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Yes, child support is generally counted as income in the bankruptcy means test.
At first, it might seem unfair to count child support as income.
After all, that money is meant to support your child, not increase your disposable income.
If you receive child support, you must include it as part of your income when completing the means test.
However, there are two important factors that can help balance this:
Both of these can improve your chances of passing the means test.
If you want to estimate your eligibility, you can use this tool here and your existing free Chapter 7 calculator to see whether you may qualify.
If you are the one paying child support, those payments are taken into account when completing the means test.
While they are not subtracted directly from your income, they are treated as a required expense, which reduces your disposable income.
This can:
Because of this, it’s important to report child support payments accurately when completing your bankruptcy forms.
Household size plays a major role in the means test, and it can get complicated when custody is shared.
In general:
There isn’t always a single rule that applies in every situation.
In joint custody cases, some courts may evaluate:
Because this can vary, it’s often helpful to speak with a bankruptcy attorney if your situation isn’t straightforward.
Your household size directly impacts the income limits used in the means test.
The more people in your household:
For example, a single filer has a lower income limit than someone supporting multiple dependents.
That’s why properly counting dependents, including children, can make a meaningful difference in your qualification.
No, child support debt cannot be discharged in bankruptcy.
If you owe past-due child support:
If you file Chapter 13, you can include past-due child support in your repayment plan.
However, you must continue making ongoing payments, or your case may be dismissed.
The bankruptcy means test is one of the most important steps in determining whether you qualify for Chapter 7.
Because child support can affect both your income and your expenses, it’s important to look at your full financial picture.
You can use our free Chapter 7 calculator to estimate your qualification and better understand your options.
If you qualify for Chapter 7, you may be able to eliminate most unsecured debts in just a few months. If not, Chapter 13 or other options may be worth exploring.
Child support is generally included as income in the bankruptcy means test, but it doesn’t automatically hurt your chances of qualifying.
If you receive child support, you can also account for the expenses that come with it.
If you pay child support, you may be able to deduct it from your income.
Because these factors can significantly impact your outcome, it’s important to understand how they apply to your situation before filing.
Start with the calculator above to get a clear estimate and take the next step with confidence.
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