What is a Domestic Support Obligation in bankruptcy?

Domestic Support Obligation is defined under the Bankruptcy Code as any debt incurred that may be recovered by a spouse, former spouse, child, or government agency as alimony, child support or maintenance. This is in pursuant with the stipulations stated in a separation agreement, divorce decree, property settlement agreement, administrative order, or court order. This kind of financial obligation may be in order after the filing of a bankruptcy petition. Domestic Support Obligations in a Chapter 7 bankruptcy may not be discharged particularly if the amount is used for supporting the spouse, former spouse or child. Even the debtor’s obligations on attorney’s fees that are owed to the attorney of the former spouse also cannot be discharged as part of the spousal support or alimony.

In Chapter 13 bankruptcy, however, similar obligations may not be discharged unless they are to be paid full as part of the Chapter 13 repayment plan. It must be clearly stated in the Chapter 13 plan how the due domestic support obligations will be repaid. It is possible that the court will order payment of these obligations through income deduction. If a debt is not part of spousal support or alimony but instead involves a division of property the obligations are dischargeable. It is vital to remember that Chapter 13 bankruptcy may be dismissed if the debtor is not able to pay the domestic support obligations that are part of the repayment plan. Discharge will only be entered if the debtor is able to certify that all of the domestic support obligations are current.