Can child support be used in a Bankruptcy?

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Child Support and Bankruptcy in Ontario

With a bankruptcy, there are some exclusions that need to be taken into consideration. While bankruptcy will release you from most of your unsecured debts, you are still responsible for any Child support payments, Alimony payments, any debts that arose from fraud, fines/penalties imposed via the courts, and student loans (providing it is fewer than 7 years since you stopped to be a full/part-time student.)

In addition, if child support payments are in arrears and you have filed for bankruptcy, your ex-spouse can then put forward a claim for any monthly amounts that are owed for the past 12 months and any lump sum payments that are in arrears as a preferred creditor. Preferred creditor status will give them first claims to any funds as they become available ahead of the other unsecured creditors. You will remain responsible for any child support payment arrears and ongoing payment requirements after a Bankruptcy or a Consumer Proposal.

If you are having financial difficulties, and are requiring advice, call our offices to a free initial consultation, and we will review your case and help let you know what the best possible options are for you.

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