Child Support Debt & Bankruptcy
How Bankruptcy Affects Child Support and Alimony Payments
Alberta arrears in child support has a special priority in Alberta insolvency matters. The process however provides an opportunity for the payer to restructure a monthly budget allowing arrears to be paid.
Calgary child support payments received as a payee are calculated into your income and as a payer may reduce the amount to be paid in a bankruptcy as a "non-discretionary" expense. This is how bankruptcy affects child support.
We often find that filing a bankruptcy allows the person filing the breathing room to catch up on the arrears because they are no longer burdened with their other debts. Calgary child support debt can then be paid off and the payer can move on with their lives.