Being awarded child support is very important for financial stability of the child support recipient and his/her children. Thus, the possibility of not receiving the child support that is owed can be detrimental. One question often in the minds of child support recipients is whether the payor spouse can avoid paying for child support by filing for bankruptcy.
Luckily, the Bankruptcy Code is designed to attempt to protect the rights of the former spouse to collect child support due to him or her. Congress apparently realized that child support debt is too important and thus should not be able to be discharged in bankruptcy proceedings. Typically when a debtor files for bankruptcy an automatic stay comes into effect which halts creditors from collecting on their debts from the debtor. However, this automatic stay does not apply to enforcement of the collection of child support. The spouse who receives the child support doesn't even have to file any proof of claim or objection to the bankruptcy court in order to enforce his or her right to receive the child support. Rather, an existing order to pay child support debts remains in effect and will continue to accrue during and even after the bankruptcy case is completed. As a result, a former spouse that files bankruptcy cannot avoid paying child support.
However, it is important to note that past due child support that was owed as of the date of filing for bankruptcy might not be paid immediately. The automatic stay will often prevent this issue from being addressed until the automatic stay is lifted, especially if there are many credits in line.
Although child support can be extremely burdensome on the payor, filing for bankruptcy is not an effective means of eliminating the financial obligation. A better forum to reduce child support payments is the family law court, if appropriate factors apply of course. However, filing for bankruptcy might help reduce other unsecure debts such that child support obligations may be easier to afford for the payor spouse.
Another important note is that if you are the recipient of child support and you file for bankruptcy, the child support payments you receive are exempt from bankruptcy proceedings, meaning that those payments cannot be used to pay creditors.