There are three major chapters on which one can seek bankruptcy protection:
- Chapter 7
- Chapter 13
- Chapter 11
Chapter 7 (known as liquidation)
This chapter in bankruptcy applies to those people who have no money and therefore they’d seek to get rid of all the debts that they have.
This chapter in bankruptcy applies to those who have some kind of income, but they cannot pay back their debts dolor per dolor
This chapter in bankruptcy usually applies to the corporations and the individuals that do have assets but they seek to restructure their financial situation. Chapter 11 does not apply to everybody. But the chapters 7 and 13 apply to most of our clients.
One of the most frequent asked question by my clients is that whether or not one can discharge child-support (alimony) charges by filing for chapter 7 or 13 in bankruptcy?
Therefore, if you owe a child support or if there is a judgment on which one is obligated by law to pay for alimony (child-support), non of the chapters 3 or 13 of bankruptcy will bring protection to them. On the other hand, if there is a judgment on which a party or the husband or wife has to pay some kind of equalization amount to the other party, he or she can use the chapter 13 to either discharge the obligation or pay some partial payments much lesser than the original judged amount. However, chapter 7 will not protect the person.
If you ned more information, contact me directly at (310) 956-4600 for a 30-minutes free consultation or send a message to us through our website at MajdLawFirm.com
Farbood Majd Esq.
Family Law & Divorce Attorney
Law Offices of Majd and Associates
8200 Wilshire Blvd Ste #400, Beverly Hills, CA 90211