Filing for Chapter 13 bankruptcy does not eliminate your responsibility to pay child support. While Chapter 13 can help reorganize your debts and possibly reduce some financial obligations, child support and other domestic support obligations (like spousal support) are considered priority debts.
This means that they are not dischargeable in bankruptcy and must be paid in full throughout your bankruptcy plan.
Child support, along with alimony and certain other domestic support obligations, cannot be discharged through bankruptcy, whether it is Chapter 7 or Chapter 13. Even after filing for bankruptcy, these payments are still due and can be collected by the recipient.
Yes, a Chapter 13 bankruptcy can assist in the repayment of overdue child support payments. This type of bankruptcy allows for the creation of a child support payment plan to pay off debts over a period of three to five years. Back child support, being a priority debt, must be included in this plan and paid in full during the term of the plan.
While filing for bankruptcy typically triggers an “automatic stay” which prevents creditors from pursuing collection activities, this stay does not apply to child support or alimony obligations. This means that despite filing for bankruptcy, you are still obligated to make ongoing child support payments, and enforcement actions for these payments can still proceed.
An automatic stay is a provision within the U.S. Bankruptcy Code that temporarily halts certain proceedings and collection activities against the debtor immediately upon the filing of a bankruptcy petition. It’s like hitting a pause button on most efforts to collect debts from you. This is designed to give the debtor breathing room to develop a repayment plan or pursue other options for resolving their financial issues.
For instance, if a creditor is about to foreclose on your home, repossess your car, or cut off your utilities, filing for bankruptcy would automatically stay or halt these actions. This can give you time to catch up on payments or renegotiate the terms of your loans.
The automatic stay, as a concept, has been a part of bankruptcy law in the U.S. for many decades. It has its roots in the equitable powers of bankruptcy courts and reflects a key goal of bankruptcy, which is to give the debtor relief from the pressures of dealing with aggressive creditors. Over time, it has been codified and expanded in the U.S. Bankruptcy Code to cover a wide range of collection activities.
Enforcement action is a term used to describe the steps a creditor may take to collect a debt that a debtor has not paid. In the context of child support, these actions can be taken by a state child support enforcement agency or by the custodial parent (the person to whom child support is owed).
Enforcement actions can include:
Consider Jane, a single mother who has custody of her two children. Her ex-husband, Mark, has fallen behind on his child support payments. Despite Mark filing for bankruptcy, the automatic stay provision does not halt the enforcement actions Jane can take to collect the child support owed.
If Mark continues to miss payments, Jane can seek assistance from the state child support enforcement agency. They could help Jane take enforcement actions, like garnishing Mark’s wages, so a portion of his income would be automatically deducted and given to Jane for child support. They could also place a lien on Mark’s property, meaning when he sells the property, the overdue child support would be paid from the proceeds before Mark receives any money. If Mark still does not pay, he might even face jail time for failing to fulfill his child support obligations.
In all these cases, it’s advisable for both parties to seek legal counsel. A lawyer can provide guidance tailored to their situations, helping them understand their rights, obligations, and the potential consequences of different actions. LegalMatch can assist in finding a lawyer in cases like these.
Before you can receive a discharge in Chapter 13 bankruptcy, you must certify that you are up to date on all child support and alimony payments. If you have outstanding child support or alimony payments, you will need to repay these in full before you can receive a discharge of your remaining debts.
Let’s consider the case of John, a divorced father of two, who has been struggling financially due to a recent job loss. He has child support obligations of $500 per month, and after several challenging months, he decides to file for Chapter 13 bankruptcy to manage his debts.
To determine whether he is up-to-date on his child support payments, John needs to do the following:
In this scenario, let’s say John finds that he is three months behind on his child support payments, leading to arrears of $1500. Before he can receive a discharge through his Chapter 13 bankruptcy, he will need to ensure these arrears are paid in full, in addition to keeping up with his ongoing monthly child support payments. His bankruptcy repayment plan can help manage this, as it will include these arrears as a priority debt, spreading the repayment over the life of the bankruptcy plan.
John should seek legal advice when dealing with these complex issues. A lawyer experienced in family and bankruptcy law can provide guidance tailored to his situation and help him navigate through the process. LegalMatch can assist in finding such a lawyer.
During the bankruptcy process, if you find it difficult to meet your child support obligations, you may have the option to modify your child support. It’s essential to consult with a family law attorney to understand the legal requirements and procedures for modifying child support. Keep in mind that child support modification is typically handled outside of the bankruptcy court, so it’s crucial to address it separately from your bankruptcy proceedings.
In certain exceptional circumstances, it may be possible to seek a waiver for child support obligations. However, obtaining a waiver is often challenging and requires compelling reasons. The court will carefully review the circumstances and consider factors such as extreme financial hardship or a change in the child’s needs.
Navigating the intersection of child support and bankruptcy law can be complex. If you’re considering filing for bankruptcy and have child support obligations, it may be wise to consult with a knowledgeable child support lawyer. They can guide you through the process, help you understand your obligations, and ensure you’re taking the best steps to protect your interests.
LegalMatch can assist you in finding a qualified lawyer in your area who has experience in these matters. Don’t wait. Use LegalMatch today.
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