Bankruptcy and Child Support
Good afternoon, everybody. Edward Kelly, Oklahoma City bankruptcy attorney here with another in our continuing series, Three Minutes to Financial Freedom. Today we’re going to discuss what you need to know about child support debt in Oklahoma Chapter 7 bankruptcy.
Child Support Debt in Bankruptcy
Okay, so child support, as you might imagine, is not a debt that can be discharged in bankruptcy. There are certain special debts that are treated this way. Taxes less than three years old, student loans, court fines and costs, and child support are probably the biggest. So it makes sense. Nobody’s going to get out of their child support with bankruptcy.
However, there are some things you can do with it. So if you’re in a Chapter 7 liquidation, by discharging all of your other debt, you can probably free up a substantial amount of your income so that you can start paying off that child support. And although this wouldn’t technically be a part of the bankruptcy, at the same time as doing the bankruptcy, you can file a motion to modify in state court for your child support arrearage. And depending on the other parent, you know, if they’re working with you or even if they’re not, you can try to reduce that to an amount, get a specific payment, and get it to a manageable level.
Chapter 13 Bankruptcy for Child Support Debt
Now there’s also a Chapter 13. So child support, fortunately, jumps to the head of the line of all your debts. Not every single one, but most of them. So in a Chapter 13, if as you recall, you’re paying back what you can for up to 60 months, 36 to 60 months, or three years to five years, you can put all your child support debt first, pay all of your disposable income toward that debt for the five years. In addition, reduce the debt via proof of claim and agreement with the creditor to a definite amount, and at the end of the five years, have that paid off. And then all of your other debt is discharged, assuming that it’s all credit card student loans, I’m sorry, not student loans, but signature loans and other irregular unsecured debts.
This is a great one where you can put debt you won’t get out of anyway, take care of it in the 13, and wipe out everything else. This can be a great solution. The same applies to other debts you can’t get rid of.
Contact Us for a Free Consultation
As always, if you have questions, you can reach me, a bankruptcy lawyer in Oklahoma, directly at oklahomacitybankruptcyattorney.pro or call me at (405) 563-7888.