Bankruptcy on its own already comes with many challenges, let alone when you combine bankruptcy with child custody in NY. Whether you already have a custody arrangement or are in the middle of custody proceedings, you will need to know how bankruptcy can affect custody and what you can do about it.
At Grady BK, PLLC, our goal is to provide our New York clients with straightforward legal guidance as they navigate the bankruptcy process. For most people, filing for bankruptcy can feel very overwhelming and stressful, which is why we are here to help every step of the way. In this article, we will go over the basics of bankruptcy and child custody in NY and what you should expect.
Bankruptcy’s Limited Role in Custody Decisions
A common concern many people have in New York is that their bankruptcy case will negatively impact custody decisions. However, the good news is that these are two separate legal processes.
Custody is handled in family court and follows a completely different set of laws. Whereas bankruptcy is handled in bankruptcy court, which doesn’t interfere with any type of parental matters.
There are instances where bankruptcy may come up during custody arrangements, but the impact of this is usually quite limited. And even if bankruptcy does have a slight impact on your custody arrangement, this is never going to disqualify you from your parental rights in NY.
Financial Stability and Custody Evaluations
Despite the fact that different courts handle bankruptcy and custody proceedings, there are times when certain aspects can overlap. The most common example of child support impacting bankruptcy in New York is during custody evaluations or custody proceedings.
Whether you are just beginning to create child custody arrangements or adjusting arrangements already in place, finances usually come into the picture. The family court will analyze the finances of each parent to determine their ability to provide for the basic needs of the child. This isn’t necessarily focused on how much income each parent is bringing in, but is more focused on the consistency and dependability of the financial resources.
So, there are instances where filing for bankruptcy could reflect poorly on your financial abilities. To offset this, you should be prepared to provide proof that you are still able to meet your child’s basic needs on a consistent basis.
It’s also a good idea to get representation from a bankruptcy attorney in New York who can protect your rights and help you throughout the bankruptcy process.
Bankruptcy and Child Support
Another thing you need to keep in mind when you file for bankruptcy and have custody arrangements is that child support is not a dischargeable debt. This means that child support payments will still be a requirement, whether you file for Chapter 7 or Chapter 13 bankruptcy.
Also, child support is not subject to the automatic stay that is put into place when you file for bankruptcy.
The automatic stay is something that is automatically initiated when you file for bankruptcy that protects you from collection efforts from creditors. But it will not halt any domestic support obligations. It also won’t protect you from any collection efforts if you are behind on your child support payments.
How to Manage Bankruptcy and Child Support
As you can see from what we have already discussed, bankruptcy generally does not have much of an impact on child custody or child support. This extends as far as not providing any protection from child support obligations or collection efforts.
Because child support is such an important financial responsibility and isn’t subject to the automatic stay, you need to have a plan in place before filing for bankruptcy. Here are some tips you can use to help you manage and prepare for bankruptcy and child support:
- Prioritize payments: When filing for bankruptcy in New York, you need to create a list of the most critical payments you will still be responsible for. Your child support payments should be included on this list so that you do not fall behind, as this can leave you vulnerable to severe legal consequences.
- Be straightforward: If you have child support obligations and you are filing for bankruptcy, you need to be straightforward with the child support enforcement agency. They may be open to working with you and your lawyer, coming to an agreement on a realistic payment plan.
- Child support modification: If necessary, you may also need to request that your child support order be modified if your financial situation has changed. Requesting modifications can help you get a lower child support order that is more feasible with your financial situation post-bankruptcy.
Additionally, you should get the help of a bankruptcy attorney as soon as possible before you start the bankruptcy process. An attorney can help you follow the necessary steps when filing for bankruptcy, as well as making arrangements so that you can keep up on your child support payments.
FAQ
Can bankruptcy affect my custody arrangement?
Bankruptcy has no direct impact on custody arrangements, as custody goes through family court. However, your finances will usually come up during custody arrangements, and bankruptcy could impact your perceived financial stability.
Does bankruptcy stop child support payments?
No. Child support is a critical responsibility and isn’t subject to the automatic stay when you file for bankruptcy.
New York’s Top Compassionate Bankruptcy Attorney
Navigating bankruptcy and child custody in NY comes with a unique set of challenges, but it is still very doable. At Grady BK, PLLC, our attorneys are here to provide one-on-one guidance, no matter where you are in the bankruptcy process. We help to provide clarity, breaking down the complexities of bankruptcy so that you understand how this will impact your parental responsibilities.
At Grady BK, PLLC, all of our clients can expect to get the one-on-one attention they need, as we prioritize treating each of our clients as though they were our only client. So, whether you have questions or concerns about the bankruptcy process, we are here to help.
Contact us today at 315-299-9005 to discuss your situation with a bankruptcy attorney in New York. Our team at Grady BK, PLLC, is here to answer any questions you may have.
