Domestic Support Obligations in the Bankruptcy Code
Aug 14th, 2009 by Alan Alder
Domestic support obligations constitute a very important type of debt in bankruptcy law. It is important to know what constitutes such an obligation in determining the effect filing bankruptcy will have on you.
The timing of a domestic support obligation is unimportant under the bankruptcy code. A domestic support obligation can arise before, during, or after the filing of a bankruptcy. Interest is included as part of the obligation.
A domestic support obligation must be owed to a spouse, former spouse, or child of the debtor or the child’s parent, legal guardian, or responsible relative. The obligation can also be owed to a governmental agency.
For a debt to constitute a domestic support obligation it must be a debt owed on the basis of alimony, maintenance, or support of a current spouse, former spouse, or child of the debtor or the child’s parent. The term or terms applied to the debt are unimportant in determining if the debt is a domestic support obligation.
The debt must have been in force or subject to be enforced before, on, or after filing a bankruptcy petition by reason of a divorce decree, separation agreement, property settlement agreement, or by an order of a court of record.
No debt will be treated as a domestic support obligation if it is assigned to a nongovernmental agency unless the obligation is assigned voluntarily and assigned solely for the purpose of collection the obligation.
When you file a bankruptcy no automatic stay goes into effect with respect to domestic support obligations. Garnishments, court orders, collection efforts, etc. can continue as they relate to any domestic support obligation.
Domestic support obligations cannot be discharged in Chapter 7 or Chapter 13 bankruptcy proceedings. In addition, a Chapter 13 plan must provide for full payment of the domestic support obligation.
Before filing bankruptcy it is important to realize that your domestic support obligations will be largely, if not entirely, unaffected by your filing. It may also mean that a Chapter 13 is not possible if you have fallen far behind on your domestic support obligations since the debts must be paid in full under the Chapter 13 plan.
