Frequently Asked Questions
What Happens to Child Support Payments if I Become Bankrupt?
If you receive child support payments as determined by the Child Support Agency, these monies are not included in your bankruptcy and your bankruptcy does not change the requirement of the Child Support Agency for the child support monies to be paid to you. Further, these monies are not included in your income when determining whether you are required to pay income contributions to your bankrupt estate.
If you are paying child support as assessed by the Child Support Agency, bankruptcy does not stop the requirement for you to pay child support, including child support arrears. If you are a high-income earner, your assessed child support amount is added to your income threshold to ensure you do not pay income contributions on the child support monies you are required to pay. For details on the income threshold amount that would apply to you we recommend our article, Wages, Super and Spending which can be accessed here.