Can Bankruptcy Eliminate Spousal Support or Child Support Obligations in California
Financial hardship can make it difficult to keep up with monthly expenses, let alone ongoing child or spousal support payments. Many Californians who file for bankruptcy hope the process will provide relief from overwhelming obligations, but when it comes to family support orders, the law draws a very firm line.
Under both federal and California bankruptcy law, child support and spousal support obligations cannot be eliminated through bankruptcy. These payments are considered essential domestic support responsibilities and receive special protection under the Bankruptcy Code. However, there are still legal and financial strategies that can help individuals manage debt while staying current on court-ordered support.
If you are struggling to balance personal debts and family obligations, a skilled Los Angeles bankruptcy lawyer can help you understand your options and develop a plan that protects your rights under both bankruptcy and family law.
Support Obligations and Bankruptcy
When you file for bankruptcy, your debts are divided into dischargeable and non-dischargeable categories. Dischargeable debts can be eliminated, giving you a financial reset, while non-dischargeable debts must still be paid even after the case ends.
Child support and spousal support, known in bankruptcy law as domestic support obligations (DSOs), fall squarely into the non-dischargeable category. Under Section 523(a)(5) of the U.S. Bankruptcy Code, these debts cannot be discharged under either Chapter 7 or Chapter 13.
This means that even if your unsecured debts, like credit card balances or medical bills, are wiped out through bankruptcy, you remain legally responsible for paying any support owed to your former spouse or children.
Why the Law Protects Support Obligations
The reasoning behind this rule is rooted in public policy. Support payments are designed to meet essential needs such as housing, health care, and education for dependents. Discharging those debts in bankruptcy would harm the individuals the law seeks to protect, particularly children and former spouses who depend on those payments.
By making domestic support obligations non-dischargeable, bankruptcy law balances financial relief with family responsibility. The court allows you to reorganize or eliminate other types of debt, giving you more room in your budget to meet your ongoing support obligations.
How Bankruptcy Can Still Help
Although bankruptcy will not erase child support or spousal support, it can still provide important financial relief in other ways:
- Reducing other debts: Bankruptcy can discharge unsecured debts such as credit cards or medical bills, freeing income for court-ordered support.
- Temporarily halting collection actions: The automatic stay that takes effect after filing stops most creditor collections, giving you time to stabilize your finances. (Note: This does not pause wage garnishments or enforcement actions for current child support.)
- Catching up through Chapter 13: In a Chapter 13 bankruptcy, past-due support can be included in your repayment plan, allowing you to pay arrears over three to five years while keeping current with ongoing obligations.
While bankruptcy cannot cancel domestic support, it can help you manage other debts so you can stay compliant with court orders and avoid penalties.
The Difference Between Spousal Support and Property Settlements
It is important to distinguish spousal support (alimony) from property settlements ordered in divorce. Spousal support provides ongoing income for a lower-earning spouse, while property settlements divide marital assets and debts.
Under Chapter 7 bankruptcy, both spousal support and property settlements are typically non-dischargeable. Under Chapter 13, however, some property-settlement obligations, but not spousal support, may be discharged after the repayment plan is complete.
Because these obligations often overlap in divorce judgments, working with an attorney who understands both bankruptcy and family law in California is crucial to protect your rights and avoid missteps.
Coordination Between Family Court and Bankruptcy Court
When divorce and bankruptcy overlap, both courts maintain authority over different issues:
- Family courts handle support, custody, and visitation.
- Bankruptcy courts oversee debt discharge and repayment plans.
Filing bankruptcy during an active divorce can temporarily pause property-division matters through the automatic stay, but it does not stop family court from enforcing or modifying support orders. Attorneys who regularly work in both areas can coordinate these parallel proceedings to prevent delays or conflicting rulings.
Alternative Financial Strategies
If you cannot discharge support obligations, there are still lawful ways to reduce financial pressure:
- Seek a modification: If your income or health has changed significantly, you can petition the family court to modify your support amount.
- Negotiate repayment of arrears: Courts may approve a structured plan to catch up on overdue support without severe penalties.
- Explore non-bankruptcy debt relief: Options such as debt consolidation or negotiated settlements can reduce non-support obligations, freeing income for essential payments.
A qualified attorney can evaluate these strategies to ensure you remain compliant with court orders while regaining financial balance.
Contact Wadhwani & Shanfeld
While bankruptcy cannot eliminate child or spousal support, it can help you regain control of your finances and focus on fulfilling your family responsibilities. The experienced Los Angeles bankruptcy lawyer team at Wadhwani & Shanfeld understands how to use bankruptcy strategically, protecting your income, preserving your assets, and helping you meet your legal obligations.
Our attorneys have decades of experience navigating California bankruptcy law and family court matters, offering compassionate and practical guidance to help you move forward. Contact us today for a confidential consultation.
Source:
S. Courts: Bankruptcy Basics
S. Government Publishing Office: Section 523(a)(5) of the Bankruptcy Code
California Courts Self-Help: Child Support Overview
California Courts Self-Help: Spousal or Partner Support
