Posts

Domestic Support Obligations In Bankruptcy

By Nick Brown

Experienced family lawyers are adept at helping their clients secure alimony, child support, property settlements and other financial relief. But what happens to these claims when the party obliged to make payments files bankruptcy?

This article takes a look at how domestic support obligations are treated in a bankruptcy case.  The article also highlights some common issues for dispute and ways to protect your client.

What Is a Domestic Support Obligation?

The “domestic support obligation” is a defined term in bankruptcy law, referring to a debt “in the nature of alimony, maintenance or support” that is owed to a current or former spouse or child. In order to qualify, the obligation must be established under a formal agreement, court order or state law.[1]

Common examples of domestic support obligations are alimony and child support. On the other hand, property divisions under equitable distribution orders typically do not qualify. In some instances, the nature of the claim is uncertain which could lead to litigation.

Read more