People who are divorced or who live apart from their children often have domestic support obligations. These are legal orders to pay spousal support and child support. Notably, domestic support obligations can have an impact on bankruptcy proceedings.
If you have domestic support obligations in Toms River and are struggling with debt, our experienced bankruptcy attorneys can help. They can review your situation and propose a solution that is right for you and your family.
Divorce is a common underlying factor in bankruptcies. When a family must support two households on the same income that used to support just one, financial strain is almost inevitable. Divorce also leads one of the parties to incur domestic support obligations (DSO). These are legal commitments to financially support their children, and sometimes, to pay alimony or spousal support to their former spouse. The financial burden of DSO can be considerable.
People who are having trouble regaining their financial footing after a divorce sometimes consider bankruptcy. Bankruptcy is an alternative that can help a debtor get a fresh start, but DSO can complicate the proceedings. If you are having trouble managing your debt and are subject to DSO, speak frankly with an attorney in our Toms River office about whether bankruptcy is the right strategy for you, and if so, how it might impact your DSO.
Debtors sometimes hope that declaring bankruptcy will relieve them of the obligation to pay alimony or child support. However: it will not. Under 11 United States Code § 523(a)(5), DSO are not dischargeable in bankruptcies under Chapter 7, Chapter 11, or Chapter 13.
New Jersey law allows modifications of spousal support and child support orders if there has been a substantial change in circumstances since the family court issued the original order. An attorney in our Toms River office could work with your family lawyer to support a petition to modify your child support or alimony payments to ease the financial hardship you are experiencing.
Most people considering bankruptcy have pressing debts other than their domestic support obligations. Although modifying the DSO may provide some relief, other steps may be necessary to regain a solid financial footing.
Although bankruptcy cannot wipe out the obligation to pay spousal support and child support, and to make good any arrearages, but it can help a debtor afford to pay their domestic support obligations. DSO is a priority debt and will be paid first, whichever form of bankruptcy the debtor chooses.
Debtors must be up-to-date on their DSO to be eligible for a Chapter 7 bankruptcy. A debtor in arrears on child support or alimony and considering a Chapter 7 bankruptcy filing should work with an attorney in our Toms River office to bring their domestic support obligations current before filling.
When a debtor enters a Chapter 13 bankruptcy, they can propose repaying any DSO arrearages over a three-to-five-year span. However, the debtor must make their periodic DSO payments in accordance with the family court order while the bankruptcy proceedings are ongoing.
Paying alimony and child support can represent a financial burden, but bankruptcy will not relieve you of the obligation to pay. In some cases, however, it may make it easier for you to meet your domestic support obligations in Toms River. Our skilled attorneys at Gillman Capone can help you get back on your feet financially. Contact us today to arrange a complimentary case review.
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