When couples in Kentucky go through a divorce, one party will likely pay child support to the other. Though the courts typically make sure the payments are set to an amount the non-custodial parent can pay, unexpected financial challenges can lead to them being unable to make ends meet. As such, the paying party may declare bankruptcy in hopes to find debt relief. But how does declaring bankruptcy affect child support?
Discharge of student loans in bankruptcy complicated…and rare
Student loans have traditionally not been viewed as a dischargeable debt in bankruptcy courts. But as more students borrow more money to further their educations while the unemployment rate has risen, courts have begun to look at individual circumstances to determine whether student loan debt should be forgiven in light of the borrower’s total circumstances. As further guidance to bankruptcy courts, the United States Department of Education recently released new guidelines addressing criteria for making these decisions.
How private is information disclosed in a personal bankruptcy?
Identity theft is on the rise as more information is contained in computer databases, easily accessible to experienced hackers. The U.S. Bureau of Justice Statistics reports that about seven percent of people in the U.S. who were 16 or older reported some form of identity theft in 2012. Many people may be reluctant to fill out bankruptcy documents because of the amount and nature of personal and financial information that is required to complete the filing process.
