What Happens to Support Payments in Bankruptcy?

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According to "The Fragile Middle Class: Americans in Debt," unemployment, medical bills, and divorce cause 40% of individual bankruptcies. How a divorce will affect an individual who files for bankruptcy depends on the settlement reached with regard to spousal and child support. If a person who owes you child support or alimony files for bankruptcy, the court would notify you as a creditor. Thanks to recent laws, you would also be protected from losing those funds. Family law claims are now considered "first priority" which means that it would be paid before other kinds of debts.

However, many times adjustment of support and the settlements wind up in family court once again. A judge considers the facts based on expert testimony and determines whether or not an adjustment is required. Many times, people try to shift or hide income to sway the decision of the judge.

For further information regarding Divorce in California contact Yanez & Associates at 714-971-8000. Call today for a free 60-minute consultation with an attorney at our firm.

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