Bankruptcy and Child Support in Denver

Any attorney will tell you Bankruptcy in Denver should not be used in an attempt to eliminate support obligations as child and spousal support obligations are not dischargeable through bankruptcy in most cases.  An attorney will tell you this applies to a current obligation as well as any payments that are in arrears. Debts that are “in nature of support” for a child are also not dischargeable. “In nature of support” means any debts that the debtor incurred that relate to the childʼs welfare, such as medical bills. Support obligations may be dischargeable in bankruptcy if the support payments have been assigned to a third party or the debt is not “in nature of support” for a child.  Yes, this lingo is confusing, that’s why a bankruptcy attorney in Denver is so helpful. 

When filing a bankruptcy in Denver, whether with an attorney or on your own,  the debtor must disclose all assets, liabilities, exempt property, current income and expenditures, and a statement of financial affairs. This information is a matter of public record and will be useful to the creditor parent and creditor spouse. The debtor should be aware that property that is exempt from the bankruptcy is not exempt from enforcement of child and spousal support and can be taken to meet these obligations.  Ask your attorney what applies to your personal situation.

For the debtor, bankruptcy can be a helpful tool in gaining control of their financial situation. By eliminating other debts through a bankruptcy the debtor would be better able to continue making child and spousal support payments. The debtor should be aware that while filing for bankruptcy puts an automatic stay in place for creditors so that they cannot continue to collect, the automatic stay does not apply to child and spousal support. The debtor must continue making support payments.  If you want to talk to an attorney in Denver about Child Support obligations as it relates to bankruptcy, call one of our attorneys.