Whether it is during marriage, divorce or your post-divorce life, individuals in Texas and elsewhere might encounter financial issues. When this occurs following a divorce settlement, however, it can present major financial hardships. The obligations following dissolution can seem overwhelming. In fact, many spouses experience anxiety over how these financial obligations will impact them long-term or if changes to their career or income occur.

A divorce decree often includes financial obligations, such as spousal maintenance and child support. These might seem common and straightforward, but they can amount to a significant amount of money paid each month to a former spouse. Thus, when financial troubles come about, one might find it challenging to meet these ongoing obligations. In most cases, bankruptcy seems like a valid and promising solution. However, when a person is behind on these obligations, it is important to understand how filing for bankruptcy could impact these support obligations.

How can bankruptcy help with post-divorce obligations? While this process cannot be used to eliminate child support and spousal maintenance payments that are past due, it might be helpful to eliminate certain obligations under a property settlement. The Chapter 13 bankruptcy process could help manage past due obligations, helping one avoid court and even jail time.

Child support payments are seen as necessary; however, according to one report, less than 50 percent of custodial parents owed child support receive their payments in full. In fact, it is reported that on average those owed child support receive less than 70 percent of the amount they are due. This not only presents problems for those owed child support but also those required to pay support. While Chapter 13 bankruptcy can’t eliminate these necessary payments, it can help manage current and past due payments so one can avoid serious penalties.

Those dealing with this or any other family law issue should understand there are options to avoid post-divorce issues. It is possible to seek modifications or even petition to have them end. If there has been a substantial change in circumstances, it might be necessary to alter support obligations, requiring one to understand his or her legal options.