Bankruptcy & Unsecured Debt
Child Support
Child Support and Bankruptcy
We know that considering bankruptcy can be a difficult and emotional decision. We also understand that not knowing if you can make your child support or alimony payments can be an added source of stress.
Fortunately, there are solutions available to help you maintain this support. Here are somee important facts about how bankruptcy, or a consumer proposal, affects your child support or alimony payments.
Can I Reduce My Child Support/Alimony Payments or Defer Them?
No. Child support and alimony payments must be made. If you file for bankruptcy and you have to pay child support or alimony, you will still have to make these payments. Child support and alimony payments cannot be deferred or suspended.
However, if you are behind on your child support or alimony payments, bankruptcy or a consumer proposal can reduce the payments on your other monthly bills and debts, so that you’ll have more money to put towards your child support or alimony.
What Can I Do if I Am Behind on My Child Support/Alimony Payments?
There are a few steps you can take to either reduce or eliminate your unsecured debts:
- You can create an affordable debt repayment plan by filing a consumer proposal. This is a formal proposal to your creditors where you would usually repay only a portion of the unsecured debt you owe. Learn more about how a proposal can help you can take back control of your support payments by visiting our Consumer Proposals page.
- If you determine that you can’t afford to repay any of your debts, filing for bankruptcy could be an alternative. All your unsecured debts will be eliminated, which can make it easier for you to make your alimony or child support payments. Visit our Bankruptcy page for more details about the process.
What If I Am the One Receiving Support Payments?
If you are receiving child support or alimony payments and your former spouse files for bankruptcy, you may submit a claim for the money owed to you and make yourself a “preferred creditor.” Talk to the Licensed Insolvency Trustee (LIT) handling your ex-spouse’s bankruptcy about becoming a preferred creditor and they’ll explain this to you.
Who Can I Speak to About My Child Support/Alimony Payments?
You can speak to one of our local debt help professionals about your options for reducing or eliminating your unsecured debt. Before considering bankruptcy, our LITs will review your situation with you and go over every debt relief option available to help find the best solution to your case. Request a call today for a free, no-obligation assessment.