Sections of Texas Bankruptcy Code
Property 41.001
The Texas bankruptcy law exempts child support and alimony money received by a debtor up to the amount needed to support the debtor and his/her dependants. What this means is that if a debtor files for bankruptcy, the trustee cannot use child support or alimony payments as long as those payments are needed to pay for housing, food, utilities and other basic needs of the debtor and his/her dependents.
For example: If a debtor filing for Chapter 7 or Chapter 13 bankruptcy is unemployed with expenses of $1200 a month and receives child support and/or alimony payments of $600 a month, a bankruptcy trustee mostly likely would not seize the child support money to repay debtors. However, if a debtor filing for bankruptcy earns a substantial amount of money in addition to receiving child support and/or alimony payments, the bankruptcy trustee may determine that the child support and/or alimony payments are not necessary to support the debtor and his/her dependents, in this case the child support and/or alimony may not be considered exempt under the Texas bankruptcy code.
Before filing for bankruptcy discuss the exemption status of child support and/or alimony payments with a Dallas- Fort Worth bankruptcy attorney.