Florida Bankruptcy Lawyer Child Support Issues - Discharge & Reorganization

11 U.S.C. 523 provides discharge will not be allowed for debts owed (5) to a spouse, former spouse, or child of the debtor, for alimony to, maintenance for, or support of such spouse or child, in connection with a separation agreement, divorce decree or other order of a court of record, determination made in accordance with State or territorial law by a governmental unit, or property settlement agreement, but not to the extent that - (A) such debt is assigned to another entity, voluntarily, by operation of law, or otherwise (other than debts assigned pursuant to section 408(a)(3) of the Social Security Act, or any such debt which has been assigned to the Federal Government or to a State or any political subdivision of such State.

11 U.S.C. 523(b) further limits dischargeability of child support, by requiring any payment which may be dischargeable under another exception, is nevertheless non-dischargeable if "discharging such debt would result in a benefit to the debtor that outweighs the detrimental consequences to a spouse, former spouse, or child of the debtor."

Florida Bankruptcy Lawyers In Practice

Public policy requires governmental support and protection of the rights of children. In cases of financial hardship, state and federal financial support is provided to children, and in turn, Florida bankruptcy laws prevent responsible parents from eliminating liability.

Be aware the application of law to each individual is unique. Depending upon personal assets, liabilities, and financial history, all benefits may not be available. The most successful debtors retain Florida bankruptcy lawyers and plan well in advance. Through planning, with the assistance of qualified Florida bankruptcy lawyer, optimal timing, selective payments, and exemptions are most likely to be achieved without question.

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