For those in New Hampshire who are facing overwhelming debt but feel that with enough time they may be able to meet their financial obligations, Chapter 13 bankruptcy may be an option worth considering. However, it is important to note that not all debts can be discharged through Chapter 13 bankruptcy. For example, child support and spousal support delinquencies generally cannot be discharged, even upon completion of a Chapter 13 repayment plan.
One thing Chapter 13 can do, however, is put a temporary halt to collection activities regarding spousal support and child support. This may give the debtor the time needed to set aside financial resources for these debts or to address dischargeable debts, freeing up more income to pay back these delinquencies once the Chapter 13 repayment period is up.
However, those pursuing Chapter 13 bankruptcy are generally required to certify the full payment of child support and spousal support or their repayment plan must contain provisions for the pay back of any pre-bankruptcy child support and spousal support obligations. These obligations might be prioritized over other debts. In addition, even once the bankruptcy proceedings have ended, a debtor may still be obligated to pay child support and spousal support.
In the end, it is important to understand what is and what isn't dischargeable through Chapter 13 bankruptcy. While many debts can be discharged, there are some that will survive the Chapter 13 bankruptcy proceedings. Knowing what obligations one has both during bankruptcy proceedings and upon their conclusion is crucial to obtaining the fresh financial start Chapter 13 bankruptcy can provide.