Friday, April 6, 2012

Child Support and Bankruptcy

Warren Sapp, a current analyst on NFL Network and former Buccaneer and Raider has filed for bankruptcy.   He filed for Chapter 7, which is the liquidation one, not the one where you set up a payment plan.   I don't do bankruptcy (too much math) so I cannot get into the ins and outs of the filing.   But one thing is interesting, he owes the IRS approximately $900,000.   He also owes --- wait for it -- child support in the "hundreds of thousands of dollars" according to the PFT article.   Interesting.

You see, child support is not dischargeable in bankruptcy.   That means, you can't sell your assets, pay what you can on your child support and forget about it.   Child support is for the support of the child.   If it could be discharged in bankruptcy, every person who owes child support would just file for bankruptcy.   Then be free forever from paying it.   Or at least the arrears.   It would be against public policy to let the person get away with it.  

Here is what I really don't get.   Sapp has rought $6.45 in assets and only $6.75 in debts.   He also currently has a job (the contract expires in August 2012).   All of this is according to PFT.    Why is he filing bankruptcy?   Most of his debt is not dischargable in bankruptcy anyway, so he will still owe the money.   Why not work out the other debts and move forward?   Why not control your spending?   (note to Sapp, you are not making millions as an athlete anymore).    I just don't see how a liquidation bankruptcy really helps him in the long run.  

Especially as he will still owe the child support.   If the kids are young enough, the child support obligation will be ongoing (child support ends at 18 in Maryland, generally, no college payments required).   So, if he doesn't get his spending under control, he will be right back in debt.  

Child support does not go away.  


  1. Bankruptcy filing will help you in getting rid of different types of unsecured debts but it won’t help you in getting rid of your child support debts, IRS taxes, student loans, etc. Thus, if you’re facing problem in paying the child support dues, bankruptcy filing is not the option to go for. So, before you file bankruptcy, you should contact your bankruptcy attorney and get to know about the debts that you will get a discharge from. It is always recommended to contact an attorney before filing bankruptcy and to not go for pro-se filing.

  2. I like your post regarding to Child Support and Bankruptcy.Especially this for family law miami .Child support does not go away.