The Intersection of Bankruptcy and NJ Family Law: What Happens to Support Obligations?
When serious financial strain impacts your life, you might consider bankruptcy to regain control of your personal finances. However, if you are also navigating a separation, divorce, or co-parenting agreement, you may wonder how filing for bankruptcy interacts with your court-ordered family support payments.
At The Law Office of Jordan B. Rickards, located in Milltown, New Jersey, we regularly help clients navigate complex matrimonial and financial legal matters. Understanding how bankruptcy courts view support obligations can help you make informed decisions about your future. Here is what you need to know about the intersection of federal bankruptcy law and New Jersey family law. Schedule a consultation today.
Domestic Support Obligations Are Non-Dischargeable
Under federal bankruptcy law, child support and alimony fall into a special category known as Domestic Support Obligations (DSOs). The bankruptcy code prioritizes family stability over unsecured commercial debt. As a result, support obligations are non-dischargeable. Whether you file for Chapter 7 or Chapter 13 bankruptcy, your legal duty to pay court-ordered support remains fully intact.
The Automatic Stay Doesn’t Stop Support Actions
Filing for bankruptcy triggers an automatic stay that halts most debt collection efforts, foreclosures, and lawsuits. However, the automatic stay does not stop actions to establish, modify, or collect ongoing domestic support payments. Family law proceedings related to custody, parenting time, and support can generally move forward without interruption.
Back Support (Arrears) Receives Top Priority
If you owe past-due support payments, bankruptcy will not erase those arrears. In Chapter 7 bankruptcy, past-due support claims receive first-priority payout from any non-exempt liquidated assets. In Chapter 13 bankruptcy, you can structure a 3-to-5-year repayment plan to catch up on support arrears, giving you a manageable way to resolve back debt without facing immediate enforcement measures from state authorities.
Freeing Up Cash Flow for Family Expenses
While bankruptcy cannot eliminate support debts, it can eliminate dischargeable liabilities like credit card debt, medical bills, and unsecured personal loans. By eliminating these competing financial pressures, you free up disposable monthly income, making it significantly easier to stay current on your family law obligations.
Seeking Support Modifications in Family Court
Bankruptcy courts cannot alter the support terms established in your divorce decree. If your financial circumstances have changed substantially, you must petition the New Jersey family court directly for a formal modification. An experienced family law attorney in New Jersey can help you demonstrate changed circumstances to adjust your obligations downward legally.
SCHEDULE A CONSULTATION
If you need guidance on your rights or support obligations during a financial hardship, turn to a trusted divorce lawyer in New Jersey. The Law Office of Jordan B. Rickards in Milltown, New Jersey, is a dedicated family law firm ready to protect your interests. Contact our divorce law office today to consult with a knowledgeable family law attorney in New Jersey and secure a clear path forward for your child support and alimony needs.
