Beaverton Bankruptcy: Domestic Support Obligations

If you have a family in Beaverton or Portland, your ability to support your family members is an important issue. The courts recognize this fact. Your domestic support obligations are a priority when you file for a bankruptcy. These obligations will be accommodated before any of your other unsecured debt in your Chapter 13 case. However, secured creditors and administrative fees get paid before your support obligations.

An automatic stay is a federal court order that stops all collection proceedings against you after you file for bankruptcy. The automatic stay will not stop the collection of a domestic support obligation regarding a piece of property that is not part of your estate. Assets traditionally not considered property of the estate, like your post-petition wages in a Chapter 7 case, or a pension plan, can still be levied to satisfy a domestic support obligation.

The automatic stay will not prevent a license suspension or a tax refund offset under the new law, which went into effect in October of 2005. The automatic stay will also not effect the "establishment" or "modification" of a domestic support obligation. Call Sagaria Law to schedule an appointment in Beaverton for consultation.

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