Domestic Support Obligations in Bankruptcy
Domestic support obligations are a certain class of debts recognized by bankruptcy law. Knowing what is a domestic support is important in evaluating the effects 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 debt must be an obligation owed to a current spouse, former spouse, or child of the debtor, or to the child's parent, legal guardian, or responsible relative. A governmental unit may also be owed a domestic support obligation.
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.
Domestic support obligations must have been established or subject to establishment before, on, or after filing bankruptcy, by reason of a property settlement agreement, divorce decree, separation agreement, or by an order of a court of record.
A debt will not be considered a domestic support obligation if it is assigned to a nongovernmental entity for a purpose other than collection of the debt or if the debt is assigned involuntarily.
A debtor receives no protection from the automatic stay with respect to domestic support obligations. Collection efforts, garnishments, court orders, and any other attempts to collect the debt can continue.
Domestic support obligations constitute an exception to discharge under the Bankruptcy Code. Also, a Chapter 13 plan must provide for full payment of the domestic support obligation.
If you have identified that you owe domestic support obligations it is important to recognize that bankruptcy will not stop your obligation to pay those debts. If you have fallen behind on your domestic support obligations it may mean that a Chapter 13 is not a viable alternative for you since the domestic support arrears must be paid in its entirety under the Chapter 13 plan.
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 debt must be an obligation owed to a current spouse, former spouse, or child of the debtor, or to the child's parent, legal guardian, or responsible relative. A governmental unit may also be owed a domestic support obligation.
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.
Domestic support obligations must have been established or subject to establishment before, on, or after filing bankruptcy, by reason of a property settlement agreement, divorce decree, separation agreement, or by an order of a court of record.
A debt will not be considered a domestic support obligation if it is assigned to a nongovernmental entity for a purpose other than collection of the debt or if the debt is assigned involuntarily.
A debtor receives no protection from the automatic stay with respect to domestic support obligations. Collection efforts, garnishments, court orders, and any other attempts to collect the debt can continue.
Domestic support obligations constitute an exception to discharge under the Bankruptcy Code. Also, a Chapter 13 plan must provide for full payment of the domestic support obligation.
If you have identified that you owe domestic support obligations it is important to recognize that bankruptcy will not stop your obligation to pay those debts. If you have fallen behind on your domestic support obligations it may mean that a Chapter 13 is not a viable alternative for you since the domestic support arrears must be paid in its entirety under the Chapter 13 plan.
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Before you file bankruptcy or seek any debt solution alternatives, make sure you check out the site of Murfreesboro bankruptcy attorney Alan Alder. Mr. Alder is a Nashville Chapter 7 bankruptcy attorney and is eager to answer your questions.