subject: The Impact Of Bankruptcy On Children And Child Support In New York [print this page] Filing bankruptcy is a difficult processFiling bankruptcy is a difficult process. But it is not difficult just for the parents, but for their children as well. So what are the potential consequences bankruptcy on the children of bankruptcy filers?
1) A debtor can be presented from contributing money towards their children's college fund or tuition. Though a bankruptcy court in New York will allow for basic expenses like housing and food, they may prioritize your debt over your children's education.
It is strongly recommended that you consult with a New York bankruptcy lawyer to understand more about how your childs education may be affected when filing for bankruptcy.
2) Your children's assets may be subject to the bankruptcy, especially if you were the one who donated money into their accounts or they are in your own name, or even if you've ever used your children's bank account to pay your own bills. A New York bankruptcy attorney, however, can protect these accounts by making sure that they are opened under the Uniform Gifts to Minors Act (UGMA) or the Uniform Transfers to Minors Act (UTMA).
3) New York Child support is protected from bankruptcy. Child support obligations are seen as a priority and therefore are not eligible for bankruptcy debt discharge. If you file for Chapter 7 bankruptcy, child support payments become a top priority when assets are being liquidated. If you file for Chapter 13 bankruptcy, child support payments will be arranged in the repayment plan. In either case, the hope is that ex-spouses find it easier and more able to pay child support since the bankruptcy, by discharging other debt, would be able to lessen their other debt responsibility.
