Some people are concerned with whether or not bankruptcy will help relieve back payments due on child support or alimony. This is one area of bankruptcy law that is pretty clear. In short, bankruptcy will not relieve you of child support or alimony payment. These types of payments are some of the rare forms of debt that are non-dischargeable and are even given priority over other kinds of debt. Bankruptcy may seem like a way out of these debts, but it simply is not. Bankruptcy will also not protect you from having to make payments on child support or alimony after your debt is discharged either. It is important to know some basic facts on these matters before pursuing bankruptcy.
Child support and alimony get priority over other debts. Specifically, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 protects those payments. This means that child support and alimony are a priority over any other debts, regardless of the chapter of bankruptcy you intend to file.
The automatic stay will not protect you from your debts from child support or alimony while in bankruptcy. In fact, a lawsuit can still be pursued to recover child support or alimony even while the protection of the automatic stay is in place. Just because creditors are no long allowed to harass you does not mean that the court cannot pursue obtaining child support and alimony back payments. Child support and alimony are some rare exceptions to protection that the automatic stay provides.
Name is the game when it comes to alimony and child support in bankruptcy. The only way that these kinds of back support can be wiped out is if a proof of claim is not filed. A complaint must also be filed. If a complaint is not filed, there is a chance that the back support payments could be wiped out and would not be able to be collected later. However, this will not relieve you from having to continue to pay alimony or child support through the bankruptcy, and after your debt is discharged.
All in all, it is important to know that you must continue to pay your child support and/or alimony even if you plan to file bankruptcy. The automatic stay will not protect you. It is one of the few exceptions where you can be held liable for any back payments. It is in your best interest to continue paying on child support and alimony and not risk a lawsuit. However, bankruptcy can relieve you of other debts making it easier to pay your child support or alimony payments. If you are interested in the types of debt that bankruptcy can relieve you from, call us today at (877) 346-7411.