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Domestic Support Obligations (DSOs) in Bankruptcy

In essence, a DSO is a debt (including interest) that accrues before, on, or after the date a bankruptcy is filed that is in the nature of alimony, maintenance, or support.  This debt can be owed to a spouse, former spouse, or child (or parent of said child).  A DSO can be created by a:

  • Separation agreement
  • Divorce decree
  • Property settlement agreement
  • Court order
  • Determination made by a “governmental unit.”

DSOs are given quite a bit of priority under the bankruptcy code, often one of the first debts paid by a bankruptcy trustee. Learn more here!