The Short Answer
Yes — child support and alimony count as income in bankruptcy. Both are included in the six-month look-back period used to calculate your Means Test, which determines whether you qualify for Chapter 7 or must file Chapter 13. If those payments push your household income above the NC median for your household size, you may be required to file Chapter 13 instead. You must disclose any domestic support obligations you receive to your attorney before filing.
Before you file bankruptcy your attorney will ask you for verification of your last six months of income as a factor to determine Means Test qualification. The Means Test is a household income limit you must fall below according to the number of household occupants in order to qualify for a Chapter 7 bankruptcy.
Child support and alimony are considered income and can greatly impact your ability to qualify for the Means Test. Income from child support or alimony may put you over the Means Test limit causing you to file a Chapter 13 bankruptcy instead of a Chapter 7 bankruptcy.
In addition to having an impact on your Means Test calculation child support and/or alimony will also be considered when determining your monthly budget moving forward. It’s important that you discuss any form of domestic support obligation (child support or alimony) you receive with your attorney before filing your bankruptcy.
Key Takeaways
- Child support and alimony are counted as income for the bankruptcy Means Test, not excluded like some people assume.
- The Means Test looks at your average monthly income over the six months before you file, so even temporary support payments can affect your eligibility.
- If support income pushes you over North Carolina's median income limit for your household size, Chapter 7 may not be an option and Chapter 13 would be required instead.
- Child support and alimony also factor into your ongoing monthly budget calculation inside a Chapter 13 plan, affecting how much you pay creditors each month.
- Failing to disclose domestic support income to your attorney before filing can lead to serious problems with your case, including dismissal.
- Always tell your attorney about every source of income — including irregular or informal support payments — before your bankruptcy is filed.
Attorney Insight
The mistake I see most often is people not mentioning child support or alimony because they don't think of it as "real" income — it feels more like help from an ex-spouse than a paycheck. But the bankruptcy code treats it exactly like wages for Means Test purposes, and a few hundred dollars a month in support can be the difference between qualifying for a Chapter 7 and being pushed into a 36-to-60-month Chapter 13 plan. Here in North Carolina, the trustees are thorough — they will match your bank statements to your disclosed income, and unexplained deposits that look like regular support payments will get flagged. Tell your attorney everything upfront so we can run the numbers accurately before anything gets filed.
