30 Jul Why Did The Trustee Notify My Ex-Wife About My Bankruptcy?
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 enhanced certain rights and procedures for the benefit of domestic support obligation [DSO] creditors. Section 101(14A) broadly defines DSO to include debts in the nature of alimony, maintenance or support. Section 523(a)(5) makes DSO debt non-dischargeable.
Along with these changes, 522(c)(1) included a clarification specifying that otherwise exempt property remains liable for domestic support obligations, not withstanding any provision of applicable nonbankruptcy law to the contrary. That section may be read to mean federal law makes all property subject to collection for DSO purposes regardless whether state law exempts such property. And section 507(a)(1)(A) confers first administrative priority status to DSO claims in bankruptcy.
Congress saw a need to publish these changes to each and every DSO holder upon the filing of a bankruptcy involving their debt. So, Congress included a requirement in Section 704 that the trustee must provide written notice to holders of domestic support obligations and state child support enforcement agencies of their rights to collect child support during and after the case. Every debtor is required to provide the trustee with the name and address of the DSO holder so that notice may be sent in compliance with this law.
Andy Miofsky, Esq.
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