When filing for bankruptcy, family support payments like child support and alimony will be considered income. It’s important that you list these sources of income on your bankruptcy documentation. Failing to do so may damage your bankruptcy case. A Plano bankruptcy and family law firm can help ensure the process is handled correctly.
Family Support Payments and The Means Test
Income is important when filing bankruptcy because it helps the bankruptcy courts make decisions about your case. When you’re being evaluated for whether you qualify for bankruptcy, you will go through what’s known as a Means Test.
In some cases, income like alimony and child support can push you over the means limit, in which case you may no longer qualify for Chapter 7 bankruptcy. Even if this happens, you may still qualify for Chapter 13 bankruptcy.
Meanwhile, if you’re the one who’s paying these support payments, you may be able to deduct them if he or she is ordered by the court. This may help pass the Means Test and qualify to file for bankruptcy.
How a Plano Bankruptcy and Family Law Firm Can Help File for Bankruptcy
A Plano bankruptcy and family law firm can evaluate qualifications, and then go over options after the Means Test. Individuals contemplating bankruptcy or who are prepared to file for bankruptcy may consult Warren & Migliaccio for legal help throughout this process. We can provide legal guidance and can help ensure that all income and deductions are listed when taking the Means Test, such as family support payments.