Season 1- Episode 11 - Can Bankruptcy Defeat Child Support. Is bankruptcy A Good Strategy Against the Agency.

Chris H  0:04  
Can bankruptcy defeat the child support, we decided to look into this topic because we've heard and other people said, you can use bankruptcy in order to separate from child support. So let's look into this a little bit more. As a result of the pandemic, many of us are struggling with all types of debt. Many of us have been put on furloughed, some have even lost their jobs and some are even on employment. And people handle financial stress in various different ways. Some want to just sit quietly, other just want to hold their head and shame and some people just want to separate and they cannot face the world. So if you're struggling with debt, there's an opportunity to file what is called bankruptcy. 

If you're on child support, is there a strategy in which you could use that to separate yourself from a password or be free of child support. But also let's look at it another way. Let's say you're not struggling with any debt whatsoever. You have plenty of resources, plenty of assets, but you just simply want to get away from child support. Can you use bankruptcy in order to do that? Let's explore that. What is bankruptcy? 

The legal definition is bankruptcy is a legal process, which people and entities can not repay a debt to creditors or they can seek relief. And in most jurisdiction, bankruptcy starts with a court. Now, just to remind everyone that bankruptcy law is a statutory federal law, authorized by you Nate's constitution, and the last time that this law was revised was 2005. In addition, Chapter 11 is reserved for corporations and partnerships, not for child support. So the leaves us with Is there a strategy in which to use to file bankruptcy and separate from Child Support? As you know, on this channel, we've said more than once that child support according to the United States Constitution, in the case law of the United States versus sage, that child support is nothing more than a contract. It's a payment.

 It's just an obligation, no different than any other contract. I want to thank everyone who reviewed our video watched our video call father filed a lawsuit in one as well as it's a corporation and not a government. I want to thank you for doing that. And if you are new to this channel, please subscribe and hit the notification bell for future videos. Hello, my name is Chris and in this session, we will review the bankruptcy laws and bankruptcy statute. 

To determine whether or not there is a legal opportunity in which to separate yourself from the Child Support Agency 45 CFR 264. Point three zero. This is the mantra for this channel, which is that every man is on the Child Support Program is just that some of us do not have active cases. And again, the case this section of the law is 45 CFR 264 point three zero. 

We have a section called call to action, where after we present the information we will review and provide our recommendation, our suggestions of what you can do in terms of child support. So, let's look at just a few forms of bankruptcy. We're not here to give an education on bankruptcy, we're only looking at an overview of bankruptcy as it relates to child support. So this is one of the forms that's used in the bankruptcy court. This is also another form 206. EF is also used for unsecured credit and claim. And now there are other forms. And of course you can speak to a bankruptcy specialist. If you are going to use this strategy, they'll show the show you the forms.

Chris H  4:27  
When you file for or when someone files a bankruptcy, there's a process called the automatic stay. That is it's a court injunction when you file for seven or 11 or 13 bankruptcy. And what it is is just a fundamental protection for the debtors. That is against bill collectors. That is once you file. It stops it stays or bill collectors creditors immediately. In other words, they won't be contacting you by phone. 

They won't be filing lawsuits in the case of Chapter 13. If you're facing a foreclosure or an eviction from your home, then again, this also stops that process. Later on, we will cover what is called non dischargeable. debt. That is a provision within the bankruptcy law that you should pay very close attention to. So let's look at chapter seven. That is bankruptcy law chapter seven. The main goal of filing is to just discharge or liquidation of your debts. That's the purpose of chapter seven, many of us are familiar with it. It's repeated in TV shows everyone's following. And basically what it is it's a restructuring. That is you discharge all of your debt, a trustee or a meeting with the creditors. 

They convene a meeting they decide to look at all your assets and liabilities. And basically at the end of that filing, all your debts are discharged. But they put your debt in two categories that is a pre filing debt. That is all the bills that are incurred prior to the filing that wants to be discharged as well as post filing. Those are bills and debt that accumulate while you're doing the paperwork but they're not part of the chapter seven filing. Next is chapter 13 bankruptcy. This is known as the reorganization plan. And that is if you want to keep your property such as your home, then you will go into what is called a three to five year debt payment plan. It requires to look at all your income to pay some of the debt but they put you on basically a plan. 

They also separate your debt and secured on secured. We'll talk a little bit about that we're not going to go into depth on which one's classified as secured versus non secured but understand this credit card debt and medical debt Usually unsecured in the process. Also, when you're working with the bankruptcy court through during that what is called a payback period, you must be on time with all of your payments, you cannot miss a payment, or else it voids or it pulls back the chapter, the chapter 13 if you're unemployed, or you have what is called irregular income, that's a problem for this section of the law. They like to see steady income. Basically, you have to prove that you can actually pay back the debt over the time period of three to five years. I have an arrow here on the screen was called priority debt. We'll cover that a little bit later on. So what are the common categories of what is called dischargeable debt? Well, the bankruptcy court has about 19 categories of debt that that can Not be discharged, right? 

That is once you go through the bankruptcy filing with a 13 or seven there what is called, there's a group that's not discharged and there's another group called commonly discharge. So Below is a list of commonly discharged debt. That includes credit card charges. collection agencies money owed for leases, rents, personal loans found for the families employers. utility bills will also be included in non dischargeable debt, auto accidents, claim business debt, civil court judgments, certain types, the ones that are based on fraud, you cannot write those off tax penalties, unpaid taxes, revolving credit and so on. So these are what is called a dischargeable debt. But there's another category of what is called cannot be discharged.

Chris H  8:58  
So Child Support bankruptcy, is there a strategy is there anything that bankruptcy can do in terms of separating you from Child Support? When we looked into this more closely, we found out that child support is was called priority debt. That is, it cannot be discharged in bankruptcy. In other words, and the debt also cannot be forgiven after you come out of bankruptcy, whether it's a chapter seven or chapter 13. And it also includes alimony payments. Yes, you have to pay those alimony payments. And those are called priority debt. He is also the big downfall. 

You cannot do automatic stay. That is, when you file for bankruptcy. You can still be charged with support payments, as well as the mother can seek support while you're going through the bankruptcy. That is, you are not absolved, you still have that responsibility. As well as you can be garnished as well. That's also part of So is there a strategy for using bankruptcy for chapter seven? Well, let's continue. There's also another category of debt called student loan. These are not dischargeable in bankruptcy and student loan, as you know, the debt is outrageous. 

It's growing. Right now. It's about $1.56 trillion. And it is just an albatross for the young people who have to carry a debt from student loan. We have a video call. millennial beware and we talk more about student loan and debt as it relates to child support. But what we want to take away from this is that student loan falls under what is called non dischargeable debt. similar to that of child support is a non dischargeable that you You still owe that money while filing for bankruptcy during the bankruptcy process, and when you get out of the bankruptcy process, you are still responsible for those payments. So here is my opinion, chapter seven, or chapter 13. Now that you have a basic understanding of the different bankruptcies, again, we just scratched the surface. 

When it comes to child support, there are no strategies that we can see separate from just filing bankruptcy, because you have a need for it. But we did find out that chapter 13 did give a slightly better results when it comes to the payment of child support, because while you're going through the repayment process or the reorganization plan, that could be structured in that plan as well. So here we are at a section called call to action. So, as always, we always recommend that you get the Department of Justice letter and the CLL form But in addition to that, after reviewing the bankruptcy, and we review several laws and court cases, and we did not list any court cases in here because they were too numerous. 

The bottom line is this. We feel we have not found in our research, any unique strategy for child support in bankruptcy. If one needs to file for bankruptcy, then sit down with a bankruptcy expert in order to resolve that problem. But understand that there's very little they can do in order to relieve you of child support payments, alimony payments, or non dischargeable debt, which is also student loan. So for us here, what we suggest is if you're gone through the bankruptcy process, and you still want to talk to us about the child support issue, we're here. 

However, if you are using this as your first line of attack, for child support, whether or not you need bankruptcy, we don't think that there's an opportunity there. Again, if you disagree with us, please feel free to send us an email. Now the real strategy, I would say if you can take advantage of opportunity is a 1099 Worker Program. That is a specific strategy for those that are in that category can escape child support. So if for any reason you're in a bankruptcy environment, and you need to also relieve yourself or separate from child support, and you're a 10 nine worker, that opportunity does exist. So here we are at the end. And as always, we welcome comments in our YouTube channel.

Chris H  13:40  
Email us you have any questions or comment? We also ask that you like us on YouTube and also press the notification bell. In addition, we asked for a donation in order to complete our research similar to this one. Just help us to move our channel forward. And we've always said this, our videos are free We just asked for a $25 gift or any amount that you you want to give us. So we're now at the end and there are a few channels on here that you can watch. But there is very little opportunity to use the bankruptcy laws in which to separate from the Child Support Program. Thanks for listening