Bankruptcy can be the next step you take to gain control over your finances and rid yourself of devastating debt. However, some people believe that filing for bankruptcy is the end to paying other bills, like child support. So – will filing for bankruptcy eliminate child support debt? We’ve got all the information you need to know right here!

Will My Child Support be Discharged?

The simple answer is no; your child support payments will not be completely discharged if you file for bankruptcy. It can, however, help discharge other debts to make it easier for you to make your child support payments. This will allow you to set your finances up so that you can afford the payments and work to become debt-free.

How Does Filing Help?

If you are eligible for bankruptcy and you are able to discharge your debts, you can concentrate on one debt at a time – starting with child support payments. In some cases, filing for bankruptcy allows you to rid yourself of other debts, making it possible to focus on your child support payments. When you file for bankruptcy, the court can issue an automatic stay provision, which stops debt collectors from contacting you and requesting money. This will free up your budget, so you do not have to pay multiple debts at a time. In other cases, bankruptcy can buy you time and lower your monthly balance so you can catch up on your debt. Filing for bankruptcy can be a massive part of digging yourself out of a financial hole.

Should I File Chapter 7 or Chapter 13?

Choosing what type of bankruptcy to file depends on your situation. If you file for Chapter 7, many of your other debts can be discharged, including credit card debt, medical bills, and even student loans. This allows you to catch up on child support payments without worrying about other debts and collectors.

Chapter 13 bankruptcy allows you to create a repayment plan and repay the amount you owe over time based on your current disposable income. This way, you are only paying what you can actually afford, which will help you avoid furthering your debt. Chapter 13 also allows you to pay child support before you have to pay any unsecured creditors or taxes.

Should I Modify My Payments Instead?

Before filing, you could consider requesting that your child support be modified due to a change in your circumstances. For instance, if you were laid off from your job and lost your primary source of income, you could request to modify your child support payments and reduce the amount you must pay.

The policies and rules of filing for bankruptcy can be overwhelming, and deciding if filing is right for you can be difficult. Though filing for bankruptcy does not discharge child support payments, it can help make them easier to pay. Leslie Craft at Craft Law Offices has over 30 years of experience dealing with personal bankruptcies and making the process as painless and straightforward as possible. Contact our office for a free consultation now at 252-752-0297.