- Bankruptcy and Foreclosure
- Consumer Bankruptcy Lawyers
- Understanding the New Bankruptcy Law
- Child Support and Alimony
One of the significant changes of the new bankruptcy law (BAPCPA) is the priority it gives to the obligations of child support and alimony payments over the debts to other creditors. The obligation to pay domestic support is not dischargeable. Furthermore, the law does not distinguish between domestic support obligations (alimony or child support) and debts that are the result of property settlements; while the latter used to be, in certain circumstances, a dischargeable debt, neither can be discharged under BAPCPA.
Under Chapter 13, there must be a plan so that all priority debts, which obviously includes child support and alimony, can be paid in full. Additionally, in order to be granted any discharges in Chapter 13, the debtor will need to prove that he or she has met all domestic support requirements.
The trustees in Chapter 7 and Chapter 13 bankruptcy cases are required, under the new bankruptcy law, to disclose certain information to a domestic support creditor (usually the ex or separated spouse), including the most recent known address of the debtor.