Memphis, TN Bankruptcy Lawyer

If you have come to the decision that filing for bankruptcy is in your best interest, chances are you have been struggling to keep up with your financial obligations for some time. While bankruptcy may provide people with some relief from their debts, it doesn’t necessarily wipe the slate completely clean. In some cases, it’s not uncommon for someone who has been struggling to make ends meet to be unable to make their child support payments on a regular basis. It’s important to understand that although filing for bankruptcy can provide you with some financial relief, certain debts, like child support are not debts that can be discharged through bankruptcy proceedings. When considering bankruptcy, working with a bankruptcy lawyer can provide you with the guidance you need to proceed with the process.

Non Dischargeable Debts

While you may be hoping that filing for bankruptcy gives you the opportunity to experience relief from all of your debts, this is not the case. Certain debts are nondischargeable or priority, and therefore exempt from bankruptcy proceedings. Meaning, the bankruptcy trustee assigned to your case will aim to settle these debts first. You will still be obligated to settle any outstanding non dischargeable debts, this may include:

  • Child Support
  • Alimony
  • Income Taxes
  • Payroll Taxes

A bankruptcy lawyer can help you to make key decisions involving your bankruptcy case and help you to understand priority debts that you may still be obligated to pay.

Dischargeable Debts

When you file for Chapter 7 bankruptcy, there are certain debts that may be discharged during proceedings. Once bankruptcy proceedings have come to a close, you may no longer be required to pay certain debts, this may include:

  • Credit Card Debts
  • Medical Bills
  • Utility Bills
  • Student Loans (in some cases)

Having the opportunity to start fresh by filing for bankruptcy can help many to get back on their feet again. While you will still be required to settle certain debts, reducing the debt load you have been carrying can help you to better manage them in a timely manner. A bankruptcy lawyer with experience can assist you in enduring bankruptcy proceedings and determining which debts you owe are dischargeable or non dischargeable.

The Automatic Stay

If you have been unable to pay your bills, chances are you have been hit with endless calls from creditors. One attractive option when filing for bankruptcy is the automatic stay that is granted once your bankruptcy lawyer has filed the bankruptcy petition. When an automatic stay has been granted, all efforts by creditors to collect a debt must come to a halt. It’s important to be aware that although the automatic stay can stop certain actions from occurring, it will not be able to halt:

  • Criminal Proceedings
  • Actions to Collect Child Support or Alimony
  • Pension Loans
  • IRS Proceedings

A bankruptcy lawyer can help you sort through your financial affairs in efforts to help you determine the proper type of bankruptcy to file for based on your situation. While child support payments may be one of the first debts that will be paid during bankruptcy proceedings, it’s important to speak with a lawyer regarding your specific needs. Contact a Memphis, TN bankruptcy lawyer today for help when considering filing for bankruptcy.

Call the office of Darrell Castle & Associates, PLLC for their insight into bankruptcy law and child support.