Can I File Bankruptcy if I Owe Past Due Child Support?

Parenting can be a financial rollercoaster, with unexpected expenses popping up at every turn. For many parents, past due child support adds another layer of stress, impacting both mental well-being and financial stability. But what if filing for bankruptcy could provide some relief? Let’s explore the options available to you.

Understanding Bankruptcy

Bankruptcy is a legal process meant to help people eliminate or repay their debts under the protection of the law. It’s often seen as a last resort but can offer a fresh start for people with too many financial obligations. The two main types of bankruptcy are:

• Chapter 7 Bankruptcy: This involves selling off non-exempt assets to pay creditors. Certain debts are discharged, offering relief from overwhelming financial burdens.
• Chapter 13 Bankruptcy: Known as “reorganization bankruptcy,” it allows individuals to keep their assets while repaying debts over a three to five-year period through a court-approved plan.

Bankruptcy and Child Support Obligations

When it comes to child support, bankruptcy laws are clear: you cannot discharge past-due child support obligations through bankruptcy. Child support is considered a priority and will not be eliminated by filing for bankruptcy. Therefore, if you owe past due child support, it must still be paid even after your bankruptcy case is concluded.

However…

While past due child support cannot be discharged through bankruptcy, filing for bankruptcy can still help in other ways. If you’re struggling with overwhelming debt, including credit card debts or medical bills, Chapter 7 bankruptcy may allow you to free up some funds to meet your ongoing child support obligations. By eliminating these other debts, you can redirect that money towards paying off your child support arrears. Additionally, Chapter 13 bankruptcy may give you more time to catch up on past-due child support payments by restructuring your debt and providing a manageable repayment plan.

Exploring Your Options

Before filing for bankruptcy, it’s crucial to understand all your options. You may want to consider seeking a modification of your child support order if you’re facing financial difficulties. In some cases, the court may be willing to adjust the payment amount based on changes in income or expenses. You can also explore other debt relief solutions, such as debt consolidation or negotiating with creditors for reduced balances. It’s essential to consult a qualified bankruptcy attorney who can guide you through the process and help you make an informed decision.

Your Responsibilities if You Do File

If you decide to file for bankruptcy, staying on top of your child support payments will be critical. Failure to keep up with these payments can result in severe consequences, including wage garnishment, driver’s license suspension, and even jail time. Child support obligations are non-negotiable and are treated with the highest priority by the courts. Moreover, staying current on these payments can positively impact your bankruptcy case, demonstrating your commitment to fulfilling your financial responsibilities.

The Bottom Line

If you owe past due child support, filing for bankruptcy will not eliminate that obligation. However, depending on your specific situation, bankruptcy may still provide some relief by freeing up funds or extending the timeline for repayment. It’s crucial to carefully consider all your options and speak with a professional before making any decisions.

At Whitten & Whitten, we understand that finances can be overwhelming, especially when children are involved. Our team of experienced bankruptcy attorneys is here to provide you with the guidance and support you need to make informed decisions about your financial future. Reach out to us today for a comprehensive evaluation and learn how we can help you regain financial stability while fulfilling your child support obligations.