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Debtor’s Husband Owed Child Support Payments to Wife; Wife Can Keep in Bankruptcy

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September 10, 2015Child support

A debtor filed a Chapter 7 Bankruptcy.   The Debtor was owed approximately $9,000 in past-due child support payments.

The Trustee objected to the Debtor keeping these funds when they were paid to her.   Trustee presented that, since the Debtor was no longer her dependents, those debts were to be turned over to the Trustee.

Outcome:

That is not the case in Bankruptcy, all past-due Child support payments are the property of the Debtor and exempt from the Chapter 7 Bankruptcy.