How Will Bankruptcy Affect My Child Support Debt?

Memphis TN bankruptcy lawyersNaturally, when you’re suffering a financial hardship, paying any monthly becomes taxing and nearly impossible. As much as you may love your children, the reality is that paying child support each month doesn’t somehow become easier or possible just because you want it to be. You may be months or even years behind in child support payments so this is one of your biggest debts. If that’s the case, you may hope that child support debt is a debt that you can discharge.


However, you cannot discharge child support debt. This is true even if one or all of your children have now reached the age of the majority if you are still in arrears. Child support is the right of the child, not the parent. Rendering financial aid to your child is a legal obligation, and it’s a duty that filing for bankruptcy won’t wipe out. Also, bear in mind that bankruptcy court and family court are separate divisions.

Fortunately, there is a possibility that you may at least lower the amount that you’re ordered to pay each month. A family court judge may lower what you owe monthly if there’s a substantial change in your income. Proof of financial hardship that requires you to file for bankruptcy is a substantial change. But before you apply for a reduction, call the knowledgeable Memphis TN bankruptcy lawyers of Darrell Castle & Associates. Otherwise, you may misquote or forget to include essential information and risk not getting the results that you desire.

What Are Other Bankruptcy Chapters I Can File For?

This may come as a surprise, but there are other bankruptcy chapters aside from Chapter 7 and Chapter 13 bankruptcy. As you know, Chapter 7 bankruptcy liquidates your assets and sells them off so that the profit from your sales can pay off your creditors. Chapter 13 bankruptcy, on the other hand, reviews your income, consolidates your debt, and puts you on a three-to-five-year payment plan to pay off your creditors. But have you heard of Chapter 11 and Chapter 12 bankruptcy?

Chapter 11 bankruptcy is a viable option for business owners, individuals, partnerships, joint ventures, and businesses. Some business owners prefer filing for Chapter 11 over Chapter 7 bankruptcy because Chapter 11 permits business owners to retain control of their business. Not to mention, they don’t have to sell off their rights and assets as they would in a Chapter 7 filing. But as with Chapter 7 (and unlike with Chapter 13), there’s no debt ceiling or floor to qualify.

If you’re a farmer or fisher, then you should know about Chapter 12 bankruptcy. Chapter 12 is carved out exclusively for farmers and fishers who come under financial hardship. For a farmer or fisher to qualify for this form of debt relief, you must prove that you have or will have enough income to pay off your creditors in three to five years. Please note that you may file as an individual or spouse, or as a farming or fishing company.