic stay,” which prevents creditors from pursuing you and your assets, also does not apply to support obligations under Chapter 7, as to either…