DOMESTIC SUPPORT OBLIGATIONS IN CHAPTER 13 BANKRUPTCY
While bankruptcy is an excellent way to eliminate debts and start fresh, some debts cannot be discharged. Domestic support obligations, such as alimony or child support, are debts that cannot be discharged.
Domestic support obligations are also treated differently than other debts in a couple of other ways.
First, they are priority debts. That means the amount of the obligation that is owed as of the date of the filing of the case must get paid back in the Chapter 13 plan. If someone files bankruptcy, and is behind 10 payments of $500.00 per month, then his bankruptcy plan must provide for the repayment of the $5,000.00 owed.
Second, the Debtor must also continue to make ongoing domestic support payments directly to the appropriate party. For example, if a Debtor is curing the delinquency of 10 payments at $500.00 per month through the plan, the Debtor must also be current on all support payments due after the case is filed. The Debtor must attest to being current both before his plan can be confirmed (approved), and before he or she receives the discharge of debts.
For these reasons, someone considering bankruptcy needs to pay careful attention to his or her support payments and needs to be able to document same accordingly.
This blog was written by Attorney Jeremy Iskin Esq. of The Dellutri Law Group, P.A.. Mr. Iskin handles the Ch. 13 Bankruptcy cases for the firm.
