Roseville Bankruptcy: Domestic Support Obligations

The law offers bankruptcy to give consumers the option of a fresh start.  This important policy, however, does not overrule all other policy concerns.  The court prioritizes domestic support obligations because it recognizes the societal interest in providing for families.  For this reason, domestic support is paid before unsecured debt, though it is paid after secured creditors and administrative fees.

Automatic stays normally stop all credit collection activities; however, an automatic stay does not stop domestic support obligations.  If you are required to make a support payment to pay for property that is not yours (but instead your family’s), this obligation is not stayed, and these payments must be made.  Wages and pension plans can be attached and levied to satisfy these obligations.  Either “establishment” or “modification” of domestic support obligations are unaffected by a stay.
In addition, automatic stays do not protect against a license suspension or tax refund offset.  Changes in the law have limited how automatic stays can protect in these circumstances.  The Roseville attorneys of Sagaria law are adept at dealing with all the complexities of bankruptcy law.  Call today to learn more in a consultation.

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