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Can Chapter 13 Bankruptcy Help with Child Support Debt?

Posted By Allmand Law Firm, PLLC || 6-Nov-2013

What Is A Bad Faith Bankruptcy?

Chapter 13 Bankruptcy and Child Support

If you are behind on child support payments those payments are not eligible to be wiped out in bankruptcy. Child support payments are considered priority debts that a debtor will continue to be responsible for even after their case ends. But, Chapter 13 bankruptcy may help you get caught up on payments. If you have unsecured debts with you case, they may be eligible for discharge to improve your ability to make ongoing support payments.

According to regulations set by Congress, a debtor cannot eliminate, wipe out or discharge debt related to child support due to its importance. Your Chapter 13 plan may include helping you pay off outstanding arrears or missed support payments. The filing can help organize your debts to allow you to makeup missed payments. In many cases, the plan may reduce what you would have paid to unsecured creditors (credit cards, medical bills, personal loans, etc.).

It is likely you may qualify to have more or most of your unsecured debt discharged due to payments being made toward support obligations. If you are facing legal collection action such as a lawsuit, the automatic stay may give you protection during your Chapter 13 case. As long you continue to make support payments according your court-approved plan, collection attempts from creditors should not be a problem.

Discuss your situation with an experienced Dallas bankruptcy lawyer. Keep in mind you need to make payments each month promptly and be current in order for you to get unsecured debts discharged. If changes occur during your case with your income, report them immediately to your legal representative.


Categories: Chapter 13 Bankruptcy
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