Child support is one of those debts. Other non-dischargeable debts include student loans, taxes, and other government fees. Child support and other domestic support obligations are priority debts. Priority debts are debts that Congress has decided to give special status in a bankruptcy case. Priority debts are paid first before any other creditors. How these debts are handled works differently in a Chapter 13 and Chapter 7 bankruptcy.
In a Chapter 13 bankruptcy, child support arrears must be addressed in the payment plan. In Chapter 13 cases the debtor must propose to pay all priority debts in full. Chapter 7 cases work differently since there is no payment plan. If there are nonexempt assets available to pay creditors, priority debts get paid first. In a Chapter 7 bankruptcy child support arrears are not discharged and must be dealt with after the bankruptcy. The good news is that filing a bankruptcy can eliminate your other debt and free up your budget and income to allow you to make payments.
You may also be wondering how filing a bankruptcy will impact your child support obligations going forward. You will need to continue making child support payments during your bankruptcy and going forward. While child support cannot be discharged, a bankruptcy can still provide relief. Filing bankruptcy can clear your other debts, freeing up funds to make child support payments.
If you are dealing with an overwhelming debt problem, it is important to discuss your options with a bankruptcy attorney. If you have questions about bankruptcy and would like to do a free consultation to go over your options, visit www.lifebacklaw.com to speak with an attorney. You will be glad you did!