Not all debts are treated the same. The law takes some special debts very seriously and you cannot wipe out these debts by filing for bankruptcy. These debts will stay even if you file for bankruptcy - child support, alimony and student loans.

• If I declare bankruptcy, am I still required to pay child support or alimony?
• How much of my earnings can be garnished for failure to pay child support or alimony?
• What other sources of income can be taken if I don’t make child support payments?
• Are there any other “special debts"?

If I declare bankruptcy, am I still required to pay child support and alimony?
Yes. Under federal law, bankruptcy does not forgive or "discharge" payments you owe for child support or alimony. This is true regardless of whether the payments were part of your separation agreement, divorce decree or other court order. 11 U.S.C. §523(a)(5).

How much of my earnings can be garnished for failure to pay child support or alimony?
Maryland law follows the Federal Consumer Credit Protection Act in earnings withholding orders. Md. Fam. Law Code Ann. §§ 10-122, 10-128(a)(2)(i).

The Act allows more of your earnings to be taken for child support or alimony than for ordinary debts. If you do not have another spouse or child to support, up to 60 per cent of your after-tax earnings can be garnished. If you are more than 12 weeks behind when the earnings withholding order is issued, the amount increases to 65 per cent. If you are supporting another spouse or child, the court can order 50 per cent of your earnings garnished, or 55 per cent if you are more than 12 weeks behind. 15 U.S.C. §1673(b)(2). For ordinary debts, the maximum that could be garnished would be approximately 20 to 25 per cent of your earnings. 15 U.S.C. §1673(a).

In Maryland, your employer is allowed to deduct an additional $2 for each deduction s/he is required to make under an earnings withholding order or earnings withholding notice.

What other sources of income can be taken if I don’t make child support payments?
If you fail to make child support or alimony payments, Maryland law allows the person you owe to ask the court for an earnings withholding order, which will take the payments you owe out of your paycheck, some pensions, unemployment benefits, Social Security or worker’s compensation payments. Md. Fam. Law Code Ann. §10-101.

Are there any other “special debts"?
Yes - There are also other special debts that you will owe even after you file bankruptcy. These debts include recent taxes (within the last 3 years) , debts arising out of fraud or willful misconduct, liability for a death or injury as a result of driving while intoxicated, and criminal fines and penalties. 11 USC §523.