The non-custodial parent owes me over $30,000 in back child support, how will this affect my bankruptcy estate? 11 Answers as of January 26, 2015

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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Law Office of Susan G. Taylor
Law Office of Susan G. Taylor | Susan G. Taylor
Yes, you should claim the arrearage owed; it should be totally exempt.
Answer Applies to: Texas
Replied: 1/26/2015
Garner Law Office
Garner Law Office | Daniel Garner
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.
Answer Applies to: Oregon
Replied: 1/19/2015
Stephens Gourley & Bywater | David A. Stephens
It should not affect your bankruptcy because child support arrears are exempt in Nevada. You will need to include the regular payment in the means test.
Answer Applies to: Nevada
Replied: 1/19/2015
Just include on Schedule. J the monthly child support amount.? It need not be exempted ad has no affect on the other schedules.
Answer Applies to: Minnesota
Replied: 1/19/2015
A Fresh Start
A Fresh Start | Dorothy G Bunce
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.
Answer Applies to: Nevada
Replied: 1/19/2015
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    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.
    Answer Applies to: Nevada
    Replied: 1/19/2015
    Ronald K. Nims LLC | Ronald K. Nims
    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.
    Answer Applies to: Ohio
    Replied: 1/19/2015
    Idaho Bankruptcy Law | Paul Ross
    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.
    Answer Applies to: Idaho
    Replied: 1/19/2015
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Yes, list the income. The past de amount is exempt to the extent necessary for the support of the debtor. I have never had a trustee try to argue support is not necessary. And, I would argue the support owed belongs to the child if it ever became an issue. You are required to list the amount that is past due.
    Answer Applies to: California
    Replied: 1/19/2015
    John W. Lee, P.C.
    John W. Lee, P.C. | John W. Lee
    The first question that would have to be answered is: why are you using federal exemptions? Virginia opted out of federal exemptions, so there are only very limited circumstances where a Virginia debtor is allowed to use federal exemptions. Generally speaking, you are required to list all income and all assets on your schedules, this would include child support. Virginia law exempts child support payments from creditor collection/garnishment. I would suggest that you contact an experienced local attorney to assist you with this situation.
    Answer Applies to: Virginia
    Replied: 1/19/2015
    John W. Lee, PC
    John W. Lee, PC | Kim A. Lewis
    The monthly support that you receive must be disclosed as income however, the support arrears would be listed as an asset of the estate and claimed exempt under 11 U.S.C. 522 (d) (10) (D).
    Answer Applies to: Virginia
    Replied: 1/19/2015
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