Will Filing Bankruptcy Halt Child Support Arrearages?

If you fall behind on child support payments, you may have a difficult time filling your financial obligations to your child. Many desperate parents turn to bankruptcy, hoping it will halt child support arrearages, but child support is non-dischargeable, and you will still owe it at the end. However, here are two ways in which filing bankruptcy can help you manage your financial obligation to your kids.

Bankruptcy Actually Makes It Easier to Pay

Child support is considered a public policy issue, because parents are legally required to provide for their children. Parents contributing their fair share helps ensure that their kids get what they need, and reduces the burden on social support systems, such as welfare.

As such, debts incurred as the result of caring for a child cannot be discharged in bankruptcy. However, filing for bankruptcy can actually make it easier to pay a support obligation, because it will free up money by wiping out other debts you owe.

For instance, if you're struggling to pay credit card debt, filing chapter 7 bankruptcy will clear it away, and you can redirect the money you were paying on those cards to getting caught up on your past-due child support.

Alternatively, filing chapter 13 lets you pay off both your arrearage and other bills over time. The benefit here is you only have to make one payment a month, which is often less than your current total amount due. Though you'll be paying through the plan for 3 to 5 years, it's typically a more affordable way to wipe out your debts.

Collection Action is Stalled

While filing bankruptcy won't cancel your child support arrearages, it can temporarily stop any current and pending collection action. If the state is garnishing your wages, for example, it would be required to suspend the order until your case concludes.

For chapter 7 filers, this reprieve only lasts for 4 to 6 months, which is how long it takes to get a discharge. It's chapter 13 filers who really benefit, though, because the automatic stay lasts the entire time the case is active. So, while you may be behind on your child support, you'll pay what you owe without being hounded by state collectors.

Filing bankruptcy is just one way of dealing with child support arrearages, but it may be the best option depending on your financial circumstances. Contact a bankruptcy lawyer to learn how filing a petition may help you.

For more information about how a bankruptcy law attorney can help, contact a local practice.