Can accrued interest on child support payments be discharged in a Chapter 7?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can accrued interest on child support payments be discharged in a Chapter 7?

My wages are being attached for accrued interest on past child support in NM. All minors are emancipated and no current, or past due, child support remains owed, only interest. I have a statement from the state that clearly shows that to be true. I am considering a Chapter 7 filing due to the impact that the bi-weekly garnishment has upon my wages. It is making it impossible to support my current family. Is there any reason that interest on past child support obligations, would be any different that federal taxes owed and eligible for discharge?

Asked on August 25, 2011 Kansas


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

In order to have a clearer answer to your question as to whether or not accrued interest owed on child support payments can be discharged ina chapter 7 bankrupcty filing, it is best that you consult with an attorney who is experienced in such area of the law.

However, my understanding is that certain obligations such as child and spousal support cannot be discharged in a bankruptcy filing in that such a discharge would be contrary to public policy of the United States.

From a practical standpoint, most obligations being paid over time accrue interest. When the obligation is being paid down, the typical payment first goes to pay accrued interest and the balance owed principal. The way I read your question and facts is that even though you have paid the principal of the child support payments, you are being assessed for accrued interest for late payments. In  reality, you might have principal and some accrued interest payments owing.

Another issue is that if a governmental entity is claiming monies owed by you for interest accrued on child support payments, you might not be able to discharge an obligation to a governmental entity in a Chapter 7 bankruptcy filing.

You should consult with a bankruptcy attorney.

Good luck.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption