Bankruptcy seems to be an easy solution for those who are not able to meet their financial obligations, but there are legal ramifications one must consider before finally deciding to file an action for bankruptcy.
Contrary to the belief that bankruptcy relieves the petitioner from all debts, bankruptcy applies only to certain personal debts and financial obligations. It does not include a parent’s obligation to support his child; he still needs to pay child support before, during and after a successful bankruptcy proceeding filed in court.
Bankruptcy does not erase any child support a parent owes in arrears. For this reason, a parent who successfully obtains a bankruptcy order from the court should not expect the appropriate government agency in his state to stop sending him notices that he has to pay child support the way he expects creditors and collectors to stop bothering him for collecting payment. If it’s any consolation though, the relief provided by bankruptcy as to some personal debts enables the parent to apply his income to child support payments and help him meet his parental financial obligations.
Conversely, how does bankruptcy affect a parent receiving child support for his/her minor child(ren)? It does not affect the receiving parent who does not lose the right to receive it by filing for bankruptcy. The money the parent receives is not money intended for the parent but for the child, therefore it cannot even be considered as disposable income after necessary expenses for payment of debts in a Chapter 13 bankruptcy.
This blog is not legal advice, but shares information on the law. We are living in hard times; people lose their jobs and many are struggling to make ends meet. Legalbargain.net gives back to society by sharing it’s knowledge and producing advocacy videos to put justice within the reach of those who believe justice is only for those with money.
Comments