How has the Bankruptcy Abuse and Consumer Protection Act of 2005 (2005 BACPA) affected the practice of family law?
There are several major changes that the new bankruptcy code (hereinafter referred to as the BACPA) has made on the practice of family law. All domestic support obligations are now classified “first priority” claims under section 507(a)(1) of the Bankruptcy Code. Second among the first priority debts are those domestic support obligations that are assigned to a governmental unit. Basically, any child support that is owed to probation or to the local county board of social services is also given priority status. 2. How has the 2005 BACPA affected Chapter 13 practice? Section 1307(c) of the Bankruptcy Code was amended to make the failure to pay post-petition support a ground for dismissal of the bankruptcy case. Basically, if a debtor is not paying his child support, then his Chapter 13 case can be dismissed. In addition, new Section 1322(a)(4) of the Code provides that, although support owed is now a priority debt, it need not be paid in full if the debtor proposes a five-year plan that
