It’s an unfortunate truth that often times ‘money problems’ are cited as the leading cause or contributing factor to divorce. Considering this, it’s not unusual for a post-divorce bankruptcy (or two) to play a part of the life after divorce.
In dealing with bankruptcy concerns, child support becomes a critical factor for Florida law cases. If you find yourself facing this situation with your ex-spouse, you need to be informed about how bankruptcy affects child support payments.
Often, one party files for bankruptcy under the impression that any and all financial obligation to the other party will be dischargeable in the bankruptcy. However, this is simply not the case with domestic support obligation(s). In response to the economic downturn and housing market decline, a bankruptcy law went into effect in 2005, titled ‘The Bankruptcy Abuse Prevention and Consumer Protection Act’ (BAPCPA ). This altered the relationship of debtors and creditors, and even altered the relationships between creditors. This new law changed many things in the bankruptcy code including how a “domestic support obligation” will be treated.