QUESTION

The non-custodial parent owes me over $30,000 in back child support, how will this affect my bankruptcy estate?

Asked on Jan 16th, 2015 on Bankruptcy - Idaho
More details to this question:
I am filing for Chapter 7. Right now, I am receiving about $400/month for child support as I am the custodial parent. The non custodial parent owes more than $30,000 in back child support. How will this affect my bankruptcy estate? I do claim the monthly amount I am receiving as income, correct? Do I need to claim any child support received under an exemption? I am using federal exemptions.
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6 ANSWERS

Bankruptcy Law Attorney serving Austin, TX at Law Office of Susan G. Taylor
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Yes, you should claim the arrearage owed; it should be totally exempt.
Answered on Jan 26th, 2015 at 6:01 PM

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There is a federal exemption for any amount of child support arrears, so you should list them on Schedule B and exempt them on Schedule C. The $400 monthly amount you do receive must be reported on Schedule I and on the means test.
Answered on Jan 19th, 2015 at 7:38 PM

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Bankruptcy Attorney serving Las Vegas, NV
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Child support arrears are exempt. This means the trustee cannot go and collect them. You list child support as income but it doesn't count on the means test.
Answered on Jan 19th, 2015 at 7:36 PM

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Bankruptcy Attorney serving Las Vegas, NV at A Fresh Start
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Although child support is an exempt asset, the receipt of child support payments can be considered as income for your household to determine the amount of your plan payments. To adequately answer this question, I would need to understand your goals in attempting to file chapter 13.
Answered on Jan 19th, 2015 at 7:36 PM

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Commercial & Bankruptcy Law Attorney serving Powell, OH at Ronald K. Nims
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Usually, there is no effect on a Chapter 7 bankruptcy from a large back child support obligation. First, there is a conditional exemption for child support in the Federal exemptions. That means that even if the Trustee is able to collect it from the deadbeat parent, most or all of it would go to you which certainly reduces the Trustee's incentive to spend time and money to pursue the money. Second, usually deadbeat parents either simply don't have the money or they have hid the money well. All Trustees know that suing deadbeat parents very seldom nets them any money, so they usually don't bother.
Answered on Jan 19th, 2015 at 7:34 PM

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In Idaho Child Support is protected. The bankruptcy trustee cannot go after it unless you give permission to do so. The protections come from the exemptions. Idaho is required to use state exemptions and cannot use federal, so I am not familiar with the federal exemptions. Make sure your state allows use of the federal exemptions. Yes, you do count the money amount received as income.
Answered on Jan 19th, 2015 at 7:33 PM

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