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What happens to child support payments?

FAQs | Bankruptcy and Your Income

Your child support payments are not affected by your bankruptcy.

If you are receiving CSA child support payments, these monies are protected for you. The monies you receive are not included in your income during bankruptcy for income contribution assessment purposes.

If you are making child support payments in accordance with a CSA assessment you will need to continue to make these payments. Child support payments to the CSA will reduce your income during bankruptcy, for income contribution assessment purposes, by the amount of the payments.

If you are behind in your child support payments that debt will not be cleared by your bankruptcy. Any catch-up payments you make will not reduce your income for income assessment purposes, only payments arising in the current period will be deducted from your assessable income for income assessment purposes.

If you would like to discuss your situation in regard to child support payments, give us a call and we will answer your questions.

For further information on bankruptcy, we recommend our articles ‘Pathways to Bankruptcy – Essential Facts’, ‘Life During Bankruptcy’ and ‘The Bankruptcy Option Explained’.

Nicholls & Co have a complementary ‘help desk’ to answer your questions on bankruptcy. Call Nicholls & Co on 1300 060 122 or email helpdesk@nichollsco.com.au.

Alan Nicholls - Registered Trustee

Alan Nicholls’ no obligation help desk

Nicholls & Co provide a free, no obligation ‘help desk’ for people considering bankruptcy – we discuss and explain bankruptcy and answer questions for anyone who is considering bankruptcy. The Nicholls & Co help desk can be accessed by phone  
1300 060 122  or helpdesk@nichollsco.com.au . Alan Nicholls, Registered Trustee in Bankruptcy is also available to answer your questions to enable you to decide if bankruptcy is right for you.