When a couple divorces, one of the many changes that take place is the new financial situation for all concerned. Whereas before, one household was supported by two incomes, in the current situation, two households are supported by two incomes. This is especially true when children are involved. The custodial parent bears more of the financial burden of daily care of the children, while the non-custodial parent is assessed with child support payments. Each parent is expected to bear more financial burden on less income.

Under those circumstances, it is not surprising that many people file bankruptcy soon after a divorce. Bankruptcy, of course, does not excuse a non-custodial parent from paying child support, either past due or currently due. What it can do, however, is to manage creditors in such a way that child support payments are, by law, the most important priority for the non-custodial parent to meet. In a Chapter 7 case, where there are assets that are liquidated to pay debts, the first debt discharged is for child support. In Chapter 13, where the court sets up a payment plan, child support obligations are the first to be met through the monthly payments.

One important exception to this rule is when part of the divorce decree mandates support to the former spouse as part of support for the children. This amount may in some cases be discharged since it is not considered direct support to the children. The other exception is if a third party is supporting the children; in a bankruptcy, that third party reserves the right to act as any other creditor to get payment from the non-custodial parent.

The custodial parent may be listed on the bankruptcy proceedings as a creditor. In that case, they may be notified of legal proceedings such as hearings and payments plans. The custodial parent is responsible for protecting the interests of himself or herself and the children in their custody, so it is advisable to meet with attorney familiar with both bankruptcy and child support law.

The non-custodial parent, in finding himself or herself in a bankruptcy action, needs to be clear that they are still expected to pay child support. But if the payments are burdensome, they can request that the payments be lowered. They should not ever take it upon themselves to simply lower payments, however; that should always be left to the courts.

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