Child Support And Bankruptcy—5 Things To Know

20 July 2022 by Jonathan Phillips

Many who declare bankruptcy have a variety of different forms of debt. If yours includes child support, and—more importantly—old child support, can bankruptcy help you? In fact, it can. However, this may not always be the way you expect it to work. To help you get the most relief and still support your children, here are a few important things to know about child support and bankruptcy claims. 

1. Child Support Isn't Discharged. The first thing to understand about filing bankruptcy is what it will or will not reduce. You can get rid of many types of debt, including secured and unsecured civil debt and even taxes. However, child support is generally not eligible in either of the most common chapters of bankruptcy. 

2. You Get Caught Up With Chapter 13. Chapter 13 bankruptcy is known as repayment plan bankruptcy or wage earner's bankruptcy. You develop a three- to five-year plan to repay as much of your unsecured debt as possible. How does this help child support? In general, your child support obligation becomes part of your payment plans. This often makes it more manageable to pay not only current obligations but to bring your arrears up-to-date. 

3. Chapter 7 Frees Up Money. Want to file the faster and simpler Chapter 7, or liquidation, bankruptcy? While child support won't be discharged, you do get significant relief from other bills. Consider how your finances could be if you had no credit card debt, reduced tax debt, or no payday loans? Freeing up space in the monthly budget allows you to focus on child support and remaining debts. 

4. Collections May or May Not Continue. The automatic stay is one of the most important bankruptcy benefits. This stay prevents most creditors from attempting any further collections efforts for as long as it's in effect. This, however, may or may not apply to child support. The ability of the recipient to try to collect on past-due child support depends on the bankruptcy chapter you choose and other factors.

5. Fixing Child Support Helps Discharge. If you choose a repayment plan, you'll need to get current on child support before the plan is complete. Doing so allows the court to permanently discharge the remaining eligible debt. So, when you design your payment plan, be sure you craft it in a way that gets you right with the child support rules and therefore maximizes discharge. 

Where to Start

Want to know more about child support, arrears, chapters of bankruptcy, and the options in your state? Start by meeting with a bankruptcy lawyer in your state today. 

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