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How Bankruptcy Affects Child Support Payments
by Joseph Devine
Your children rely on regular child support payments for all kinds of necessities: food, clothing, shelter, medical attention. It's every parent's responsibility to care for his or her child, and child support payments are a way of enforcing a non-custodial parent's debt to his or her children. So what happens when the person supposed to make the payments files for bankruptcy? Will it put your children's welfare into jeopardy? Can your children afford bankruptcy?
Fortunately, even during bankruptcy proceedings, a parent is still required to make his or her court-ordered child support payments. The welfare and care of the children is considered a top priority under American law, and these obligations take precedence over the relief afforded by filing for bankruptcy. The recent Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) helps clarify the rules surrounding such payments, and re-emphasizes the importance of providing for and caring for one's children.
Chapter 7 bankruptcy is a type of liquidation bankruptcy, in which non-exempt property is sold. The sale of these items is used to pay off one's creditors. For example, if you owe $10,000 to the bank and can't pay it, you can file for Chapter 7 bankruptcy, and the money made from the sale of your possessions is used to pay off that debt. Under the BAPCPA, the continued support of any children is considered a serious priority, and proceeds from the sale go towards your court-ordered payment plan first, before creditors are able to take the money.
Chapter 13 is the other common type of personal bankruptcy, and it is a restructuring bankruptcy. In Chapter 13, you present the courts with a plan to repay your debts over a set number of years with regular payments to your creditors. When child support is involved, the payments are included in the court documents describing the repayment plan. For the Chapter 13 bankruptcy filing to be confirmed, there must be clear plan to make regular child support payments.
While the idea of having your former spouse enter into bankruptcy may be initially scary, bankruptcy actually allows him or her to make the child support payments on a more regular basis. Because the other outstanding debts are being reduced, there will be more money available for the children.
About the Author
To learn more about how bankruptcy affects the terms of your divorce, or if you have any other questions about family and divorce law, visit divorcelawyerssandiego.com
Joseph Devine
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