Monday, October 24, 2005

Federal Bankrupctcy Law "domestic support obligations"

With the effects of the 2005 federal bankruptcy reform being as widespread & encompassing as they are, an article in the Sept./Oct. Probate Law Journal of Ohio, which addresses changes in bankruptcy relative to family law, might be helpful to some.

The distinction between alimony, child support, and property settlement obligations have now been merged under a heading called “domestic support obligations,” which include “any obligation owed to or recoverable by, a spouse, former spouse or child of a debtor, child’s parent, legal guardian or responsible relative, or any governmental unit involved in the collection or enforcement of support obligations,” and it includes obligations incurred before or after the filing of a petition for bankruptcy. DSO obligations are also nondischargeable under Chapter 7 filings. ( summary of the priority child support provisions)

Also, the new law requires bankruptcy trustees, “if there is a claim for a domestic support obligation, to provide written notice to the holder of the claim and the applicable state child support enforcement agency.” (See DOJ “trustee program” post).

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