Child and Spousal Support During Minneapolis Chapter 7 Bankruptcy

Filing Chapter 7 bankruptcy can bring relief from many types of debt. While there are some obligations that bankruptcy cannot erase, it is important to remember that the relief you get from discharging credit cards or other debts can free up money to pay for things like child support.

It is important to understand how child and spousal support during Minneapolis Chapter 7 bankruptcy is handled. Even if these debts cannot be discharged, filing for bankruptcy could still put you on the path towards financial stability. Let our dedicated Chapter 7 Bankruptcy attorneys answer your questions.

Can You Discharge Child or Spousal Support Obligations?

Child support and spousal support cannot be discharged in Chapter 7 bankruptcy. These obligations are considered a top priority under bankruptcy law, meaning they survive the bankruptcy and must continue to be paid even after you receive your discharge. This rule exists to protect children and former spouses who rely on those payments. Bankruptcy is designed to give you a fresh start, but not at the expense of ongoing family support.

Even though the debt itself is not eliminated, filing Chapter 7 can still help in other ways. By removing credit card balances, medical bills, and personal loans, you may create more room in your budget to stay current on your support obligations. Filing for Chapter 7 bankruptcy in Minneapolis could be what it takes to get caught up on your child or spousal support debts, and our attorneys can help you every step of the way.

Child Support and the Automatic Stay

When you file Chapter 7, an automatic stay goes into effect. This is a court order that stops most collection efforts right away. Your creditors are generally required to stop all collection efforts, including garnishments, lawsuits, or even phone calls.

However, support obligations are treated differently. The automatic stay does not stop actions to establish or modify child support. It also does not stop proceedings related to alimony. Minneapolis family court can continue reviewing support or enforcing an order, as Chapter 7 bankruptcy does not prevent the court from ensuring that support obligations are addressed.

What Happens to Wage Garnishments After You File?

In many bankruptcy cases, wage garnishments for regular debts stop once you file. The automatic stay will typically bring those collection efforts to an immediate halt, and you might even be able to have some of what was collected from your check refunded.

Child support and spousal support are exceptions during Chapter 7 bankruptcy in Minneapolis. The automatic stay does not stop wage garnishments for ongoing support obligations, and you will continue to pay during the course of your bankruptcy.

Chapter 7 Can Free Up Money to Pay These Obligations

Although filing for Chapter 7 in Minneapolis does not erase child or spousal support, it can still make those payments more manageable. By eliminating other unsecured debts, you may have more disposable income each month.

For example, if you were paying hundreds of dollars toward credit cards or personal loans, those payments may disappear after discharge. That freed-up income can then be directed toward staying current on support.

This is one reason many people choose to file. Bankruptcy is not about avoiding responsibility. Rather, it is your chance to create a realistic path forward. Getting out from under mountains of debt can make it easier for you to cover the expenses that matter the most.

Talk to an Attorney in Minneapolis About Child and Spousal Support During Chapter 7 Bankruptcy

If you have questions about child and spousal support during Minneapolis Chapter 7 bankruptcy, now is the right time to ask. Our attorneys can guide you every step of the way. Reach out to our team at Walker & Walker Law Offices, PLLC today for a no-cost, private consultation.