The condition of child support in bankruptcy cases

When in the throes of insurmountable debt, even your highest priorities can take a major hit. Providing for your children from a previous marriage may be number one on that list.

If you are in arrears with your child support payments, can declaring bankruptcy ease the strain of this delinquency? It can, but not in the way you may expect. Keep the following information in mind as you prepare for the next steps.

Child support is not dischargeable

Regardless of which type of bankruptcy you file under, there are some debts you still must account for. Past due alimony and child support falls into this category. In bankruptcy Chapters 11 and 13, your repayment schedule factors in the full amount. It is not negotiated down to a lower figure.

When the court reaches a decision regarding your financial obligation, it has already undergone the process of establishing paternity. Either voluntary confirmation or genetic testing has proven your children are fiscally your responsibility. Not even bankruptcy can change this ruling.

Bankruptcy can still help you make payments

LendingTree recently conducted a study to track the recovery success in bankruptcy cases. The research found that 65 percent of those who filed were pulling in credit scores exceeding 640 within a couple of years. This statistic demonstrates that most individuals turn their finances around in a short period of time.

Although you cannot discharge your child support debt, you can be free of other bills. With less of your income tied up in past due credit balances, you can allocate more attention to catching up on your parental payments.

Bankruptcy may not be able to wipe the slate completely clean, but it allows you to make room for your more important financial obligations. The choice to take this step not only helps your own chances of recovery, but it also benefits your children.

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