Domestic Support Obligations in Bankruptcy

January 13, 2020

Guest post written by Christina Vilaboa-Abel, Esq. of Cava Law. 

The intersections between family law and bankruptcy are quite a few, but the most common is the common misconception that domestic support obligations, such as child support and bankruptcy obligations, are somehow dischargeable. In reality, these debts remain your responsibility even after a bankruptcy discharge.

To be clear, the Bankruptcy Code does not allow for child support or alimony payments to be eliminated in a bankruptcy proceeding. In fact, the Bankruptcy Courts take extra precautions to assure this kind of debt is properly treated when a bankruptcy is filed, however what a lot of people do not research further is that bankruptcy has other ways to give debtors a fresh start and get their finances back on track. Most people think of bankruptcy as simply elimination of debt, like in Chapter 7 bankruptcies, however bankruptcy law has other chapters that help Debtors find relief.

For example, if a Debtor is behind on child support or alimony and files a Chapter 13 bankruptcy, any arrears owed on non-dischargeable debt, such as this kind, can be cured and the Debtor can be brought current on their obligations. However, to stop the cycle of debt, you may need professional Florida child support representation to address support arrears and enforcement actions that continue regardless of your bankruptcy status. This sort of debt negotiation within Chapter 13 bankruptcy plans is quite common and can be done with all sorts of non-dischargeable debts, such as child support, alimony, and debt owed to the IRS.

Understanding the underlying child support payment calculation is also important when evaluating repayment options, as the original support amount is based on Florida’s statutory income guidelines.

In fact, the Southern District of Florida has already taken innovative steps to address other non-dischargeable debts. The court established a Student Loan Program (SLP) to provide Chapter 13 debtors with a forum to explore feasible repayment options with lenders. This mirrors the structured approach used for alimony in Florida, where the goal is to balance the debtor’s need for a fresh start with the legal requirement to satisfy priority obligations.

Bankruptcy, especially using Chapter 13, has been a useful tool for many when it comes to getting a fresh start, post-divorce, and making sure all financial obligations are met.