Featured:
Allergies
Grilling Guide
eHow Now Blog

What to Do About Child Support If an Ex-Husband Files for Chapter 13 Bankruptcy

Child-support payments, and any other money paid for domestic support, cannot be discharged in bankruptcy. In fact, support payments take precedence over all other obligations, and bankruptcy cases ensure that any support that is ordered is paid. An ex-spouse cannot escape child-support orders by filing for bankruptcy. He does, however, have other options that could affect your receiving timely payments and payments in full.

  1. Legal Implications

    • Bankruptcy is a legal action that is taken by a person or business that has excessive debt. Bankruptcy helps the filer to modify or to eliminate those debts to get a fresh start. In a Chapter 13 bankruptcy, a debtor basically reorganizes his debts and agrees to a payment plan, managed by a bankruptcy trustee who distributes the money to the creditors based on the plan. Bankruptcies are common among people who are ordered to pay child support, and child-support enforcement agencies are frequently part of the bankruptcy proceedings. According the U.S. Government Accountability Office, 7 percent of all bankruptcy filers have child-support obligations. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 requires that if a parent with child-support obligations files for bankruptcy, the bankruptcy trustee must notify you as the custodial parent and the state child-support enforcement agency so that you each may participate in the case.

    Priority Payments

    • The law gives all domestic-support obligations first priority in the distribution of funds in a bankruptcy proceeding. This means that, as income comes in, the trustee in the case ensures that child support, and other priority debts, are paid first. In this way, a custodial parent who depends on child support can view a bankruptcy filing by an ex-spouse as beneficial; bankruptcy becomes another enforcement tool to ensure that payment is made. Even property that other creditors can't touch in a bankruptcy case can be liquidated in a bankruptcy to make child-support payments. Child support becomes part of the ex-spouse's debt reorganization plan, and if he doesn't pay all the support owed --- including arrearage --- the bankruptcy can be nullified and he can face additional penalties.

    Medical Support

    • The provisions made in the law regarding bankruptcy and child support also apply to medical support and any other debts "in the nature of support." So, hospital bills, doctor visit bills and even credit-card debt incurred in the upbringing of the child must be paid in full.

    Delays

    • The noncustodial parent who has filed for bankruptcy has the right to object to any debt and may, in Chapter 13 filing, propose to pay a different amount. He can also ask for a full audit of payments that he has already made to force the child-support agency to prove the amount he owes. Each of these tactics can delay payment. However, child support is a nondischargeable debt, and won't go away.

    Modifications

    • Bankruptcy filers are usually financially distressed because of job losses, illnesses and other life circumstances. Child-support agencies are not oblivious to the trials of life. An ex-spouse who owes child support and suffers a financial loss can, at any time, petition to get the court-ordered support modified. He will have to prove that his financial position changed, but bankruptcy is generally a good indicator. A court can lower the amount due going forward until his financial condition improves. It is unlikely that back support owed will be modified. As a custodial parent who is owed child support, you need to be prepared for the likelihood of a modification request. If you believe it is simply a tactic to get out of paying, you must be able to prove the ex-spouse's ability to pay the amount owed.

Related Searches:

References

Resources

Comments

You May Also Like

Related Ads

thumbnail
Featured