Bankruptcy Can Help You With Your Child Support Obligations

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Child support and Bankruptcy

Child support is one of the most priority or preferential payments in the eyes of law. One might be able to evade all kinds of secured/unsecured loans but getting away with child support is probably the most difficult task no matter how poor or bankrupt you may be. One more debt that comes in this category is student loans. Students could complete graduation and apply for bankruptcy then and get away with any sort of student loan on their name. This is the primary reason why Student loan has been excluded. Similarly in the case of child support, the federal government, and the law place special emphasis on the care/support of children. The court is very strict on individuals using bankruptcy as a mode to evade supporting their children. Some other debts that include criminal offenses, legal fees, drink, and drive ticket, etc., are also excluded from the bankruptcy procedure.

Bankruptcy can help you with your child support obligations

Child support is the responsibility of both parents. Child support is the financial assistance for the child until a specific age or until and unless the child becomes capable of covering his/her own needs. The parent who is not having the custody of a child usually pays for child support. On the other hand, the custodial parent has to take care of housing expenses, food/daily care, etc., for the child. The child support is usually determined by the court depending on various factors like income of the parents, specific child needs, duration of support required, etc. The payments are to be used for childcare and they can be direct in cash or cheque to the custodial parent or could be indirect in the form of purchases.

Wage garnishment rules

Wage garnishment is the process of withholding the income from the W-2 directly by the authorities in order to direct the same towards child support. The percentage of the garnishment varies based on state. As per California, the percentage could go as high as 65% under certain conditions. Under the rules, the child support has to be paid for at least 18 years and could go to 19, if the child is not married and is pursuing education. log on to to know how you can prevent wage garnishment and other consequences.

Child support scenario with Chapter 7 and Chapter 13

In the case of Chapter 7, the surrendered assets or otherwise called non-exempt assets are to be liquidated and the debts are to be settled with the proceeds. The first right on the proceeds is towards the child support and/or spousal support. Once the proceeds satisfy both of them, the remaining proceeds shall be used for repaying secured debts first and then the unsecured ones thereafter. Whatever debts are not covered in the proceeds of liquidated assets shall be forgiven or written off by the debtors. The case, however, does not hold true in the case of Chapter 13 bankruptcy. Since Chapter 13 proposes a payment plan for a period of 3-5 years. The biggest difference with respect to the ‘automatic stay’ offered under Chapter 13 and Chapter 7 is that the former offers protection in case of child support also.

Being current on child support is the basic requirement for receiving any kind of release of debt under Chapter 13. If you are behind on the child support payments, get current on it for beneficial bankruptcy settlements. No matter if you are using Chapter 7 or Chapter 13 bankruptcy, there are certain modes of making child support payments easier. Evading child support isn’t right legally as well ethically but in case you need help in making your life easier with child support call +1 (888)-297-6203 right now.