- 11
- Aug
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.
Under the Code for a debt to be a domestic support obligation it must be owed to a spouse, former spouse, or child of the debtor or to the child’s parent, legal guardian, or responsible relative. The debt may also be owed to a governmental unit.
A domestic support obligation must be debt owed on the basis of alimony, maintenance or support of a spouse, former spouse, or child of the debtor or the child’s parent. The name applied to the debt does not matter.
The obligation must have been established or subject to establishment before, on, or after filing bankruptcy, by reason of a separation agreement, divorce decree, or 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.
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 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.
