There Are Ways To Deal With Child Support Arrears In Bankruptcy

Handling child support arrears in a bankruptcy case requires careful consideration, as child support obligations are treated with high priority under bankruptcy law. Here are steps and considerations for dealing with child support arrears during bankruptcy:

1. Understand the Non-Dischargeability of Child Support:

First and foremost, recognize that child support arrears cannot be discharged in bankruptcy. Both Chapter 7 and Chapter 13 bankruptcy treat child support as a priority debt, meaning it must be paid in full and receives preferential treatment over other types of debts.

2. Chapter 7 Bankruptcy:

• No Discharge for Arrears: In a Chapter 7 bankruptcy, while you can eliminate many types of unsecured debts, child support arrears are not dischargeable.
• Asset Liquidation: If you have non-exempt assets in a Chapter 7 case, the bankruptcy trustee can liquidate these assets to pay off your debts, with priority debts like child support arrears being paid first.
• Continued Obligation: You will continue to owe any child support arrears even after the discharge of other debts in Chapter 7 bankruptcy.

3. Chapter 13 Bankruptcy:

• Repayment Plan: Chapter 13 allows you to include child support arrears in your repayment plan, giving you the opportunity to spread these payments out over the term of the plan (3 to 5 years).
• Priority Treatment: Child support arrears must be paid in full through the Chapter 13 plan as they are considered priority debts.
• Automatic Stay: While the automatic stay in Chapter 13 can stop most collection actions, it does not prevent the collection of ongoing child support obligations. However, it can help manage the arrears.

4. Communicate with the Child Support Agency:

• Proactively communicate with the child support enforcement agency and the recipient of the support. Keeping them informed about your bankruptcy filing and your intentions to address the arrears can sometimes lead to more cooperative arrangements.

5. Legal Advice:

• Consult with a bankruptcy attorney who has experience in dealing with child support issues. They can provide guidance tailored to your situation and help you understand how your bankruptcy filing will impact your child support obligations.

6. Post-Bankruptcy Planning:

• Develop a budget and financial plan to ensure you can meet your ongoing child support obligations after bankruptcy. Staying current with new child support payments is crucial to avoid further legal complications.

7. Consider Modification:

• If your financial situation has changed significantly, consider seeking a modification of the child support order in family court. While this won’t reduce the arrears, it can help make future payments more manageable.

While bankruptcy can provide relief from many types of debts, it does not eliminate child support arrears. Using Chapter 13 to manage and pay off these arrears over time is often the best strategy. Regardless of the bankruptcy chapter, it’s vital to prioritize child support payments and arrears to avoid additional legal issues and to ensure compliance with court orders. Legal advice from a qualified attorney can provide crucial guidance and help navigate the complexities of bankruptcy and child support obligations.

Child Support