Navigating Bankruptcy and Clearing Child Support in New York

Facing a mountain of debt while juggling child support payments in New York can feel overwhelming. Thankfully, there are legal avenues to explore. This post discusses bankruptcy and clearing child support in New York, offering practical guidance.

Bankruptcy and clearing child support in New York is a complex topic. This isn’t about dodging responsibilities. It’s about understanding the system and creating a plan to move forward responsibly.

Bankruptcy and Clearing Child Support in New York: A Practical Guide

Many believe filing for bankruptcy eliminates all debts. This isn’t true with child support. These support obligations continue, regardless of bankruptcy.

This article will address common questions about how bankruptcy interacts with child support in New York.

Understanding Child Support Obligations

Child support is designed to protect a child’s well-being. It’s a priority debt, coming before most other debts in a bankruptcy case. The federal Bankruptcy Code is clear – child support is a domestic support obligation, not dischargeable through bankruptcy.

Section 523(a)(5) outlines exceptions to dischargeable debts, addressing “domestic support obligations.” Section 101(14a)(a) defines support payments owed as those for “a spouse, former spouse, child of the debtor, or such child’s parent, legal guardian, or responsible relative, or a governmental unit.”

This includes support listed in separation agreements, divorce decrees, or property settlements. This fact shapes your approach to bankruptcy, and also influences debt collection actions a creditor can make against you.

Automatic Stay and Child Support

Filing for bankruptcy triggers an “automatic stay,” pausing most debt collection. This pause doesn’t apply to domestic support obligations like child support. The support obligation continues, with required payments, affecting your bankruptcy case.

Section 362(b)(2)(A)(ii) of the Bankruptcy Code clarifies that the automatic stay does *not* stop child support orders. This emphasizes how important the system considers providing for children.

Chapter 7 Bankruptcy and Child Support

In Chapter 7 bankruptcy, assets are liquidated to pay off debts. Many debts might be discharged, but this is not the case for child support obligations.

Your assets may be sold. After the bankruptcy process concludes, support debt (existing *and* any accrued during the case) still stands. An individual files for Chapter 7 seeking bankruptcy relief by discharging their dischargeable debts, however, child support is not one of those dischargeable debts.

Chapter 13 Bankruptcy and Child Support

Chapter 13 bankruptcy establishes a 3-5 year repayment plan. Child support and any overdue support (arrears) are part of that plan.

These payments take precedence, listed first according to priorities for creditors in Chapter 13 filings. You’ll need to manage current support and spousal maintenance payments while in the repayment plan. Maintaining current child support payments remains essential, with earnings considered property of the bankruptcy estate.

When an individual files Chapter 13, all debts and financial matters, including child support, are taken into account and scrutinized by the bankruptcy judge. They determine if payments should be part of the five-year period established by bankruptcy law. In Chapter 13, current child support payments will be the first item on the agenda. It includes payments that must be included throughout the process. A NY bankruptcy attorney can advise you on your legal options regarding this matter.

Seeking Legal Counsel

Navigating bankruptcy alongside child support is complex. A qualified attorney can assist with child support modifications. This is useful when circumstances like unemployment or medical bills affect income.

Modifications often require court filings and evidence. A bankruptcy attorney can also advise on real estate, which can often get tied up during the process.

The Law Office of William Waldner offers free initial consultation services to assess your unique needs. They can guide you in navigating the complex regulations surrounding your specific situation. Mr. Waldner can help discuss the potential impacts of bankruptcy filings on child support payments. The legal expertise you receive can be useful as you make these challenging decisions. These offices provide assistance with bankruptcy and clearing child support, spousal maintenance, support payments and child support payments. 

Conclusion

Bankruptcy and clearing child support in New York require careful planning. Bankruptcy doesn’t erase child support obligations. But it *can* provide tools to manage overall debt and create a plan to meet those obligations.

Understanding your options for bankruptcy and clearing child support in New York is the first step toward a stable future. Remember, child support is a constant obligation, even during changing financial situations.