Can You File Bankruptcy on Child Support?
Sometimes, your bills and debts pile up, and there’s no way for you to get out from underneath them. Bankruptcy offers you a second chance by eliminating some of your debt and giving you a fresh start. One debt you might have is child support. You might be past due and in arrears on your child support payment. One of the questions you want answered is, “Can you file bankruptcy on child support?” Here’s everything you need to know.
Understanding Child Support in Bankruptcy
Bankruptcy can be used to lower and eliminate a range of debts when a person no longer has the means to pay the debts. Child support is a non-dischargeable debt. Other non-chargeable debt includes student loans, taxes, and other government fees. You need to continue to make your child support payments during your bankruptcy. However, as your other debts are cleared, you should be able to make the payments more easily.
Impact of Bankruptcy on Child Support Arrears
If you’re in arrears on child support payments when you file bankruptcy, you’re still responsible for these debts. Chapter 13 bankruptcy requires that any amount of child support arrears be addressed in the plan. After filing for Chapter 7 bankruptcy, you are not protected from debt collectors or lawsuits attempting to recover child support arrears. The good news is that filing for bankruptcy can take the pressure off your budget and free up more income to allow you to make these past-due payments and catch up. Moving forward after bankruptcy, the lack of debt should allow you to keep current on your weekly or monthly payments.
Child Support and Chapter 7 Bankruptcy
Chapter 7 bankruptcy allows for liquidating all non-exempt assets to pay the debts owed. There are some exemptions, such as some insurance benefits, personal property, and homestead. The person filing Chapter 7 doesn’t need to file a repayment plan. Once any non-exempt assets are liquidated and payments are made on the debt, many debts are forgiven. However, child support isn’t one of the debts that can be forgiven. You can still get calls, liens, and judgments for late child support payments.
Child Support and Chapter 13 Bankruptcy
If you have a regular income, Chapter 13 bankruptcy provides you with the opportunity to restructure your debt so you can afford to make all the necessary payments. As with all forms of bankruptcy, you can’t declare bankruptcy on your child support payments. However, the restructured payment schedule of your debt takes into account these payments, so you have the income available to pay all your debts.
Choosing Between Chapter 7 and Chapter 13
Choosing between filing Chapter 7 or Chapter 13 bankruptcy can be a challenge. If you don’t have many assets or a reliable income, Chapter 7 might be the best option. These cases are usually completed in three to five months. However, when you have non-exempt property you might decide to file Chapter 13, which allows you to pay plan payments over three to five years.
Contact an Experienced Bankruptcy Lawyer Today
While bankruptcy may somewhat impact child support, it doesn’t erase the amount you owe. It gives you the breathing room you need to catch up on payments. Contact one of our bankruptcy attorneys today for more information. Sasser Law Firm has extensive experience in bankruptcy cases and believes in customer satisfaction.
Call us today for a free consultation at (919) 319-7400.
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For more than 20 years, the Sasser Law Firm has been helping individuals and business owners sort through financial hardships to see the light at the end of the tunnel. Our North Carolina bankruptcy attorneys are all board-certified specialists, which means we have passed a complex exam, undergone a thorough peer review, and continue to earn legal education credits in this ever-evolving area of law.
