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Bankruptcy Law and Family Law

The new bankruptcy law of 2005 (we call this the “new” law because it is the biggest change in the Bankruptcy Code since its inception in 1978) changed the protections that one receives by filing bankruptcy. Under the new bankruptcy law, pretty much all of the types of payment obligations you might obtain in a family court decree are lumped together and called Domestic Support Obligations. This includes child support, alimony, payments on debts one is ordered to pay in a family court decree, and others. I will refer to these in this article as DSOs.

If you file a chapter 7 bankruptcy you cannot discharge a DSO. Understand the basic concept of DSOs versusistock_000000460790xsmall

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    No, not unless you committed a crime in the creation of the debt (for example, fraud). Simply borrowing money and not being able to pay it back is not a crime. Many creditors representatives will tell you lies on the telephone and say that they will have you put in jail. Perhaps they are too ignorant to know they are wrong or that it is illegal for them even to say that. See More Bankruptcy Q&A