Domestic support obligations are a certain class of debts recognized by bankruptcy law. Knowing what is a domestic support is important in evaluating the effects bankruptcy will have on you.
The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income is known as Chapter 13 bankruptcy. Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.
Chapter 7 bankruptcy can provide for a financial fresh start to those who use its power to rid themselves of creditors harassment and headaches – but not everyone is eligible to file for Chapter 7 bankruptcy protection. The following requirements must be met in order to file a Chapter 7 bankruptcy:
A Chapter 7 bankruptcy is also known as a liquidation bankruptcy. This means that any property that a Chapter 7 filer has that is not exempt may be liquidated or confiscated and sold to pay off debts.
The Federal Bankruptcy Code provides for protection from creditors. Chapter 7 and Chapter 13 of the Code are designed to help consumers get a fresh start, free from debt.
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