Child Support Obligations Not Discharged by Bankruptcy
September 14, 1981
TO:STATE AGENCIES ADMINISTERING CHILD SUPPORT ENFORCEMENT PLANS APPROVED UNDER TITLE IV-D OF THE SOCIAL SECURITY ACT AND OTHER INTERESTED INDIVIDUALS.
SUBJECT: Child Support Obligations Not Discharged by Bankruptcy
PURPOSE:The purpose of this Action Transmittal is to update OCSE-AT-79-08, dated October 9, 1979, regarding the effects of bankruptcy on child support obligations.
CONTENT:Effective August 13, 1981, section 2334 of Public Law 97-35 amends Section 456 of the Social Security Act and Section 523(a)(5)(A) of Title 11, United States Code to prohibit the discharge in bankruptcy of any child support obligations assigned to a State under Section 402(a)(26) of the Social Security Act. Prior to this amendment, Section 523(a)(5)(A) of Title 11, United States Code permitted the discharge in bankruptcy of child support obligations assigned to a State. Because of these revisions, child support obligations assigned to the State under Section 402(a)(26) of the Act are no longer released by a discharge in bankruptcy under title 11, United States Code. This change strengthens the Child Support Enforcement program by eliminating bankruptcy as a vehicle for avoiding payment of child support obligations.
EFFECTIVE DATE: August 13, 1981
REFERENCES:Statutory provisions with respect to child support obligations not discharged in bankruptcy (Public Law 97-35) have been transmitted to States via OCSE-IM-81-13, dated August 19, 1981.
OCSE-AT-79-08, dated October 9, 1979, provides historic information concerning previous laws on discharge of child support debts in bankruptcy.
INQUIRIES TO: OCSE Regional Representative
Acting Deputy Director
Office of Child Support Enforcement