Can overdue child support and spousal support be discharged?

Debts such as child support, spousal support, student loans and tax debts generally cannot be discharged in any chapter of bankruptcy in Arizona. However, the Chapter 13 bankruptcy process may be a helpful choice when filing for bankruptcy because it will allow the debts to be repaid over 3-5 years in a payment plan that is tailored to your budget.

Chapter 13 bankruptcy does not necessarily eliminate overdue child support or spousal support, but it does provide a way to get caught up and to repay the debts in full. What is even more helpful, Chapter 13 bankruptcy protection will stop any harassment or garnishment that you may be facing. The bankruptcy process will provide time to restructure the debt and complete a repayment plan, which will get you set up for handling the support payments going forward if they are still required.

An experienced AZ bankruptcy law firm can help you determine if Chapter 13 bankruptcy is the right filing for your situation, or if there are other options that might better fit your circumstances. If your debts included overdue child support or spousal support, it is especially important to consult with a bankruptcy lawyer before you file for bankruptcy. These debts will probably be repaid in full, and will be required to be paid until the end of the court ordered period. It is in your best interest to develop a solution that combines repayment with planning for the future.

The Arizona bankruptcy laws exist to help people get out from under the burden of overwhelming debt, even when “getting out from under” means creating a plan for repayment. A Chapter 13 bankruptcy filing might at least provide for more time and less stress while you work through a repayment plan on the debts that cannot be discharged in bankruptcy, such as spousal support, child support, student loans, or taxes.