What does domestic support obligation mean in bankruptcy law?
Domestic Support Obligation ( Bankruptcy) Law and Legal Definition. (C) established or subject to establishment before, on, or after the date of the order for relief in a case under this title, by reason of applicable provisions of-- (i) a separation agreement, divorce decree, or property settlement agreement;
What is the legal definition of domestic support?
Domestic Support Obligation ( Bankruptcy) Law and Legal Definition. (B) in the nature of alimony, maintenance, or support (including assistance provided by a governmental unit) of such spouse, former spouse, or child of the debtor or such child's parent, without regard to whether such debt is expressly so designated;
Do attorney fees qualify as domestic support obligations?
The United States District Court case in the Western District of Oklahoma, Tucker v Oliver, considered whether an award of attorney fees qualifies as a domestic support obligation within the meaning of 11 USC 101 (14A), making such obligation excepted from discharge under 11 USC 523.
Can I withhold income for domestic support in bankruptcy?
However, bankruptcy code section 362 (b) (2) (C) allows the “withholding of income that is a property of the estate or property of the debtor for payment of a domestic support obligation under a judicial or administrative order or a statute.”
What are domestic support obligations?
In short, a domestic support obligation is any ongoing payment that a person is obligated to pay to their child or former spouse because of a divorce or separation.
What is debtor's declaration regarding domestic support obligations?
Part IV of the Domestic Support Obligation Form states the Debtor's Signature. By signing the Form, the Debtor is asserting under Penalty of Perjury, that the representations he has made in answering the former Parts of the Certificate, are True and Correct, to the Best of the Debtor's Knowledge and Belief.
What is domestic support obligation?
If a debt is classified as a domestic support obligation, the Chapter 13 debtor must cure any delinquencies during the course of the Chapter 13 bankruptcy. In addition, the debtor must make any ongoing, post-petition payments pursuant to the domestic support obligation.
What is domestic support?
Domestic support obligation is broadly defined to include any debt that accrues before or after the filing of the bankruptcy, including any interest that accrues on nay debt that is recoverable by the spouse, former spouse, or child of the debtor, or the child’s parent, legal guardian, or caretaking relative, or a governmental unit.
How long does domestic support last in bankruptcy?
However, domestic support obligations that are assigned to a governmental unit may be paid less than the full amount, or 100%, of the obligations, in a Chapter 13 bankruptcy, provided the debtor commits all of his disposable income to the Chapter 13 plan, over a period of five years. Bankruptcy code section 523 (a) (18) governs domestic support ...
What is priority claim?
A priority claim must be paid in full pursuant to the debtor’s Chapter 13 plan under bankruptcy code section 1322 (a) (2), and a priority claim must be paid before any creditors with a lower classification of claim, such as general unsecured creditors. Other benefits accrue to a claimant holding a domestic support obligation claim in ...
How to determine if a debt is domestic support?
In determining whether a debt is a domestic support obligation, one should first look to the objective criteria contained in section 101, including the identity of the recipient or payee, what type of instrument created the obligation, and whether the obligation has been assigned.
Can a domestic support debtor file for bankruptcy?
Additionally, the person owed the domestic support may seek the dismissal or conversion of the Chapter 13 bankruptcy if the debtor is delinquent on any post-petition domestic support obligation. Finally, the debtor will not receive a discharge in a Chapter 13 bankruptcy unless he or she is current on any such support obligations, ...
Is domestic support a non-governmental entity?
Such obligations can be considered to be domestic support obligations regardless of whether such obligations are so named domestic support obligations. If the debt is assigned to a non-governmental entity, such debt is not a domestic support obligation unless the obligation is voluntarily assigned by the spouse, former spouse, ...
What is domestic support obligation?
In 2005, Congress revised the federal Bankruptcy Code and introduced the term “domestic support obligation.” In short, a domestic support obligation, or DSO, is a debt “in the nature of alimony, maintenance, or support” that accrues before, during or after your bankruptcy case is filed and is owed to a family member or governmental unit. The DSO must be established by a separation agreement, divorce decree, property settlement agreement, or other court order. A more complete definition is found in section 101 (14A) of the Bankruptcy Code.
Can a DSO be discharged?
DSO’s are not dischargeable. In many cases, the protections of the automatic stay do not apply to stop enforcement of a DSO. This means that not only will your bankruptcy not discharge your child support or alimony obligation, but you won’t even get a temporary break from an enforcement action, like a garnishment or contempt citation. Enforcement of a DSO is temporarily stayed if the collector attempts to take property of the bankruptcy estate to satisfy the DSO. For instance, future wages during a Chapter 13 bankruptcy are property of the bankruptcy estate and are protected.
What is a co-debtor stay?
11 U.S.C. §1301 (a) Creditors may not pursue your client on a consumer debt without first obtaining relief from stay. This does not apply to any joint debt that may have been commercial in nature.
Does automatic stay in place apply to divorce?
The automatic stay put in place to protect the debtor does not apply to your client. Creditors are free to pursue your client on any jointly held debt even though the debtor may have agreed in the divorce decree to be responsible for that debt.
