Bankruptcy and Domestic Support Obligations

Pressing debt concerns such as money owed to credit-card companies or healthcare providers can often be alleviated by filing for Chapter 7 bankruptcy. In most cases, these types of debts can be discharged if the filing party qualifies under the means test and abides by legal directives. However, certain debts cannot be eliminated through a Chapter 7 proceeding, including past due child support and alimony.

Known collectively as domestic support obligations, money owed under a court order to provide for one’s children or support a former spouse remains collectible, even if other debts are discharged. This holds true both for arrears and ongoing payment responsibilities. Unlike other measures related to alleged nonpayment, the automatic stay does not halt enforcement actions associated with child and spousal support. 

There are ways that a Chapter 7 bankruptcy can offer relief for individuals struggling with domestic support obligations. Stopping collection actions might give a filer the chance to catch up on alimony and child support without having to worry about having their utilities cut off if they are behind on those bills. Once the proceeding is completed and nonexempt debts are discharged, an individual can use freed-up funds to address what they owe in alimony and child support.

Another option for people with significant debt stemming from domestic support obligations is Chapter 13 bankruptcy. Under this process, a repayment plan is formulated based on a filer’s specific recurring expenses and income. By spreading out one’s overall debt burden according to a schedule lasting three to five years, it can be easier to pay back domestic support arrears completely while meeting other needs. If you abide by the terms of the Chapter 13 plan, any remaining nonexempt debts, such as credit-card balances, will be discharged at the end of the schedule. 

Every case is fact-specific. Jeff Field & Associates helps clients structure Chapter 7 and 13 filings to comply with rules relating to domestic support obligations, cure arrears where possible, and avoid pitfalls that can jeopardize a discharge. Reach out to us for a confidential consultation about your options by calling 404-381-1278 or contacting us online. We have six Georgia offices in Douglasville, Gainesville, Bogart, Lawrenceville, Marietta and Decatur.