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How Does Filing for Bankruptcy Affect Child Support Obligations?

Posted on in Bankruptcy

Hudson Valley area bankruptcy attorney

When you are struggling with excessive debt, any additional expenses can start to feel like impossible burdens. Unfortunately, this may include child support obligations stemming from a divorce or paternity judgment. Regardless of how much you may wish to contribute to your child’s financial support, you may find yourself wondering whether it is possible to obtain relief from child support obligations along with other debts by filing for bankruptcy.

Can Child Support Be Discharged in Bankruptcy?

When a person files for bankruptcy, they are able to have a variety of debts discharged provided that they fulfill their responsibilities. Dischargeable debts include mortgages, vehicle loans, personal loans, medical debt, and credit card debt, among others. However, they do not include child support obligations for either delinquent or future payments, nor do they include other domestic support obligations like spousal maintenance or alimony. This means that even after the bankruptcy process is complete, a pre-existing obligation to pay child support or spousal support will remain.

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How Can Chapter 5 Bankruptcy Help Small Businesses During COVID-19?

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Rockland County bankruptcy attorney

Small businesses have been hit especially hard by the economic effects of the COVID-19 pandemic. While many businesses have found some relief thanks to the Paycheck Protection Program and other terms of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a large number of businesses are still struggling to make ends meet and fulfill their financial obligations. Small business owners in New York who are facing debt problems may benefit from pursuing a recent option known as Chapter 5 bankruptcy.

What Is Chapter 5 Bankruptcy?

The option commonly referred to as Chapter 5 bankruptcy is in actuality a modified version of Chapter 11 bankruptcy outlined in Subchapter V of Chapter 11 of the U.S. Bankruptcy Code. This option has been available since the 2019 passage of the Small Business Reorganization Act, and it was initially available only to businesses with less than $2,725,625 in debt. However, the CARES Act has expanded eligibility to businesses with up to $7.5 million in debt, at least through March 26, 2021.

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Know the Implications and Options of Filing for Chapter 7 Bankruptcy

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Rockland County Chapter 7 bankruptcy attorney

When you are drowning in debt, it is easy to consider filing for Chapter 7 bankruptcy. It is, after all, a way to effectively eliminate most (if not all) of your debt so that you can begin to turn things around. It is, however, important to understand that there are some negative implications and that, in some circumstances, there may be other, better options if you live in New York.

Know Your State’s Laws

According to New York state law, individual debtors must go through credit counseling within six months prior to filing for bankruptcy. An analysis of income and expenses during that same time period will also be done to ensure the debtor’s median income qualifies for Chapter 7 bankruptcy. If the debtor does not qualify, he or she may still be eligible to file for a Chapter 13 bankruptcy.

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Study Finds Debt, Bankruptcy, and Cancer Often Go Hand-in-Hand

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Rockland County bankruptcy attorney

Being diagnosed with cancer, in and of itself, can be absolutely devastating. But what about the realization that you might spend the rest of your life in debt or need to file for bankruptcy because of the cost of treatment? It is difficult to fathom the mental and emotional impact of such news, yet this scenario is thought to be the reality of approximately one-third of all cancer survivors. Are you at risk? Information from a recent study may help you decide.

Factors Behind the Cancer and Debt Relationship

Healthcare costs have risen sharply over the last several decades, but cancer care costs have increased exponentially—two to three times faster than any other type of healthcare expense, in fact. Now, a patient can expect to spend anywhere between $10,000 to $60,000 per month for one cancer therapy agent, and most cancer patients need more than just one. So, for one year of treatment, patients could be facing costs in the neighborhood of $250,000 just to get started.

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Life After Bankruptcy: Reestablishing Credit and New Lending Prospects

Posted on in Bankruptcy

Rockland County Chapter 7 bankruptcy attorney

If you are thinking of filing for bankruptcy, then you have probably been dealing with financial troubles for quite some time. You may also be worried about what life will look like once it is all over. Is it as bad as creditors say it is? Once you file, is there anything you can do to reestablish your credit? The short answer to both of these questions is yes, but just like with most aspects of credit, the in-depth answer is a bit more complex than that.

A Fresh Start… Sort Of

On one hand, bankruptcy offers a fresh start. For Chapter 13 filers, this comes in the form of knowing that your debts will be paid through the reorganization process and in the cessation of constant calls from your creditors. For Chapter 7 filers, it is a chance to completely walk away from many of your debts. Unfortunately, this fresh start comes at a pretty hefty price.

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