Can child support arrears be forgiven in bankruptcy?

Can child support arrears be forgiven in bankruptcy?

Child support is considered a non-discharged priority debt, meaning that when filing Chapter 7 bankruptcy child support debt cannot be forgiven.

Can interest on child support be forgiven?

Although child support payments are owed to the custodial parent, the child is the beneficiary of these payments. Child support itself cannot be waived or modified except by agreement of the parties in writing and approval by the court.

What happens to alimony if you declare bankruptcy?

In general, alimony cannot typically be discharged due to a period of bankruptcy. However, there are two primary exceptions. For example, alimony payments may be decreased when the supported spouse’s division of property debt is discharged in bankruptcy, which forces the supporting spouse to take on that debt.

How does child support work in Chapter 13 bankruptcy?

Like many other debts, past due child support can be included in a Chapter 13 repayment plan. Your ex-spouse or state child support agency can make a claim against your bankruptcy estate to bring the debt to the court’s attention. As a priority debt, any arrears must be paid off entirely over the life of the plan.

How is interest on child support arrears determined?

The interest is generally determined in the same way as other civil judgments. States may look at interest on child support arrears as both an incentive to encourage timely payments as well as a penalty for those who do not make payments. Thirty-five states, Guam and Puerto Rico authorize interest charges for child support arrears.

Can you file bankruptcy on child support arrears?

You may not file bankruptcy on your child support arrearages, and the support arrearage will not go away until it is paid in full.

Can a state charge interest on unpaid child support?

States have the authority to charge interest on unpaid support at the rate set by state statute. The interest is generally determined in the same way as other civil judgments. States may look at interest on child support arrears as both an incentive to encourage timely payments as well as a penalty for those who do not make payments.

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