Virginia Bankruptcy Law - Child Support
11 U.S.C. 523 provides discharge will not be allowed for debts owed (5) to a spouse, former spouse, or child
of the debtor, for alimony to, maintenance for, or support of such spouse or child, in connection with a
separation agreement, divorce decree or other order of a court of record, determination made in accordance with
State or territorial law by a governmental unit, or property settlement agreement, but not to the extent that -
(A) such debt is assigned to another entity, voluntarily, by operation of law, or otherwise (other than debts
assigned pursuant to section 408(a)(3) of the Social Security Act, or any such debt which has been assigned to
the Federal Government or to a State or any political subdivision of such State.
11 U.S.C. 523(b) further limits dischargeability of child support, by requiring any
payment which may be dischargeable under another exception, is nevertheless non-dischargeable if "discharging
such debt would result in a benefit to the debtor that outweighs the detrimental consequences to a spouse,
former spouse, or child of the debtor."
Virginia Bankruptcy Law - In Practice
Public policy requires governmental support and protection of the rights of children. In cases of financial
hardship, state and federal financial support is provided to children, and in turn, Virginia bankruptcy laws prevent
responsible parents from eliminating liability.
Be aware that all options are not available to all debtors. The availability of alternatives depends on
several factors. State & federal laws change frequently through the legislative process and through court
interpretations. Each debtor presents a unique financial history and assortment of debts. Local rules and
customs vary. Nevertheless, all debtors gain the maximum benefit available similarly: careful planning and
selection of options before filing.
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