Child support will be handled differently depending on if you owe child support or are supposed to receive child support when you file bankruptcy. Let’s take a look at what happens in each situation.

You Owe Child Support

If you owe child support and plan on filing bankruptcy, you need to know that child support can not be discharged in bankruptcy. That means you will still owe the child support after filing. If you are responsible for your child’s health care. medical bills or child care these debts could also be subject to not being able to being discharged.

If you have lost your job or are facing other financial difficulties and need your child support lowered, you need to file a modification for reduction as soon as possible. Your child support can’t be lowered until you file, so it’s in your best interest to file as soon as possible. Bankruptcy cannot help you lower child support.

If you are behind on your support, in arrearages as they call it, your non-exempt property can be sold in order to pay the child support in a chapter 7 bankruptcy. If you are filing a chapter 13 bankruptcy, the arrearages must be included in your proposed payment plan and be paid off in order to receive your bankruptcy discharge.

You Are Owed Child Support

If you are owed child support and need to file bankruptcy, most states have an exemption that will protect the child support you are owed from being included in your bankruptcy estate. This will allow you to file without risking the support that is owed to your children.

If you are unclear about the laws regarding child support and bankruptcy you should speak with a bankruptcy attorney to make sure you are protected.