Asked by Daniel Mordehai on Jul 09, 2024
Verified
Under the new Bankruptcy Code,alimony,child support,and Social Security payments are exempt up to an aggregate of $25,000 per year.
Bankruptcy Code
The set of federal statutes that govern the process of legal declaration of a person or corporation's inability to pay debts.
Alimony
Financial support paid by one former spouse to another after divorce or separation, intended to provide for the recipient's needs.
Child Support
Child support refers to periodic payments made by a parent for the financial benefit of a child following the end of a marriage or other relationship, aimed at covering living expenses and needs of the child.
- Grasp the specifics of exemptions and protections offered to debtors in bankruptcy.
Verified Answer
AT
Anthony TuggleJul 10, 2024
Final Answer :
False
Explanation :
Alimony, child support, and Social Security payments are generally considered exempt without a specific aggregate limit under the U.S. Bankruptcy Code, meaning they are protected from being used to pay off most debts in bankruptcy. The exemption is not capped at $25,000 per year.
Learning Objectives
- Grasp the specifics of exemptions and protections offered to debtors in bankruptcy.