Bankruptcy and Child Support
It is understandable that individuals may face financial struggles at times, and may find themselves unable to meet the demands of their creditors. In the event of serious financial trouble, individuals may seek relief from their problems through bankruptcy. Although many different types of debts may be discharged through Chapter 13 and Chapter 7 bankruptcy procedures, some types of debt like tax liabilities, student loans, and child support payments are not eligible for discharge.
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It is important for people to understand the different types of debt that may be discharged through bankruptcy and which ones may not be discharged through the legal process. When considering bankruptcy, individuals must assess the types of debts they are struggling with and choose the right plan that fits them before proceeding with the application process.
When it comes to providing support for dependents, bankruptcy laws make it clear that child support payments are debts that should still be paid in a timely fashion. Such payments are usually referred to as "debts in nature of support" and are not eligible for discharge through either Chapter 7 or Chapter 13 bankruptcy filings.
If a parent is delinquent on support payments, the back-payments are often considered to be "child support payments in arrears" and are also still considered to be viable debts even if the parent files for bankruptcy. This way, parents are not able to shirk their financial responsibilities to their children even if they are facing serious financial difficulties.
Even though many payments cannot be discharged through bankruptcy, filing for Chapter 7 or Chapter 13 may help parents by removing dischargeable debts and allowing them to use their available funds to catch up on back payments and maintain timely payments for the future. By ridding themselves of unsecured debts, the individual going through bankruptcy will hopefully have more funds to be able to support their children and provide adequate support following the conclusion of the legal proceedings.
Parents who are considering filing for bankruptcy should carefully examine their financial situation and are wise to take into account any assets, college funds, and any property they may have before filing for bankruptcy. By consulting an experienced bankruptcy attorney, people can assess their situation and ask questions about the overall process. If you would like to know more about bankruptcy and child support, visit the website of the Austin bankruptcy attorneys of Slater Kennon & Jameson, LLP.
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