How to Get Current on Alimony and Child Support in a Chapter 13 Bankruptcy

Most New Jersey residents file a chapter 13 bankruptcy repayment plan to get caught up on their mortgage and save their home from foreclosure. However, you can also file because you are behind on alimony, child support, or some other domestic support obligation (DSO). If this sounds like you, you can propose a plan of repayment over three to five years. This prevents your (ex)spouse from bringing any nastiness to bear to collect, while allowing you the breathing room you need to get caught up.

In doing this, you should bear in mind two things:

• DSOs get paid first. In 2005, Congress moved these debts to the top of the payment list. As a result, they are disbursed first before mortgage arrears (secured debt) or credit cards (unsecured debt). As such, it may be a three to five year plan, but the money is received by your (ex)spouse much sooner than that.

• DSOs must be kept current during the plan. In the past, people would file chapter 13 to pay a DSO arrearage, but then just get behind on current payments during the plan. Under the law now, however, you can be denied a discharge of all of your debts at the end of the plan if you are behind in payments without a darned good reason.

The advantage of the first point comes into play where circumstances change during your plan. Let’s say you have a five year plan, but because the DSO gets paid first, it gets brought current in the first 18 months. Two years in, you lose your job and cannot make the plan payments anymore. Depending on the circumstances, you may be able to convert to a chapter 7, discharge your other debt, and get a fresh start sooner.

So bankruptcy can definitely help you get current on these obligations. If you are behind on your alimony, child support, or other DSO, please call my office at 888-857-8418 or contact me through this site for a free consultation.

Related Topics

• What is a Domestic Support Obligation (DSO) in Bankruptcy?
• How to Lose Your Chapter 13 Discharge At the Finish Line

Getting divorced and thinking about bankruptcy? Is your spouse filing, and you are worried about what that might mean to your case?  Then get the answers to the most frequently asked questions by downloading my free book, Top Questions Divorcing Couples Ask About NJ Bankruptcy. It will give you the answers you need all in one place. Then call me at 888-857-8418 or contact me through this site for an appointment for a free consultation to discuss your case.