Today's guest blogger is Christopher McAvoy, a Taylor, Michigan attorney.
A discharge in a Chapter 13 filing does not eliminate any post-discharge child or spousal support payments. These are exceptions to the discharge and if you still owe support after the end of your Chapter 13 case, you have to keep paying until the support order is satisfied. A Chapter 13 may initially affect support payments while the debtor's reorganization plan is worked out.
Support Payments Are A Priority Unsecured Debt
When a debtor files a Chapter 13, he intends to repay some or all of the debt owed to creditors. The ex-spouse, who is owed support and/or a property settlement, is a creditor as odd as that may sound. The debtor comes up with a plan that is proposed to the court and the creditors. The plan lays out which creditor gets what. Each class of creditor will be treated differently depending on if their debt is secured, like a house loan, or unsecured, like a credit card, or an unsecured debt with priority. The ex-spouse to whom support is owed is a priority unsecured creditor and is paid in full over the length of the repayment plan. Any support arrears can be cured and brought current as well.