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Owe Past Due Support? Chapter 13 Bankruptcy May Help

1 March 2023

Elli Palo

If you've fallen behind on spousal or child support payments, many aspects of your life could be at risk. From legal action, government penalties, and even denial of things like certifications or driver's licenses, support obligors can suffer significantly as long as they remain indebted. Could bankruptcy help you get — and stay — current? It may be able to. Here are some valuable answers to your questions about support and bankruptcy.

Can You Discharge Support?

The most pressing question for many who pay support is whether or not that support is discharged in bankruptcy. The short answer is no. In both Chapter 7 and Chapter 13, support debts are considered priority, or non-dischargeable, debts and will generally be outside the bankruptcy estate. This includes both current and past support. 

What About the Automatic Stay?

One important benefit of bankruptcy is that it comes with an automatic, temporary stay that prevents further collections efforts on nearly all debts. However, don't count on this to prevent anyone from collecting on support. These obligations are among those most commonly exempted from the stay in Chapter 7. The court will likely lift their restrictions if creditors request it. 

Can Chapter 13 Help?

Because Chapter 7, or liquidation, bankruptcy is a one-time discharge of eligible debts, it doesn't directly affect support. However, Chapter 13 can be much more of a help. Known as reorganization, or wage earners, bankruptcy, Chapter 13 allows you to set up a repayment plan over three or five years and pay based on your financial means. 

This repayment plan can include old, unpaid support. By stretching out the total owed for past-due support, you can turn it into a manageable monthly payment. And in the meantime, the receiver and any relevant government agencies are usually barred from pursuing collections as long as you make the agreed-upon payments. 

In addition, the Chapter 13 payment amount is based on your disposable income minus priority debts (which include current support payments). So you will first pay these obligations and then pay what's left to creditors. If support is not your only debt, other creditors get less while you keep up with support requirements. In fact, depending on the amount of current and old support owed, your other creditors may get little or nothing. 

Where Should You Start?

Could bankruptcy be the unexpected solution to your past-due support problems? Find out by meeting with a Chapter 13 bankruptcy lawyer in your state today. With their guidance, you're sure to find the best route to financial stability and the ability to start moving forward in your life. 

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