Child support may be one of your biggest concerns if you are considering bankruptcy. Many people file for bankruptcy because they cannot keep up with credit cards, medical bills or other debts. A common question is whether bankruptcy will affect the support they pay or the support they still owe.
In most cases, bankruptcy will not erase child support debt. Federal bankruptcy law gives child support special protection because the payments help meet a child’s basic needs.
Child support generally cannot be erased in bankruptcy
Filing for bankruptcy usually will not change what you owe in child support. The following child support obligations generally remain in place after a bankruptcy case ends:
- Making current child support payments under a court order
- Owing past-due child support, also called arrears
- Paying interest that has accrued on unpaid support
- Satisfying support obligations that arose in a divorce case
Even if you qualify for Chapter 7 bankruptcy, you will usually remain responsible for child support after your bankruptcy case ends. Financial hardship by itself does not discharge child support debt.
Child support collection continues
Many collection activities pause when someone files for bankruptcy because of a legal protection called the automatic stay. Child support is an important exception. Filing for bankruptcy generally does not stop a parent’s duty to make current child support payments.
Certain child support collection measures may continue during a bankruptcy case. These measures can include income withholding, intercepting tax refunds for past-due support and reporting overdue support to credit reporting agencies. In some situations, restrictions on driver’s licenses and certain professional licenses may also remain available to enforce child support obligations.
Bankruptcy and child support involve different rules
Bankruptcy and child support serve different purposes under the law. Bankruptcy can address certain types of debt, while child support obligations generally remain in place. As a result, someone may complete a bankruptcy case and still owe current or past-due child support.
Because both issues can affect the same household finances, people who face debt and child support obligations often need to consider how the two systems interact.