Can Bankruptcy Help Me With Past Due Child Support?
Can Bankruptcy Help Me With Past Due Child Support?
The coronavirus has placed an economic strain on many Americans. During this especially difficult time, many faithful child support payers have lost their jobs and have fallen into significant arrears. It comes as no surprise then that parents in those situations are wondering if filing for bankruptcy can help. Here are a few helpful facts on how bankruptcy affects your child support, and what options you may have to get caught up on your payments.
Is Child Support Debt Dischargeable Through Bankruptcy?
The short answer is no. Federal law prohibits child support debt to be discharged through any of the forms of bankruptcy. In fact, in order for discharge to occur on any debt, your child support debt must first be satisfied. Child support debt is considered priority debt. And priority debt has been determined by the legislature to be too important to be wiped out through bankruptcy. However, filing for bankruptcy can allow other debts to be discharged, thereby freeing up your income to get caught up on your support payments.
Will Filing For Bankruptcy Put A Hold On Child Support Payments?
Generally speaking, bankruptcy (specifically Chapter 13) is a consolidation of debt which is then repaid through a payment plan. All of your support arrears that accumulated prior to filing bankruptcy will be included in your consolidated debt. The payments you make toward your consolidated debt will go toward your support arrears. However, if you have a running child support order (where the child is a minor), then you will still need to make your monthly child support payments.
It should be noted that Chapter 13 bankruptcy will protect you from separate legal actions to collect your pre-bankruptcy support arrears. Any party seeking to collect on your pre-bankruptcy arrears will first have to get permission from the bankruptcy judge handling your case. State law may affect how exactly your payments are made during bankruptcy. It is best to consult with an attorney in your home state to get legal advice on your current support obligations.
Can I Modify My Existing Child Support Payments During Bankruptcy?
Most states allow modification of an existing support order at any time or when there has been a material change in the obligor’s (payer) circumstance. While it is always best to consult with an attorney as different states have different rules, generally speaking bankruptcy will not affect a debtor’s right to modify an existing support order. However, the family court judge will most likely require court documents relating to your bankruptcy to be presented in making the decision on whether to modify your support payments.
What If My Child Turns 18 During The Bankruptcy Process?
Each state has different rules for emancipation (children becoming a legal adult) so it is advisable to consult your local family court or attorney for answers on this issue. However, it should be noted that bankruptcy only affects your child support arrears. Any running current support obligations still continue to be due and owing.
Florida Bankruptcy Attorneys
The attorneys and staff of The Bankruptcy Team have decades of combined experience helping clients with mortgage modifications, foreclosure defense and bankruptcy alternatives to effectively resolve their financial problems. If you are dealing with an unmanageable debt situation and are contemplating bankruptcy, reach out to The Bankruptcy Team to consult with one of our bankruptcy attorneys today.
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- Can Bankruptcy Help Me With Past Due Child Support? - May 29, 2020