Chapter 13 Filing: Are Child Support or Alimony Payments Still Required?

Every Chapter 13 debtor must propose a plan for how he will repay his debts.  Generally, the repayment plan must allocate 100% of the debtor’s monthly net disposable income for payment into the plan which is administered by the Chapter 13 trustee.  All Chapter 13 payments will be distributed by the trustee to the debtor’s creditors according to their priority. 

What is a Domestic Support Obligation?

The Bankruptcy Code defines the term “domestic support obligation” as any debt incurred that is owed to or recoverable by a spouse, former spouse, child, or government agency for alimony, maintenance, or child support pursuant to the terms of a divorce decree, separation agreement, property settlement agreement, court order, or administrative order.  Domestic support obligations may arise before or after a bankruptcy petition is filed. 

Are Domestic Support Obligations Dischargeable?

In Chapter 7 cases, domestic support obligations are not dischargeable as long as they are meant for the support of a spouse, former spouse, or child and arose in relation to a divorce or other family law matter.  Additionally, a debtor’s obligation to pay the attorney’s fees owed to a former spouse’s attorney are not dischargeable if it arose in connection with an order for payment of spousal support or alimony.  

In Chapter 13 cases, past due domestic support obligations are not dischargeable unless they will be paid in full over the life of the Chapter 13 plan.  However, if a debt is not in the nature of support, but rather a division of property, it may be dischargeable. 

The debtor’s Chapter 13 plan must set forth how past due domestic support obligations will be paid.  If there is a court order in place requiring payment of past due domestic support obligations via income deduction, the bankruptcy court will not interfere with that order by requiring the debtor to make such payments through his Chapter 13 plan.  However, the debtor will be required to provide proof of all post-petition domestic support obligation payments to the trustee as a condition of confirmation of his Chapter 13 plan.  Additionally, the debtor must list his spouse or the party to whom he pays support as a creditor on his bankruptcy schedules. 

It is important to note that a Chapter 13 case can be dismissed if the debtor fails to pay all post-petition and post-confirmation domestic support obligations.  Moreover, a discharge will not be entered until a debtor certifies that all domestic support obligations are current. 

Getting Legal Help

If you are behind on child support, alimony, or any other domestic support obligation, you should speak with a qualified bankruptcy attorney.  Although filing bankruptcy will not eliminate domestic support obligations, it could eliminate or reduce other debt, thus making it possible for you to pay whatever you’ve been ordered to pay.