Navigating Child Support and Bankruptcy
If your ex-spouse has filed for Chapter 13 bankruptcy and owes you child support arrears, you may be wondering, Will I still receive the money owed to me? The short answer is yes—child support is considered a priority debt and is not dischargeable in bankruptcy. Let’s explore what this means for you, how the process works, and what steps you should take to ensure your rights are protected.
Understanding Child Support in Bankruptcy
Priority Status of Child Support Arrears
Child support is a unique type of debt under bankruptcy law:
- Non-Dischargeable: Neither Chapter 7 nor Chapter 13 bankruptcy can erase child support obligations.
- Priority Debt: These debts are treated with the highest importance during the bankruptcy process, ensuring they are paid before most other debts.
If you are owed arrears, you will receive them; however, the method of payment may vary depending on how the bankruptcy plan is structured.
How Child Support Is Addressed in Chapter 13 Bankruptcy
The Role of the Bankruptcy Trustee
In Kansas and Missouri, bankruptcy trustees take child support obligations very seriously. Their responsibilities include:
- Notifying Enforcement Agencies: The trustee often contacts Child Support Enforcement (CSE) to ensure they are aware of the bankruptcy filing.
- Ensuring Compliance: Trustees prioritize child support payments in the Chapter 13 repayment plan to avoid delays or missed payments.
Proof of Claim: Securing Your Right to Payment
To ensure arrears are properly addressed:
- Creditor Filing Requirement: A creditor must file a Proof of Claim to assert their right to payment in the bankruptcy case.
- Child Support Enforcement (CSE): In most cases, the agency enforcing the child support order handles this process.
- Income Withholding Orders (IWO): If an IWO is already in place, the CSE may not file a claim, as payments are usually handled directly by the employer.
What You Should Do If You’re Not Receiving Payments
Check the Chapter 13 Plan Details
Review your ex-spouse’s repayment plan to confirm child support arrears are included. If it seems they aren’t being addressed:
- Contact the bankruptcy trustee for clarification.
- Reach out to your local CSE office to ensure enforcement is ongoing.
Address Employer Issues
Sometimes, employers mistakenly stop processing income withholding orders due to the automatic stay triggered by bankruptcy. If this happens:
- CSE can reissue the IWO to the employer.
- This ensures child support payments continue uninterrupted.
Contact CSE for Guidance
Only a CSE attorney can determine if a Proof of Claim should be filed or if additional steps are needed to enforce payment. If you’re concerned about arrears during your ex-spouse’s bankruptcy, don’t hesitate to contact your CSE office.
What Happens If Payments Are Delayed?
If you experience delays, remember:
- Child support is protected under federal law, and the system is designed to prioritize your payments.
- Any issues can often be resolved by working with the bankruptcy trustee or CSE to enforce the debt.
Questions to Consider:
- Have you reviewed the Chapter 13 repayment plan for your ex-spouse?
- Is your local Child Support Enforcement office actively involved in your case?
- Are income withholding orders still in effect, or do they need to be reissued?
Take Action Today to Protect Your Child Support Rights
If you’re concerned about receiving child support arrears during your ex-spouse’s bankruptcy, don’t leave it to chance.
