Your bankruptcy client, Ben Esway, has failed to pay court-ordered child support of $450.00 per month to his wife, English Stich, for a period of 12 months. Esway just filed for bankruptcy under Chapter 7 and has called the office to find out whether his former wife can garnish his wages. She keeps threatening him every time they exchange the children during visitation, but this time he thinks
she will follow through. He can barely make ends meet as it is now. Does any exception to the Automatic Stay apply in Mr. Esway's case? Explain your answer and reasoning below.
What will be an ideal response?
Child and spousal support are often collected through wage garnishment and seizure of tax refunds. When the debtor has filed for bankruptcy under Chapter 7 liquidation, collection of child and spousal support is not affected by the Automatic Stay; however, these sums may be subjected to a reorganization under Chapter 13.
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A. True B. False
A buyer can revoke an acceptance if there is substantial impairment of the value of the goods.
Answer the following statement true (T) or false (F)