Bankruptcy and Child Support

Bankruptcy Affect on Child Support

Whether you’re receiving child support payments from someone who is set to file bankruptcy or you’re responsible for making child support payments, you may wonder what affect the bankruptcy process will have when it comes to receiving or making payments. The outcome of the process may vary depending on personal circumstances and the chapter that is filed

The automatic stay goes into effect when bankruptcy is filed and prevents most creditors from collecting payment from you. However, if back child support is owed, the stay doesn’t offer protection and you can still be pursued for the outstanding amount.

While bankruptcy doesn’t help you change payment arrangements originally set for child support, it could be a good time to have your agreement reviewed and modified with an attorney.  Modification of the agreement may help you get more affordable payments. Bankruptcy can help eliminate or reduce other debt obligations to make child support payments easier to make.  You may even be able to get caught up on child support payments sooner

If you are the one who receives payment for child support, you may wonder if the bankruptcy process will prevent you from receiving the payments. Usually, back child support is not dischargeable in Chapter 7 and it’s considered a priority debt in a Chapter 13 case. If Chapter 13 is filed, back child support payments would be a part of the repayment plan with payments likely to be made until the outstanding balance is satisfied.

Have Any More Questions About Bankruptcy and Child Support?

Questions and concerns should be reviewed with a qualified bankruptcy attorney you can contact us today to set up a free consultation.