When bankruptcy and divorce collide (as they often do), Congress has given family claimants several advantages over other creditors. Here’s a quick rundown.
- Exception from the automatic stay for efforts to establish orders for paternity, child support, or alimony. 11 U.S.C. §362(b)(2)(A).
- Exception from the automatic stay for collection of child support or alimony. 11 U.S.C. §362(b)(2)(B).
- Priority for unsecured claims of the debtor’s spouse, former spouse, or child for alimony or support. 11 U.S.C. §503(b)(7).
- Priority of a judicial lien for support over the exemptions otherwise available to a debtor in bankruptcy. 11 U.S.C. §522(f)(1)(A).
- Nondischargeability of obligations for support owed to children, spouses, and former spouses. 11 U.S.C. §523(a)(5).
- Possible nondischargeability of obligations for property settlement claims owed to children, spouses, and former spouses. 11 U.S.C. §523(a)(15).
(Visited 232 times, 1 visits today)