Are Child Support Payments Protected in Bankruptcy?

If you are in financial trouble and considering bankruptcy, you will want to discuss your situation in detail with a qualified bankruptcy attorney. This is especially true if you are receiving child support or receiving child support.

Receiving Child Support

You will need to speak with your attorney in detail about how these payments will be viewed in bankruptcy. Be prepared to supply the court documents that go over the support information. This will help your attorney determine your options and be better able to explain how receiving child support will influence your bankruptcy.

Paying Child Support

If so, you may be wondering what happens to those payments if you file for bankruptcy. Bankruptcy does not get rid of your back-owed child support. This is because child support is considered a priority debt and cannot be discharged in bankruptcy. Priority debts are paid before unsecured debts. In most cases, child support will be paid before other priority debts like back taxes. Examples of unsecured debts are credit card debt and medical debt. However, bankruptcy will reduce or remove your other debts. This will make it easier to keep up with your child support payments.

You should understand that family law will vary depending on the state in which you reside. Before filing, be sure to discuss all of your options with your attorney and how each option will affect your finances and child support obligations.

With any bankruptcy filing, the automatic stay will stop creditors from contacting you about your debt. However, this is not the case for your child support obligations. In a Chapter 7, these payments are not considered part of the bankruptcy estate. Meaning, you will need to continue paying child support during the bankruptcy as well as any child support arrears. However, if you file for Chapter 13 you can get help getting caught up with child support, while getting your other unsecured debt discharged once the bankruptcy is complete. Speak with your attorney to see if there are options for modification as well.

Interest and Child Support Payments

Any interest accrued on child support arrears will not be discharged in your bankruptcy. If any interest is accrued, it will be paid outside of your Chapter 7 case or through the Chapter 13 Plan Payments.

Looking For More Information?

At the Law Office of Daniela Romero, we believe in relationships that are based on trust. Before we work together, we would like to get to know you and we would like you to get to know us. We want you to be sure you are the right fit for us and that we are the perfect fit for you. This will allow you to be completely comfortable sharing intimate and difficult details of your case, so we can offer you representation to the fullest extent of the law. Call us today to set up a free consultation.