Understanding Domestic Support Obligations in Bankruptcy: 11 USC 523(a)(5) vs. 11 USC 523(a)(15)
Bankruptcy can be a complex process, especially when it involves domestic support obligations. In the bankruptcy code, there are two key sections that address these obligations: 11 USC 523(a)(5) and 11 USC 523(a)(15). Understanding the differences between these sections is crucial, as it can have a significant impact on your bankruptcy case.
11 USC 523(a)(5): Child Support and Alimony
Section 11 USC 523(a)(5) specifically deals with debts related to child support and alimony. The crucial point to remember here is that these debts are typically non-dischargeable in both Chapter 7 and Chapter 13 bankruptcy cases. In simpler terms, you will still be responsible for paying child support and alimony even after filing for bankruptcy.
11 USC 523(a)(15): Other Domestic Support Obligations
On the other hand, 11 USC 523(a)(15) addresses other domestic support obligations that are not specifically child support or alimony. This section opens the door to potential discharge of these debts, but it’s not a guaranteed outcome. The dischargeability of such debts depends on various factors, including whether they are “in the nature of support.”
Examples of 11 USC 523(a)(15) Debt:
Let’s consider an example to illustrate the difference:
Imagine you have a debt arising from a property settlement in a divorce case. This debt does not involve child support or alimony but is related to the division of marital property. In a Chapter 7 bankruptcy case, debts falling under 11 USC 523(a)(15) might not be discharged because they are not automatically considered non-dischargeable like child support or alimony.
However, the story changes in a Chapter 13 bankruptcy case. In Chapter 13, you create a repayment plan to pay off a portion of your debts over several years. Now, if that property settlement debt does not meet the criteria of being “in the nature of support,” it could potentially be discharged or treated differently through your repayment plan.
In summary, while child support and alimony debts under 11 USC 523(a)(5) are almost always non-dischargeable in bankruptcy, other domestic support obligations under 11 USC 523(a)(15) may have a chance at discharge, especially in a Chapter 13 bankruptcy case. However, the determination of dischargeability can be complex and depends on the specifics of your situation.
Navigating domestic support obligations in bankruptcy requires careful consideration and expert legal advice. It’s crucial to consult with a knowledgeable bankruptcy attorney to assess your unique circumstances and guide you through the process effectively.
Remember, this blog post provides a simplified overview, and the actual outcome of your bankruptcy case may vary based on various factors. Always seek professional legal assistance when dealing with bankruptcy matters.