If you are required to pay child support payments and you find yourself falling behind in your obligations, you may be shocked to find out the penalty for failing to make regular child support payments. Your employer may be obligated to take a portion of your pay check in order to pay off the arrears. Another possible penalty is that you could lose your driver’s license and will not be able to have your license reinstated until you are fully caught up with arrears. When you find yourself more than three months behind in child support and find out your license is suspended as a result, where do you go from there?
One possible option to assist in helping you get back on track is to consider filing a Chapter 7 Bankruptcy. While past due child support is not dischargeable under a Chapter 7 Bankruptcy, the discharge of your other debts will free up additional funds that will allow you to get caught back up on your child support obligations. As child support is considered a “priority” debt under Chapter 7 bankruptcy codes, other debts that are unsecured or smaller in nature will be removed from your credit history, allowing you to be able to focus on the debts that will not simply vanish.
While child support is not dischargeable under Chapter 7 bankruptcy laws, you are able to include the total of child support arrears into your Chapter 13 bankruptcy which will allow you to repay the amount owed over a 3-5 year payment. The good thing about adding the arrears into a Chapter 13 bankruptcy plan is that your license will be reinstated as a result of being required to pay the pat due child support.
Perhaps one of the biggest frustrations of parents who owe large amounts of child support arrears is that they need their vehicle and their license in order to work to be able to earn enough to pay the child support, yet find themselves without a valid license and are unable to work. Thankfully, filing for a Chapter 7 bankruptcy and having most debts discharged will allow you to pay off the child support faster, allowing you to be one step closer to having your license reinstated. In the alternative, filing for Chapter 13 bankruptcy will allow you to have your license reinstated but you will need to make sure you are able to financially afford making payments to the Bankruptcy trustee for the next 3-5 years.
Obviously, if you are deciding on whether to file a Chapter 7 bankruptcy or a Chapter 13, there are many considerations to take into account. If you are unsure as to which chapter would be the most beneficial to your individual situation, meeting with a bankruptcy attorney in Tinley Park or Park Ridge to discuss whether a Chapter 7 bankruptcy or a Chapter 13 will be the most beneficial should be your first step. You will want to make sure that you are adequately represented while navigating the rules and regulations of both the Bankruptcy court as well as the motor vehicles commission once it’s time to get your license back.