Child support orders are issued by courts to ensure that both parents continue financially contributing to their child’s upbringing, regardless of their relationship status. These support obligations are crucial to protect the child and ensure that they are financially secure. When a parent falls behind, it can have various consequences. If you’re planning to file for bankruptcy, you may be wondering whether being behind on child support can impact your legal rights and options. Continue reading and consult with a skilled Memphis, TN debt relief lawyer for more information today.
Can I File for Bankruptcy if I’m Behind on Child Support?
Yes, you can still file for bankruptcy even if you are behind on your child support payments. There is no restriction within the U.S. bankruptcy code that prevents an individual from filing for bankruptcy protection due to outstanding support obligations, so you are still legally eligible to seek relief. In many cases, individuals choose to file because the combined pressure of child support and other debts has become unmanageable.
Will Bankruptcy Eliminate Child Support Debt?
It is a common misconception that filing for bankruptcy will wipe out all financial liabilities, including overdue child support. However, under the U.S. Bankruptcy Code, child support is classified as a Domestic Support Obligation (DSO). Unlike unsecured debts such as credit card balances or medical bills, DSOs are non-dischargeable. This means that filing for bankruptcy cannot eliminate or reduce your child support debt. This is true for both Chapter 7 and Chapter 13 bankruptcies.
Regardless of which chapter you file, you will still be legally obligated to pay the full amount of any past-due child support or arrears that accumulated before and during your filing for bankruptcy.
How Will Child Support Debts Be Handled?
The automatic stay is a protection that activates as soon as an individual files for bankruptcy and requires creditors to halt collection efforts. Although bankruptcy’s automatic stay stops many collection efforts, federal law creates several exceptions for child support enforcement. As a result, actions such as wage withholding, tax refund interception, and certain family court proceedings may continue despite the bankruptcy filing.
How Do Chapter 7 and Chapter 13 Differ?
In a Chapter 7 case, also known as liquidation bankruptcy, child support debts will remain after the bankruptcy concludes. You will still be on the hook for the total amount of unpaid support. The same is true for Chapter 13, but the repayment plan aspect may be beneficial.
If you file under Chapter 13, you must include all pre-filing child support arrears in your court-approved repayment plan and stay current on all ongoing support payments throughout the process. Child support is a priority obligation, and failing to pay could jeopardize your entire bankruptcy case.
Contact a Bankruptcy Lawyer Today
While bankruptcy cannot discharge child support debt, it may help you manage your financial obligations by eliminating other types of debt, which could potentially free up income to prioritize your support payments. Because these laws are complex, it is highly recommended that you consult with an experienced bankruptcy attorney to discuss your specific circumstances. Reach out to a legal professional at the Arnold Law Firm today.
