Current through Register Vol. 61, No. 4, April 1, 2022
This rule details the Child Support Program's responsibilities
in situations of obligor bankruptcy and applies to Chapter 12 and Chapter 13
bankruptcies filed on or after October 17, 2005. For bankruptcies filed prior
to October 17, 2005, the Bankruptcy Code in effect at the time the bankruptcy
was filed applies, as does the prior version of OAR 137-055-2380 in effect at
the time the bankruptcy was filed.
Upon receiving notification of bankruptcy, the administrator will:
Stop any legal action that is pending,
(A) Initiating or proceeding with the
establishment of paternity;
Initiating or proceeding with the establishment or modification of a child
support order; or
(C) Changing the
support award based on a change in the child's physical custody as authorized
by ORS 25.525.
file any document in circuit court in a county in which the debtor owns real
property that creates a lien by its terms or by operation of law without first
obtaining relief from the automatic stay.
(c) Leave any existing income, unemployment,
or workers' compensation withholding orders for current support only in place.
If there is an ongoing support obligation and income withholding is in place
that includes arrears, the administrator will send an amended withholding order
for current support only. When the bankruptcy plan is confirmed, the
administrator may issue a withholding order for current support and arrears to
the extent authorized in the bankruptcy plan.
(d) Determine if there are any other
enforcement actions in process that may need to be stopped due to the stay or
which may involve property of the bankruptcy estate, such as a writ of
garnishment or contempt of court action; and
(e) Terminate any action that involves
property of the bankruptcy estate and is not excepted from the automatic stay
and send any such property of the estate that has not been distributed to the
The administrator will file a Proof of Claim for current support and arrears
owed at the time the petition was filed, in any, if the time period for filing
a Proof of Claim has not passed. However, if it will not be feasible for the
debtor to pay the entire support obligation during the duration of the
bankruptcy plan, the administrator may negotiate with the debtor a stipulation
in the bankruptcy plan to collect a lesser amount of support through the plan.
Any such stipulation will specify that the remaining debt will be paid outside
the plan and the support is nondischargeable.
(3) The administrator will respond to any
objections filed to the Proof of Claim.
The administrator will review the Summary
of Plan or proposed Plan and the Debtor's Schedule J, if available, for the
repayment of arrears and for payment of ongoing support; and
(a) If the time period for filing objections
has not passed, the administrator may file an objection to a Plan if the Plan
is not feasible.
(b) If the Plan
does not provide for pre-petition arrears, the administrator may file an
objection to have the pre-petition arrears included in the plan if the time
period for filing an objection has not passed.
(5) After confirmation, if the property of
the estate has revested in the debtor, the administrator will resume collection
on current support and post-petition arrears. If the Plan provides for the
pre-petition arrears, collection of the pre-petition arrears will be governed
by the terms of the Plan.
the debtor fails to make timely support payments after filing the bankruptcy
petition, the administrator may petition the bankruptcy court for relief from
the automatic stay or move for dismissal of the bankruptcy.
(7) The administrator will continue to
certify a case for federal and state tax refund intercept unless otherwise
provided by the bankruptcy plan. However, if it is determined that an
intercepted tax refund is the property of the estate and the bankruptcy trustee
requests the money, the administrator will forward the money to the bankruptcy
trustee and notify the parties.
Or. Admin. R.
AFS 2-1995, f. 1-10-95,
cert. ef. 1-11-95; AFS 13-1999, f. 10-29-99, cert. ef. 11-1-99; AFS 32-2000, f.
11-29-00, cert. ef. 12-1-00, Renumbered from 461-195-0288; DOJ 6-2003(Temp), f.
6-25-03, cert. ef. 7-1-03 thru 12-28-03, Renumbered from 461-200-2380; DOJ
10-2003, f. 9-29-03, cert. ef. 10-1-03, Renumbered from 461-200-2380; DOJ
8-2007, f. 9-28-07, cert. ef. 10-1-07; DOJ 1-2010, f. & cert. ef. 1-4-10;
11-2020, minor correction filed 02/05/2020, effective
Statutory/Other Authority: ORS
Statutes/Other Implemented: ORS