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Advantages of Family Claimants in Bankruptcy
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).
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