Exemption of Child Support Payments

A prospective bankruptcy debtor asked whether child support payments received from an ex-spouse were protected after they were deposited in the debtor’s checking account. I have never researched this issue, but I suspect the money is not exempt in bankruptcy. Future child support payments are not part of the bankruptcy estate. Child support money paid prior to filing and commingled with other banking funds probably could be claimed by the bankruptcy trustee. Florida statutes do exempt proceeds from particular assets as well as the asset itself. For example, proceeds from an annuity if deposited in a bank account remain protected after they are paid to the beneficiary. Proceeds from the sale of homestead is protected under certain conditions. Exempt wages remain protected in wage accounts at banks. Otherwise, proceeds from exempt assets lose their protected status once they are distributed to the debtor and deposited in bank accounts.