Child support can be part of a Chapter 13 bankruptcy plan

On Behalf of | May 5, 2023 | Chapter 13 Bankruptcy |

There are a little more than three divorces per every 1,000 Tennessee residents. Financial issues are often a central focus of such proceedings, especially in cases where children are involved. Divorce can sometimes cause insurmountable debt. Other life issues may arise, as well, that make it difficult for a parent to keep up with child support payments. The good news is that a Chapter 13 bankruptcy plan can enable a parent to restructure debt, including child support payments.

To qualify for Chapter 13, bankruptcy, a parent must demonstrate proof of reliable income that is at or above the median average for the state. This program is a valuable financial tool for people who have wages coming in but have been hit by a financial crisis that is causing them to fall behind in payments toward their debts, perhaps including a mortgage, credit card balance, medical expenses or debt associated with a divorce.

Chapter 13 bankruptcy can help a parent catch up on child support

Not every person who falls behind in child support payments is a “deadbeat parent.” Many people encounter financial crises through no fault of their own and simply need additional support to help them get things back on track and to fulfill their obligations as a noncustodial parent. It is better to make use of available debt relief options than to stop making child support payments and risk legal repercussions.

Many parents are able to catch up on child support payments by restructuring payment plans for other debts through a Chapter 13 bankruptcy plan, even though the child support debt itself will not be forgiven. A concerned parent who is facing a financial crisis after divorce that is impeding his or her ability to stay current on child support payments may wish to speak with a bankruptcy law attorney to determine eligibility. An attorney can recommend a program that is the best fit in a particular set of circumstances and can be on hand to help resolve any legal complications that arise.


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