Child Support and Bankruptcy: What You Should Know

Whether you owe child support and are considering filing for bankruptcy in Illinois, or you receive child support and are concerned about how your bankruptcy case will affect the child support payments you receive, it is important to learn more about child support and bankruptcy. Generally speaking, child support payments are usually exempt in bankruptcy cases for the party receiving child support, and child support debts cannot be discharged in a bankruptcy case. Yet there is more you should know, and if your bankruptcy case involves child support in any way, it is important to seek advice from a bankruptcy lawyer in Oak Park as soon as you can. The following are some of the key things you should know about child support and bankruptcy.

Child Support Debt Cannot be Discharged in a Consumer Bankruptcy Case

Child support, along with any other kind of family support debt, is not dischargeable in a bankruptcy case. Accordingly, whether you owe child support or you are concerned about an ex who owes child support filing for bankruptcy, you should know that child support is a type of non-dischargeable debt.

Automatic Stay Will Not Stop Child Support Collections

While the automatic stay stops creditors and debt collectors from attempting to collect on most kinds of debt—at least temporarily—in a consumer bankruptcy case, the automatic stay will not prevent a parent who is owed child support from continuing to collect, or asking the state child support collections office from continuing to take steps to collect past due child support.

Child Support is a Type of Priority Debt

Child support is a priority debt, which means it will need to be paid in a bankruptcy case before creditors associated with other types of debt will be paid.

Most Child Support Payments are Exempt for Recipient Parents Filing for Bankruptcy

If you are planning to file for bankruptcy and you receive child support payments as a parent with a majority of the parenting time, it is important to know that the child support payments you receive from the child’s other parent will likely be exempt under Illinois bankruptcy exemptions. In general, child support is only exempt up to the amount necessary to support the child, but for most debtors, this includes the full amount of any child support payment received. Illinois law expressly states that support payments are exempt “to the extent reasonably necessary for the support of the debtor and any dependent of the debtor.” If you have questions, you should seek advice from an Oak Park bankruptcy lawyer who can assist you.

Contact Our Oak Park Bankruptcy Lawyers Today

If you have any questions about child support and bankruptcy, one of our experienced Oak Park bankruptcy attorneys can assist you. We can provide you with more information about how a bankruptcy filing will affect your ability to obtain child support payments from an ex who has filed for bankruptcy, and we can also give you more information about how your own decision to file for bankruptcy is likely to impact the child support payments you receive. Contact the Emerson Law Firm today for more information about child support and bankruptcy in Illinois.


See Related Blog Posts:

Should I File for Bankruptcy if a Creditor Has Threatened to Sue Me?

Should Retirees File for Bankruptcy?

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