What effect will a Bankruptcy have on a pending state court hearing to collect child support or spousal maintenance?
The effect depends upon which chapter you file. A Chapter 7 will probably have no effect upon state court hearings to collect child support, but a Chapter 13 will probably stop the hearings, at least temporarily. Creditors are stopped from collecting debt when you file a bankruptcy because of a section of the Bankruptcy code which stops, or stays, all creditor’s collection activities including pending court actions. However, the code excludes actions to collect child support or spousal maintenance from the stay, unless the collection is from “property of the estate.” [ 362(b)(2)(B)] In Chapter 7, “property of the estate” refers to all of your possessions, money and interests you own at the time the case is filed. (This is the property which the trustee may take to pay your creditors.) Money which you earn after the case is filed is not property of the estate. Since the child support will probably be collected from your pay, there is no restriction on state court hearing. In Chapter 13
Related Questions
- If I have a court ordered obligation for spousal support or child support, can I have a binding verbal agreement to modify the amount without changing the order?
- What effect will a Bankruptcy have on a pending state court hearing to collect child support or spousal maintenance?
- Does filing bankruptcy stop any hearing about child support in family court?
