Chapter 13 Bankruptcy Child Support

Chapter 13 bankruptcy child support differs with the type of bankruptcy filed by the debtor. If he has filed a petition under Chapter 7, it may fail to create any effect on the hearing to collect child support. On the other hand, a petition filed under Chapter 13 will place a stay on all the hearings temporarily as it includes a share in the income of the debtor.

Chapter 13 bankruptcy demands the debtor to allot a portion of his payroll and to retain the property until the completion of the time extended under this petition. Every further action taken by the debtor on the income and the assets require him to inform the trustee as every additional debt influences the debtor’s agreed and approved plan of repayment. The debtor is to inform the Court on any post-filing domestic support obligations and make plans accordingly. Generally, these payments are made through payroll deductions ensuring the timely payment. In the event the debtor fails to compensate the child, the court may place a decree converting the bankruptcy under Chapter 13 to Chapter 7. The decision of the Court to stay or otherwise any action to collect the child support varies with the discretion of the Court.

But in Chapter 7, as the "property of the estate" is utilized to pay off the debts that include all the possessions, money and interests owned at the time the case is filed by the debtor, the income earned by him after the case has been filed does not get included. With the child support money usually paid out of the pay received by the debtor, no stay will hinder the proceedings related to it.

Under Chapter 13, the court discharges the debtor from all debts mentioned in the plan, except for certain exceptions that needs to be met even after extended time. The creditors are prevented from taking any legal action against the debtor who has been discharged. But, this does not include any long-term payments like the amount for child support. This obligation has to be met by the debtor to the extent they are not fully paid under the Chapter 13 plan.