Arizona Bankruptcy Law - Child Support
11 U.S.C. 523 provides discharge will not be allowed for debts owed (5) to a spouse, former spouse, or child
of the debtor, for alimony to, maintenance for, or support of such spouse or child, in connection with a
separation agreement, divorce decree or other order of a court of record, determination made in accordance with
State or territorial law by a governmental unit, or property settlement agreement, but not to the extent that -
(A) such debt is assigned to another entity, voluntarily, by operation of law, or otherwise (other than debts
assigned pursuant to section 408(a)(3) of the Social Security Act, or any such debt which has been assigned to
the Federal Government or to a State or any political subdivision of such State.
11 U.S.C. 523(b) further limits dischargeability of child support, by requiring any
payment which may be dischargeable under another exception, is nevertheless non-dischargeable if "discharging
such debt would result in a benefit to the debtor that outweighs the detrimental consequences to a spouse,
former spouse, or child of the debtor."
Arizona Bankruptcy Law - In Practice
Public policy requires governmental support and protection of the rights of children. In cases of financial
hardship, state and federal financial support is provided to children, and in turn, Arizona bankruptcy laws prevent
responsible parents from eliminating liability.
The Federal process of filing necessarily incorporates state law requirements. These state law requirements are
set forth in statutes, rules and case law opinions which frequently alter the operation of law. As a result of
these precedents, Arizona bankruptcy cases are unique to the state, as well as unique to each individual who
files. All alternatives provided by law may not be available because of differing individual financial histories
or prior case filings.
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