Although filing for Chapter 13 bankruptcy won't release you
from your debts, it can help you catch up. Though it won't relieve you of your
past-due child support obligations, filing for Chapter 13 bankruptcy can help
you catch up. Keep in mind that even though you are in Chapter 13, you must
continue to pay child support. Continue reading to find out more about how
Chapter 13 bankruptcy handles child support obligations.
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Child Support Obligations Are Not Eliminated by a Chapter 13 Discharge
Congress has determined that the debt associated with child
support is too significant to be erased in bankruptcy because the American
public views child support as a very serious responsibility. Your child support
obligation is therefore classified as a priority debt in Chapter 13 bankruptcy,
meaning that it cannot be discharged. In fact, as part of your Chapter 13
repayment plan, you must fully pay off any unpaid child support arrears (which
can last from three to five years). Some unsecured creditors, including credit
card companies, may get less money after paying off past-due child support, but
the debtor should not worry about this because any remaining obligation will be
erased.
If You File For Chapter 13 Bankruptcy, You Can Make Up Missed Child Support Payments
Any pre-bankruptcy child support arrears must be included
and satisfied as part of your Chapter 13 plan. The ability to organize your
obligations and repay some or all of them through a practical repayment plan
that can last as long as three to five years. You must make provisions for the
repayment of all past-due child support over the course of the plan since we
place a high value on it.
You Must Continue To Make Child Support Payments As They Become Due
Furthermore, your pre-bankruptcy child support arrears can
only be cured through your Chapter 13 plan. During your lawsuit, you must
continue to make your normal child support payments. If you stop paying child
support during your Chapter 13 bankruptcy, the court will usually lift the stay
and enable the creditor to pursue your wages, even though they are property of
the bankruptcy estate.
If you are experiencing difficulty making both your regular
child support payments and your Chapter 13 repayment plan, contact your
attorney or your state child support agency to see if you can alter your child
support obligations.
You Must Demonstrate a Change in Circumstances, Such As Losing Your Job or Being Unwell and Unable To Work
To be eligible for a discharge, you must be current on your
child support payments. You must demonstrate that you are current on all of
your domestic support obligations, including child support, before you can
receive a Chapter 13 release. As a result, if you skipped any child support
payments throughout your case, you must repay them before receiving your
discharge.
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Consult a Bankruptcy Attorney
If you're thinking about filing for bankruptcy and owing child support, consult with a Bankruptcy Professional in Columbus, GA. The lawyer will be able to clarify your alternatives to you and assist you in making the best decision for you.
