Bankruptcy and Child Support
The stress that comes with not being sure you can settle your kid’s support fees, in view of bankruptcy, could make one’s life very strenuous. Luckily, there are answers that guarantee you can continue providing support even after filing for bankruptcy. By going through our profiled facts, you understand how a consumer proposal or bankruptcy affects alimony payments/child support.
Are there ways to discontinue or reduce my child support fees?
Absolutely not. These payments will still have to be made, whether you’re starting to file for bankruptcy or the process is already complete. Even amid bankruptcy filing, the court does not suspend/stall support obligations, meaning you have to continue paying. Nonetheless, if you’re behind schedule with regard to your payments, you could try to cut back on expenses, to create extra cash that goes towards the upkeep of your child.
What do I do when I am overdue on my child support payments?
Here are several measures you can choose to either eradicate or reduce unsecured arrears.
Filing a consumer proposal
Through the consumer proposal Toronto, you will effectively get to design a cost-effective debt repayment strategy, tailored according to your financial conditions. This is an official proposal to your creditors by a Court Officer or Licensed Insolvency Trustee so that you can repay just a part of the unsecured bill, instead of the whole. Discovering more about this option aids you to reclaim control on the whole debt and the upkeep payments. Make sure to visit our page for detailed information.
File for bankruptcy
Filing for bankruptcy can be an alternative, especially when you recognize that you are unable to repay your bills. It immediately terminates all unsecured debts, which in turn gives you a smooth ride in relation to settling your child’s alimony fee. For more specifics on the procedure and the influence it has on unsecured claims, be sure to look up our personal bankruptcy page.
What you need to know as a receiver of support payments
There are cases where a partner’s bills become overdue and they are pushed to file for bankruptcy. If you were collecting child support/upkeep fees from them, it might be necessary to hand in a claim for the cash owed to you, making you a “preferred creditor”. By contacting the Licensed Insolvency Trustee (LIT) supervising your ex’s bankruptcy file, you will get to know whom a preferred creditor is and the necessary steps to be taken to become one.
Who can I talk to when bankruptcy affects my alimony/child support fees?
If you’re in search of options that could aid in eradicating or curtailing your irritating unsecured claims, make it a priority to get in touch with one of our many regional debt experts for the assistance you badly need. Also, don’t hasten to file for bankruptcy before you have contacted our LITs, as they will take it upon themselves to reassess your condition while also going through all methods of debt control applicable to your case.
You are free to request a call for a non-committal assessment today at York Credit Services.