Bankruptcy is often used by a party, or parties, to help discharge debts which are proving to be exceptionally burdensome. In fact, bankruptcy can be a great way to help get yourself out from under a pile of crushing debt and finally get your financial feet under you once again. While not a dream scenario, bankruptcy may be a person’s best-bet on the road to financial recovery. But, how does bankruptcy affect other issues, such as child support payments? Here’s everything you need to know about child support and bankruptcy.
Paying Child Support
If you are subject to child support payments, filing for bankruptcy does not mean that these obligations vanish. Any previous obligations not met, as well as any current or future child support payment obligations may still be required by the court. Federal bankruptcy law states explicitly that child support and alimony obligations cannot be discharged through either Chapter 7 or Chapter 13 bankruptcy filings.
The act of filing for bankruptcy protection, however, may make other avenues of alleviating child support payments. The very need to file for bankruptcy indicates that there is likely a change in the financial situation of the parent required to pay alimony or child support. Because of this, they may be able to have their current child symport or alimony order modified in order to facilitate a fair and effective payment plan.
Chapter 13 Bankruptcy Protection and Child Support
If you find yourself behind on child support, Chapter 13 bankruptcy may be your best opportunity to get caught up on your owed payments. Because of the requirements of filing for Chapter 13 protections, all back payments are required to be made before the bankruptcy repayment plan can be fully discharged. This allows an individual to catch up on delinquent child support payments, while also reducing any arrears owed to other unsecured creditors.
Receiving Child Support
If you file for bankruptcy but are currently receiving child support payments from your ex-spouse, you can protect these payments during your bankruptcy proceedings. Federal bankruptcy law provides an exemption for financial “support” received, of which alimony and child support payments are included. This means that any support you receive will be protected from the trustee of the bankruptcy.
Work with the Largest Bankruptcy Lawyer in Florida
At the Law Offices of Patrick L. Cordero, we are proud to be the largest bankruptcy law firm in the entire State of Florida. Offering personalized attention to every client, we understand that your situation is unique. If you are considering applying for bankruptcy protection, regardless of the type, having an experienced attorney on your side can go a long way.
Trust the Lawyer of the Decade, the Minority Lawyer of the Year, and the Largest Bankruptcy Firm in Florida and we’ll work to get you the best financial outcome possible. Trust in the experienced and passionate legal team at The Law Offices of Patrick L. Cordero to help you. Call for a free, no-risk consultation today at 305-445-4855.