The automatic stay rule which prevents creditors and other debt collection entities from seeking remuneration from borrowers does not apply to child support payments. In other words, if you are trying to collect from an ex-spouse, his or her bankruptcy filing will not protect him or her from having to making good on past due support bills.
That said, during the reorganization period, the debtor's financial life can get quite complicated. Child support payments are considered highest priority -- meaning that they must be paid off before other creditor obligations, such as payday loans, credit cards and medical bills -- but the receiving spouse may have to work with an attorney to ensure the proper and speedy expedition of said child support payments.
If the debtor files for Chapter 13 bankruptcy, there is a good chance that his or her payments will be an essential condition for meeting his reorganization plan. In other words, if the spouse fails to meet both past due and future payments according to the plan, the bankruptcy may be nullified or other penalties may be enforced.
Federal Laws can help in this situation somewhat. Federal Bankruptcy Law can at least allow you to repay the total amount owed for Back Child Support over a period of up to 60 months this may well be what keeps you out of jail. If you owed $10,000 in back payments, your repayment using Federal Laws would be less than $50 per week.
What happens if a debtor has more than one set of child support past due payment obligations or if the debtor has “equally” pressing top priority creditors claims? The answer here depends intimately on the details of the case and on the precedent and application of state law. If you have questions about whether your ex-spouse may be able to make good on his or her post bankruptcy child support payments, work with your attorney to ensure enforcement.
If a child support lawsuit is in adjudication concomitantly with a bankruptcy filing, the situation can get quite complicated. While the courts typically go out of their way to ensure the welfare of children caught in parental disputes, the system is not bulletproof. Make sure that you understand all the contractual obligations of both parties in your child support arrangement.
Will filing bankruptcy stop legal action against you? Yes, at least as to past due child support, and as long as you are filing a Chapter 13 case, and as long as your plan provides for full payment of the past due amount in not more than 60 months.
The good news is that most people who choose to repay back child support in a Chapter 13 bankruptcy case are at least not burdened by legal difficulties and State Court hearings, once they start the process. Federal Laws were meant to solve these problems.
However, if you owe past due child support, you need to take action quickly. Don't wait until it is too late. The first move should be yours, not the Police Department, or your ex-wife, or anyone else. You need to take control of this situation, it will be you that can take credit for resolving the delinquency in payments.
You start by making a call to our office for a FREE Confidential appointment to discuss everything in detail. Federal Law can provide you with FAST protection. And once you file, you don't have to talk to anyone regarding this matter. Once you retain our services and file your case you just refer all calls over to us. We know what to say and what to do on your behalf.
Make the call now!
You can reach our office at the Toll Free number: 1-800-966-8447.
