Alimony During Bankruptcy


If your finances have left you in shambles, you may have to declare bankruptcy to make your debts more manageable. If you file Chapter 7 bankruptcy, some of your debts may get discharged. If you declare Chapter 13 bankruptcy, some of your debts may be reorganized so that they are easier to pay.

So what happens to alimony payments during bankruptcy?

Unfortunately, even if your finances have proven insufficient just for you, you will likely still have to make alimony payments to your ex-spouse during your bankruptcy period.

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Alimony, also known as spousal support, is a predetermined sum paid to your ex-spouse, usually on a monthly basis. The amount of this support is either determined by you and your spouse or, more commonly, by the divorce court that settled your case.

Regardless of the type of bankruptcy you declare, you will still be responsible for paying alimony. Depending on the chapter you file, though, there may be different circumstances under which you pay your ex-spouse.

When you file a Chapter 7 bankruptcy, your assets may be liquidated to help pay off your debts. Usually, back-owed alimony and child support are the first debts relieved. However, you are responsible for keeping up with payments after that.

When you file a Chapter 13 bankruptcy, you are required to work out payment plans with your creditors. You will also work out a payment plan for your alimony. You will pay a set amount during the period you are paying off your debts.

Once you are debt-free, your alimony payment goes back up to the original amount, and you will have to repay the remaining balance of the alimony that you did not pay under the payment plan. It is important to keep this in mind when you declare bankruptcy.

The judge that granted your divorce may grant you a reprieve from alimony if you petition. Conversely, your ex-spouse may petition for a higher alimony payment since you will be debt free. You should consult with an experienced bankruptcy attorney before proceeding with any such plan.

Bankruptcy can be a tough period in your life, and dealing with payments that bankruptcy will not take care of can be quite stressful. Don't go through this process alone. By contacting a legal bankruptcy lawyer, you and your spouse will be able to focus on other aspects of this process. Allowing a bankruptcy lawyer to help you will help reduce the stress of undergoing a divorce.


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