There’s no getting out of paying child support arrears when you file for bankruptcy. Child support is a non-dischargeable debt. Missed payments can quickly spiral out of control and lead to financial distress, potentially resulting in bankruptcy. Here’s what you need to know.
What Can You Do
You can get your finances back on track to help you meet child support obligations. Bankruptcy eliminates your other creditors and leaves you with money to pay those back payments. It gives you the chance to manage your debts and financial responsibilities, making it easier to meet your child support payments.
Automatic Stay is a statutory injunction that takes effect the moment a person files for bankruptcy. It immediately stops most collection efforts by creditors. It provides a period of temporary financial relief, allowing the bankruptcy court time to find a resolution.
Chapter 13 Child Support Payments
Under Chapter 13 bankruptcy, child support obligations must be paid in full within a period of time. The payments are based on your disposable income, allowing you to pay what you can afford during the repayment period, which is usually 3-5 years. This type of bankruptcy avoids garnishment of your wages to pay off overdue child support.
Chapter 7 Child Support Payments
Filing for Chapter 7 bankruptcy doesn’t erase your child support obligations. Any funds or assets collected after your bankruptcy filing are fair game for child support seekers. However, filing for bankruptcy can free up more income to allow you to catch up on past-due payments.
The Law Office of Todd Cushner & Associates, located in White Plains, NY, helps families and small businesses understand bankruptcy and how they can be protected. Our attorneys can help make the process easy and painless. Call us today at 914-600-5502 or contact us online.
