How Chapter 13 Bankruptcy May Help When Behind on Child Support

 Posted on December 07, 2023 in Bankruptcy

Falling behind on child support payments can quickly snowball out of control between steadily accumulating monthly amounts owed, interest charges, penalties, and aggressive collection actions. However, parents struggling with past-due child support may find relief through using Chapter 13 bankruptcy. 

While it does not discharge unpaid support, Chapter 13 allows you to repay arrearages over time through an affordable, court-supervised repayment plan. A Texas attorney can help determine if this is an ideal option for you.

The Benefits of Filing Chapter 13 Bankruptcy

Chapter 13 bankruptcy allows you to restructure debts under court protection while repaying a portion of what you owe over time. This contrasts Chapter 7 bankruptcy which completely discharges qualifying debt. The major advantage to a Chapter 13 is being able to catch up on back payments owed to creditors, including making up missed child support payments. Your repayment plan outlines an affordable monthly amount to creditors. Having this court-ordered structure can provide much-needed flexibility when juggling debt obligations.

Creating Manageable Child Support Payments

Child support arrearages, including interest and penalties, are not discharged under bankruptcy except in special cases. So you still owe any back unpaid support. However, by filing for Chapter 13, you can build all past-due child support into your repayment plan. Having an affordable, consistent payment over three to five years monitored by the court allows you the chance to pay off what’s owed while keeping up with current obligations. Your case trustee will ensure you remain on track each month. Without bankruptcy, constant threats of enforcement actions can result from inability to cover growing support debts.

Halting Interest, Fees & Collection Efforts

One major benefit a Chapter 13 bankruptcy case delivers is stopping interest, late fees, attorney costs or other charges from accumulating on unpaid child support during your repayment term. These additional penalties quickly bloat original amounts owed. Your case also invokes an automatic stay, stopping wage garnishments, bank levies or other involuntary collection activities tied to support debts. However, lien rights connected to your property remain intact in some states.

Contact a Dallas, TX Bankruptcy Lawyer

The idea of catching up on child support debts that keep piling up can feel overwhelming. But Chapter 13 bankruptcy offers struggling parents a structured path to tackle present and past-due obligations over time while benefiting from court oversight and protections. Working with a Parker County, TX bankruptcy attorney is vital for tailoring an optimal bankruptcy strategy addressing your unique situation. Call Acker Warren P.C. at 817-752-9033 for a free consultation.