Redwood City Bankruptcy: Domestic Support Obligations

The ability to support family is an important issue and the courts recognize this fact; thus domestic support obligations are a priority when filing for a bankruptcy. These obligations will be accommodated before any other unsecured debt in debtors’ Chapter 13 case, but secured creditors and administrative fees get paid before support obligations.

An automatic stay is a federal court order that stops all collection proceedings against debtors after they file for bankruptcy. The automatic stay will not end the collection of a domestic support obligation regarding a piece of property that is not part of the individual’s estate. Assets traditionally not considered property of the estate, like 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 implemented in October 2005 and not effect the "establishment" or "modification" of a domestic support obligation. Call Sagaria Law to schedule an appointment in Redwood City for a consultation.

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