How does Chapter 13 Bankruptcy Help Child Support Arrears?

Ben T

July 3, 2024

There are many reasons why someone may need to file for Chapter 13 bankruptcy relief. Some individuals get behind on mortgage payments or car loan payments. Other individuals may owe substantial medical debts or tax debts. In some cases, an individual may file Chapter 13 because of child support arrears or back alimony payments. Even though some of these debts may not be dischargeable in bankruptcy, that does not mean that filing Chapter 13 may not help resolve the debt problem.

Can I Get Rid of Back Child Support Payments in Chapter 13?

Domestic support obligations (child support payments and spousal support payments) are not eligible for a discharge in bankruptcy. You cannot get rid of back child support payments or alimony payments regardless of whether you file under Chapter 13 or Chapter 7. However, filing a Chapter 13 bankruptcy can help you avoid jail time and other penalties for back child support payments.

Filing Chapter 13 for Child Support Arrears

When you get behind in your child support payments, you could face severe punishments. Depending on your state laws, you could be confined to jail, lose your tax refunds, and have your driver’s license suspended for back child support obligations. In some states, you could have wages garnished for child support arrears.

Filing a Chapter 7 bankruptcy will not help with child support or alimony payments. You can discharge many unsecured debts through bankruptcy, but you cannot get rid of child support or alimony payments.

However, filing a Chapter 13 case can help. Through a Chapter 13 case, you can catch up child support arrears or back alimony payments over a three to a five-year bankruptcy repayment plan. The Chapter 13 trustee receives your bankruptcy payments each month and uses a portion of those payments to catch up child support arrears. At the end of the Chapter 13 plan, your child support is current. You don’t have to worry about going to jail, losing your tax refunds, or having your driver’s license suspended.

How Does Your Chapter 13 Plan Payment Account for Arrears?

You may be wondering whether you can afford a Chapter 13 payment plan and what are the pros and cons of a Chapter 13 bankruptcy. See the calculator below that uses US bankruptcy forms to estimate your Chapter 13 plan payment, see pros and cons, and compare Chapter 13 to other debt-relief options:

You Must Remain Current on Future Child Support Payments in Chapter 13

Your Chapter 13 plan requires that you remain current on all future domestic support obligations. If you miss future child support payments, your Chapter 13 case could be dismissed. You will face the same potential penalties for child support arrears that you did before you filed a Chapter 13 case.

Before your Chapter 13 case is closed and you receive your bankruptcy discharge, you are required to sign an affidavit stating that all child support and alimony payments are current.

Other Benefits of Filing Under Chapter 13

Chapter 13 offers many benefits in addition to helping with child support arrears or back alimony payments. By filing a Chapter 13 bankruptcy case, you can:

Stop repossessions and foreclosures
Stop wage garnishments
Keep your home, car, and other property
Get rid of back child support and alimony payments
Get rid of other non-dischargeable debts, such as personal income taxes
Lower the amount you owe on your car if you meet certain requirements
Get rid of a second mortgage, if you meet certain requirements
Protect property that would be at risk of being sold by the bankruptcy court under Chapter 7
Get rid of most unsecured debts for a small percentage of what you owe to those creditors
Get a fresh start to improve your financial wellbeing
Avoid depleting savings, retirement accounts, and home equity to pay debts that you cannot afford to pay

Filing Chapter 13 is a big decision. There could be consequences of filing Chapter 13 that might be a disadvantage. Even though you might be able to get rid of child support arrears and back alimony payments, there could be risks that you need to review and consider. Before filing for bankruptcy, it is wise to seek advice from an experienced bankruptcy attorney.

Are You Struggling with Debts You Cannot Pay? If so, Ascend might be able to help. We offer a variety of services related to debt relief. Learn more about your debt-relief options and how you can get out of debt. If you are ready to explore options to become debt-free, get started now to see if Ascend is a good fit for you.

Ben T

Ben has studied Chapter 7 and Chapter 13 bankruptcy for many years. He has helped thousands of people understand the differences between Chapter 7 and Chapter 13 bankruptcy and has helped build one of the largest bankruptcy attorney networks in the United States.

Leave a Reply Cancel reply

Reviews

★★★★★

5.0 stars from 280+ reviews

Synthia DuBose

08/21/2023

My family was grappling with the burden of credit card debt. We had explored various avenues, including debt relief companies and consolidation loans, but everything seemed dubious and left us feeling uncertain. That all changed when I came across Ascend and had the opportunity to connect with Justin. He reached out to me on the very same day, and from that point forward, things took a turn for the better.

I provided Justin with an overview of our financial situation, our objectives, and the timeline we hoped to achieve our goals within. He promptly outlined the possible courses of action and presented a thorough breakdown of our various options. What truly stood out was Justin’s approach—he never pressured me into making a quick decision. Instead, he offered me the information and allowed me to ask questions at my own pace.

Upon selecting the path we wanted to pursue, Justin facilitated our connection with a non-profit organization. Much to our delight, they exhibited the same level of courtesy, expertise, and patience that Justin had demonstrated. In retrospect, the entire experience instilled a sense of confidence within us. We now believe we have a solid foundation and are well on our way to achieving financial success!

Dahveed Krisna

07/26/2022

Ben and his assistant Jeffrey from Ascend Finance did an awesome job helping me to find an attorney who could talk with me openly and honestly about Chapter 13 as an option for my financial situation. Before finding out about Ascend’s bankruptcy calculators, I was stuck on a wheel of countless offers for consolidation loans, but always steered towards debt settlement or debt management plans over and over again due to my credit score and high utilization percentage. Based on data I entered into Ascend’s calculator, Ben and Jeffrey reviewed my situation and quickly connected me with a skillful, experienced bankruptcy attorney. I finally feel like I’m on the best path to being debt free; one that will save me a lot more money than any of the debt settlement or debt management programs that other companies and agencies have offered me… THANKS Ben, Jeffrey and Ascend!!

JorJor Binks

02/09/2024

These guys are truly a beacon for those of us with too much debt. From the start where I found Ben on the YouTube channel Ascend I have been treated as a real person by real people. Even getting a personal call helping me figure things out. I went through one of the lawyers recommended by Ascend and as of January 2nd I am debt discharged, and already have a great credit card from Mission Lane for $2000. Things are getting back into place and my life feels so much less stressful due to the weight of debt being off my shoulders.

PLEASE give these guys a call if you are even considering any sort of debt relief be it bankruptcy, consolidation, or whatever other types of debt relief are out there. I can’t thank the Ascend team enough. (I was not paid to post this, or told to do this. I am genuinely so thankful to have the help when I needed it most♥️)

Ascend