Child Support And Alimony In Bankruptcy

Published on August 18, 2020 by J. Andrew Meyer

Child Support And Alimony In Bankruptcy

With divorce rates on the rise, more and more people are facing the prospect of paying child support or alimony to a former partner. As these obligations are usually based on income, if you are experiencing a financial decline through loss of employment or unexpected expenses, it may be difficult or even impossible to continue to pay them. People facing serious financial problems often look to bankruptcy for a fresh start and for a reorganization of their finances. Depending on your specific location and financial situation, bankruptcy may be able to help you manage both your child support and alimony payments. Let’s take a closer look at some facts surrounding how bankruptcy can affect child support and alimony.

Child Support

Before discussing how bankruptcy can affect child support, it is first necessary to describe the difference between a current running child support obligation and child support arrears. A current running child support obligation typically involves monthly payments to a custodial parent for the care of a child who is still a minor. These payments generally cannot be suspended or terminated through bankruptcy. Child support arrears are unpaid back child support payments. Put more simply, child support arrears are missed or backdated child support payments that have not been paid.

Child support arrears cannot be discharged through bankruptcy, but they may be included in a Chapter 13 repayment plan. Additionally, filing for bankruptcy may put a hold on any separate legal action to collect the unpaid arrears. Perhaps the most helpful way bankruptcy can affect child support is through the discharge of other debts. This may have the effect of freeing up your income, in turn allowing you to pay your child support obligation.

Alimony

Similar to child support, alimony payments generally cannot be discharged through bankruptcy. However, there are two notable exceptions to this rule. One is when alimony payments are not in fact alimony payments. Often times, divorce decrees specify that a payment be made from one spouse to another for a specified debt but where this is somehow labeled as alimony. In these cases, filing bankruptcy may entitle you to discharge the alimony debt as it is essentially a separate debt that is being disguised as alimony payments. Another example is third party assignment. Third party assignment of alimony payments is when a spouse who is receiving alimony payments assigns the right to collect the obligation to a third party. An example of this would be an ex-wife assigning her alimony payments to a creditor. Under this scenario, filing for bankruptcy may allow for a discharge of the obligation as it is now treated as merely unsecured debt and not a domestic relations obligation.

Final Thoughts

It is important to remember that most jurisdictions allow for modification of child support and alimony payments if you are experiencing a financial hardship. Filing for bankruptcy and providing the domestic relations court with proof of your financial situation may help in lowering your continuing child support or alimony payments. If you are considering filing for bankruptcy and have current support obligations, it is recommended that you consult with an experienced attorney who can help guide and instruct you on the best course of action for your particular situation.

Florida Bankruptcy Attorneys

The Bankruptcy Team, PLLC is devoted to helping clients resolve their financial issues through bankruptcy, foreclosure or other viable means so that they are able to get a much needed fresh start. Whether you are considering filing for bankruptcy, modifying your mortgage, or are facing unmanageable credit card or student loan debt, we are here for you. Our experienced attorneys will thoroughly review your situation with you and then position solutions that are tailored to your needs. To consult with The Bankruptcy Team, PLLC, call or contact us today.

J. Andrew Meyer

Andrew Meyer was born in Deland, Florida, in 1970. He graduated with an International Baccalaureate Degree from St. Petersburg High School in 1988, and attended the University of Florida, graduating in 1991 with a degree in Economics awarded with High Honors. Mr. Meyer also attended law school at the University of Florida, receiving his juris doctorate degree in 1995. While at the University of Florida, Mr. Meyer was inducted into Florida Blue Key and Phi Beta Kappa. Mr. Meyer was first trained as a lawyer by Richard T. Earle, Jr., and thereafter worked at the Attorney General's Office for the State of Florida in the Bureau of Criminal Appeals before becoming a senior staff attorney for the Florida Second District Court of Appeal. Mr. Meyer also served as a law clerk to the Honorable Chris W. Altenbernd, Retired, at the Second District Court of Appeal. Following his time at the Second DCA, Mr. Meyer worked at Carlton Fields, focusing his practice on appellate matters. In 2004, Mr. Meyer became an advocate for consumers as a partner at James Hoyer, and then later moved to Morgan & Morgan's class action department in 2009.

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Child Support And Alimony In Bankruptcy