Errata: Domestic Support Obligations Assigned to a Private Entity Are Not Discharged in Bankruptcy
Short paragraphs in both How to File for Chapter 7 Bankruptcy and The New Bankruptcy: Will it Work for You? state that a domestic support debt that has been assigned to a private entity for reasons other than collection (a very rare occurrence) is dischargeable in bankruptcy. This is erroneous. Congress had previously removed this exception so that all domestic support obligations, whether assigned or not, are now treated in the same manner.
The pages that are affected are:
- page 292 of the 17th edition of How to File for Chapter 7 Bankruptcy, and
- page 69 of the 5th edition of The New Bankruptcy: Will it Work for You?