If your current financial difficulties have lead you to consider filing for Chapter 7 or Chapter 13 bankruptcy, you more than likely have many questions and concerns. These concerns may be amplified if you are responsible for paying child support and/or spousal support.

• Am I still responsible for spousal support and child support payments if I file for bankruptcy?
• Can I pay one obligation and not the other?
• Can I even file for bankruptcy?

The simple answer is that while you can file for bankruptcy (Chapter 7 or Chapter), you cannot discharge either support obligation.

In fact, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) dictates that past due spousal support and child support payments have priority over all other debts owed, including back taxes.

How Will My Former Spouse Know If I am Filing for Bankruptcy?

A bankruptcy trustee will alert your former spouse, as well as the child support enforcement agency (The Division of Welfare and Support Services of the Nevada Department of Health and Human Services) on two occasions: at the time you file and at the time you receive any discharge.

What Happens If I Don't Have Many Assets To Liquidate?

If you have relatively few assets to liquidate, the bankruptcy trustee will probably create some type of payment schedule for both past due and future payments.

Please note, if you ever want to modify this payment schedule, you will need to petition the local family court. You will probably need to demonstrate a substantial change in circumstances or some other type of financial hardship.

What Happens If I Have Assets To Liquidate?

If you have significant disposable assets, they will more than likely be liquidated to cover any past due spousal support or child support payments. This will more than likely put you in a better position to make future support payments.

Talk with a skilled and experienced professional to learn more about bankruptcy and its impact on support obligations.

Related Resources:
  
• Bankruptcy Doesn't Absolve Spousal Support Payments (CreditCards.com)