Is child support considered income to the courts in bankruptcy?

I am a single mother who has been out of work for 10 months. At present, my only income is the child support paid by my son’s father. While I’ve been out of work, I’ve gotten very behind on paying my credit cards and car loan. I’m looking into declaring bankruptcy, but I’m worried that if I do, some of that support may be taken for my creditors.

Answers

Fortunately for you, several kinds of incomes are considered exempt in bankruptcy proceedings, and one of them is child support. Under federal law, in a bankruptcy, the following cannot be considered or taken for the benefit of creditors:

The debtor's right to receive— alimony, support, or separate maintenance, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor; child support would fall under that category, so under federal law, it should be exempt.

Bankruptcy is a little different, however, from many other areas of law, in that while it is created by federal law, Congress specifically gave the states the right to set different rules for exemptions—usually more generous, so if your state has set its own rules, they should be at least as good, if not better, for you. Still, it’s important to consider state bankruptcy rules and exemptions as well, which is why, if at all possible, you should consult with a bankruptcy attorney before taking such an important step. Good luck.

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