BANKRUPTCY

CS 890P-2 Bankruptcy – Pre-Order Procedures

03/21/07 Revised 09/13/16 Training Completed 03/20/13 Last Reviewed 11/04/25

U.S.C. Title 11 §501(a), U.S.C. Title 11 §502(a), U.S.C. Title 11 §507(a)(1); U.C.A. 78B-02-112; Bankruptcy Court Local Rule 2083-1(g)

Procedures – NCP files for Bankruptcy, CSS Establishing Order

If the Office of Recovery Services/Child Support Services (ORS/CSS) receives notification that the NCP has filed for bankruptcy and CSS needs to establish an order for current support, a Proof of Claim may not be filed with the bankruptcy courts until after a support order has been established. Therefore, the order must be established and the Proof of Claim must be filed before the 180-day filing time frame lapses (from the date the NCP files for bankruptcy). For more information on the Proof of Claim, refer to CS 890P-6 Bankruptcy – Proof of Claim Procedures.

To establish an order for current support and preserve any arrears money that may be owed, send the Notice of Agency Action (NAA) using the procedures for establishing a current support order found in ESTABLISHMENT OF PATERNITY and ESTABLISH ORDER sections of policy with the following changes:

1. Determine the filing deadline for the Proof of Claim. CSS has 180 days to file the Proof of Claim, but it is not to our advantage to wait that long. Take steps to ensure that the establishment action will be complete prior to the deadline for filing the Proof of Claim. If the NCP files the bankruptcy in a court other than Utah, contact the child support agency in the state the bankruptcy was filed to determine the guidelines to be used for the Proof of Claim and how they handle similar cases.

2. Generate the appropriate Notice of Agency Action (NAA).

3. Take an order for current support.

NOTE: If the case is an interstate case and you would normally take a judgment for genetic test costs, do not take the judgment while the bankruptcy is active as this would be considered an “enforcement action.” Also, do not issue any judgments for retained support during bankruptcy.

4. File the Proof of Claim if the bankruptcy action is in another state, (follow the normal procedures for filing a claim in that state.) If you are filing:

a. Within 180 day time frame – Send a Proof of Claim to the appropriate bankruptcy court. For more information on sending a Proof of Claim, follow the procedures found in CS 890P-6.

b. After 180-day time frame ‒ Contact the appropriate attorney to determine the next step. A Proof of Claim may still be filed after the filing time period, but this process requires the assistance of the AGO.

c. If retained support is an issue (or may be an issue) for the party in bankruptcy, work with the appropriate attorney in the SLC, Ogden or St. George office based on where the bankruptcy was filed and the regional AGO alpha split to determine if the retained support (documented or undocumented) should be included on the Proof of Claim as an un-liquidated or contingent claim.