Understanding Domestic Support Obligations in Bankruptcy

This video, which was originally posted on my YouTube channel, explains domestic support obligations (DSOs) in bankruptcy.  DSOs are court-ordered payments for child support or alimony (spousal support). Adding DSOs to the Bankruptcy Code was part of the changes made in 2005 with the Bankruptcy Abuse Prevention Consumer Protection Act (BAPCPA).

Updated on February 22, 2025.

Domestic Support Obligations and Bankruptcy

When it comes to Domestic Support Obligations (DSOs), there are several issues to consider. For one, it’s not a debt that can be discharged in bankruptcy like credit card debt. DSOs are treated as a priority debt in Chapter 13 bankruptcy, which means they get paid out before other types of debt, such as unsecured debts. Another type of priority unsecured debt is taxes. Secured debt, such as a car loan or mortgage, takes precedence over priority unsecured claims.

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The automatic stay will also be discussed since family court judges continue to delay hearings related to child support and alimony because of a bankruptcy filing. The automatic stay is what prevents most lawsuits from moving forward, but it doesn’t apply to DSOs. But when applied to debt collection lawsuits, the automatic stay will prevent wage garnishment or bank levies. It also will temporarily stop a foreclosure or car repossession in a Chapter 7 bankruptcy.

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Finally, the bankruptcy petition will be discussed, specifically Official Form 106I Schedule I: Your Income (individuals) and Official Form 106J Schedule J: Your Expenses (individuals).

Whether filing Chapter 7 or Chapter 13 bankruptcy, income and expenses have to be compared. Generally, debtors believe because they passed the mean test, they automatically qualify for Chapter 7 bankruptcy, but if there is a large amount of disposable income, Chapter 13 will be required regardless of the means test.

Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. For paralegals and students buying single copies, you can do so via Amazon books. To access my YouTube channel, click this link. Bankruptcy archived posts can be found via this link.

Additional blog content is available below:

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Please note the information on this site does not constitute legal advice and should be considered for informational purposes only.