Does Bankruptcy Wipe Out Child Support or Alimony?
Unfortunately, alimony and child support cannot be wiped out in bankruptcy. Alimony and child support are considered “priority” debts that must be repaid. In other words, the bankruptcy laws view alimony and child support as very important debt that one cannot just wipe out with a bankruptcy.
However, if you are behind on your alimony or child support payments, bankruptcy can be helpful for you. If you are behind and have been threatened to go to jail, you could file a Chapter 13 Bankruptcy, which is a repayment plan. In a Chapter 13 bankruptcy, you repay a portion of your debts over a period of three to five years. At the end of your bankruptcy, you will no longer owe any unsecured debt (credit cards, medical bills) and will be caught up on any debts that you were behind on, such as child support.
A Chapter 13 bankruptcy is helpful for a person who is behind on alimony or child support payments because it helps you get caught up on your payments and will avoid any potential jail time. Other than completing a Chapter 13 bankruptcy you cannot wipe out alimony or child support in bankruptcy.
Rightfully so, child support should not be wiped out; otherwise, it is the child who would ultimately suffer. In cases where the paying parent has no sufficient funds, property, or assets to meet his/her obligation to pay child support, the appropriate remedy is to file for child support modification, decreasing the amount of child support.