The Impact Bankruptcy has on Children
Families who are considering filing for bankruptcy in Texas often think how the decision will impact their children. Of course, there will be some psychological effects on them because of the nature of the situation. But just as importantly, families want to ensure they will still have enough money left to support their children. There are some definite pros and cons when it comes to filing for bankruptcy with children, and Texas bankruptcy lawyers can bring some clarity to every situation.
What Happens To Your Child’s Property
For the purposes of a bankruptcy proceeding, everything you’ve purchased for your child is considered to be owned by you. The only exception would be if you could prove your child made the purchase with their own funds, either by having a job or inheriting a sum of money in any way. The good news is the majority of personal household property is exempt anyway, but this could vary depending on the age of the child and the assets owned.
Child Support Funds
A Chapter 7 bankruptcy attorney has to take a long look at all of your accounts to determine what is exempt and what isn’t. Child support funds are generally untouchable during a bankruptcy case, but you have to prove somehow that the funds are indeed used for child support. Your Chapter 7 bankruptcy attorney can quickly tell you how to protect yourself in this situation.
Money For School
Every area in Houston is different when it comes to the amount of money each household is allowed per child in a bankruptcy case. Money for school tuition is protected, but anything over the specific amount set may be fair game. If you have a child in college, you likely won’t be able to personally take out a school loan for them, but the student can still apply for and receive loans on their own.
Speak With A Bankruptcy Attorney First
It’s important to speak with Texas bankruptcy lawyers prior to making the decision to file for bankruptcy. Your children should be one of your main concerns before filing, so you can avoid putting their well-being in harm’s way. The benefit of speaking with a bankruptcy attorney is they can anticipate any current and future problems that you may not think of or know of yourself. When it comes to your children, you can never be too cautious or know too much information.
Bryeans & Garcia, PLLC works with families every day who are concerned about the impact bankruptcy will have on their children. You can rest easy knowing our Texas bankruptcy lawyers are behind you every step of the way and will always have the best interest of your children in mind. To schedule a free consultation at our Houston or Ft. Worth office to discuss your situation, contact us today.