If you’re obligated to provide child support and fall behind on payments, you’re likely concerned that this could jeopardize your eligibility for bankruptcy relief. While you can still file for bankruptcy, child support will be classified as a priority debt. To understand what this means for your debt discharge and how an experienced Rockland County Bankruptcy Attorney can guide you through this complex process, please continue reading.
Can You File for Bankruptcy If You Owe Child Support?
Contrary to popular belief, you can still file for bankruptcy even if you’ve fallen behind on your child support. Child support is given special priority status under bankruptcy law. This means it has to be paid before any other debts.
Generally, bankruptcy doesn’t eliminate your child support obligation. Regardless of whether you’ve filed Chapter 7 or Chapter 13 bankruptcy, any past-due amounts, or arrears, are still owed. It should be noted that the courts are strict about this rule.
Despite not being able to reduce the amount you owe, bankruptcy can still prove beneficial in other ways. Although you’ll still be responsible for the arrears in full, if you file Chapter 13 bankruptcy, you can structure the repayment over time through a court-approved plan (typically spanning three to five years). This can help you manage payments, but doesn’t wipe out the debt.
Does Bankruptcy Stop Child Support Enforcement Actions?
When you file for bankruptcy in New York, it will trigger the automatic stay, which temporarily halts most collection efforts. However, this protection is limited when it comes to child support obligations.
The standard measure employed to compel payment of child support will usually continue if you file for bankruptcy without interruption, such as wage garnishments, tax refund interception, or license suspension. Enforcement actions are seen as essential to ensure the welfare of a child and, therefore, given priority over the debtor’s financial relief. This exception basically guarantees that dependents still get the financial support they are owed despite the parent’s financial distress.
What Should I Do If I’m Behind on Child Support?
In the unfortunate event that you’ve fallen behind on child support, you should act quickly to prevent additional consequences. It’s advisable to review your financial situation and determine whether a modification of support is possible. For a modification, bear in mind that you’ll need to prove that your financial circumstances have significantly changed. Furthermore, you should try to stay current on ongoing support if feasible and consider filing for bankruptcy to address other outstanding debt obligations.
At The Lauterbach Law Firm, we are prepared to help you determine the best course of action to regain your financial security. Connect with us today to schedule a consultation.
