Many parents strive to provide unduly for their children, especially financially, in pursuing their children’s well-being, but some may have challenges in doing so. For instance, a parent with enormous debts who has reached the limit of what they can endure or hope to repay may wish to discharge their debts through bankruptcy.
But, if you are a parent who owes child maintenance and thinks of filing for bankruptcy in Orlando, or if the parent who pays you support maintenance needs bankruptcy protection, you should be informed about how the bankruptcy proceedings would affect the child support maintenance order.
There are several ways to debt out a person who files a case under bankruptcy law. However, none of the procedures would cancel child support debts issued by court order or agreed upon by both parties. It is not always the case, but sometimes, seeking bankruptcy may help in obtaining overdue child or child maintenance measures.
Knowing the effects of bankruptcy on child support payments while going through bankruptcy would be very important and helpful.
Frequently Asked Questions about Bankruptcy
1) I filed for bankruptcy. Now what?
You must notify the Child Support Division immediately if you have filed for bankruptcy. The relationship between child support and bankruptcy can be complicated.
2) Do I still have to pay for child support?
Yes, you are still obligated to pay child support even in bankruptcy. Your payment obligations remain in force, and any unpaid child support—known as arrears—cannot be discharged through bankruptcy.
If you stop making your child support payments, it could negatively impact your bankruptcy case. The Office of the Attorney General must adhere to federal bankruptcy laws and have various methods to enforce child support obligations.
3) Can I modify my child support?
You may be eligible to request a modification of your child support payments through the court. To do so, you must demonstrate that you cannot meet your current obligation due to unemployment, reduced income, or other significant changes in your circumstances.
Types of Bankruptcy
Individuals seeking relief from debt through bankruptcy typically pursue either Chapter 7 or Chapter 13 bankruptcy. Chapter 7 bankruptcy is designed for those who meet specific income criteria and provides total forgiveness for unsecured debts.
This means that if someone has outstanding credit card debt or medical bills, they are not required to repay that debt upon filing for Chapter 7 bankruptcy. However, specific properties may not be exempt from protection under Chapter 7 and could be sold to repay creditors.
On the other hand, Chapter 13 bankruptcy is for individuals who earn too much to qualify for Chapter 7 and requires them to repay a portion of their debts. One advantage of Chapter 13 bankruptcy is that it allows debtors to retain nonexempt property while adhering to a structured repayment plan.
Conclusion
The obligation to provide for minor children is prioritized within both state and federal court systems. In both Chapter 7 and Chapter 13 bankruptcies, child support debt is classified as a priority debt and is not dischargeable through bankruptcy. Consequently, any child support obligations will remain in effect, and you must make up any overdue payments.
Child support debts precede other priority debts, such as tax obligations and unsecured debts. In a Chapter 13 bankruptcy, any child support arrears must be paid in full as part of your repayment plan to receive a discharge from your other debts.
References:
- https://www.justia.com/family/child-custody-and-support/child-support/child-support-and-bankruptcy/
- https://www.investopedia.com/ask/answers/102814/what-debt-cannot-be-discharged-when-filing-bankruptcy.asp#:~:text=Key%20Takeaways,to%20another%20person%20or%20property.
- https://www.leinartlaw.com/resources/bankruptcy-and-child-support-arrears/