Child Support Obligation and Chapter 7
When a Debtor files a Chapter 7 bankruptcy, they usually want to keep it quiet, especially from an ex-spouse. This is not always possible. If a Debtor files a Chapter 7 bankruptcy and owes child support, the person they are paying child support to must be notified.
The person that received child support should be listed as a priority creditor, even if the Debtor is current with the child support. The Trustee is required by law to send a couple different noticed to the person receiving child support. The notices inform the receiving party of their rights under bankruptcy and to let them know the child support obligation is not dischargeable.
When I ask my clients for the name and address of the person who receives the child support, they are usually very hesitant about giving me the information. They don’t want their ex to know they have to file bankruptcy. I explain that it is not a bad thing to have to file bankruptcy and one of the top reasons people have to file bankruptcy is because of divorce. When they realize their only other option is to not file bankruptcy, they will give the information.
The information the Trustee needs is the actual address of the person entitled to receive the child support. Most people who have a court order to pay child support pay it to the Attorney Generals Office. This is not the address the Chapter 7 Trustee wants. Also, as I have had to tell a couple of my clients, giving the wrong address on person is illegal. They are signing the paperwork under penalty of perjury that all the information given is correct.
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