Bankruptcy may give filers a chance to reorganize and come up with a payment plan, but it doesn't relieve their responsibility to pay alimony and child support. Both debts are ineligible for a bankruptcy discharge.
Bankruptcy wipes a number of debts completely clean, but not all. Congress has decided that certain debts — including your spouse's alimony or child support debt — can't be forgotten just because the person files bankruptcy.
If your spouse is filing for bankruptcy, he or she must continue to pay all child support and alimony payments in full and on time. If he or she doesn't continue to do that, it could potentially put your spouse at risk of being in contempt of court and subject to wage garnishment. Your state laws may also allow for your spouse to be arrested or have his or her assets seized; and the state could revoke the person's driver’s license.
Your spouse filing for bankruptcy protection may not be a bad thing at all. In many cases, it could serve as an opportunity to get back on his or her feet and regain financial control.
However, if your spouse is considering filing bankruptcy and you're concerned about his or her ability to pay child support and alimony, it may be advisable to consult an attorney.
Castle Law Office has been handling bankruptcies for Kansas City clients from more than 14 years. If you need the fresh start bankruptcy can provide, call us today at 816-842-6200 to speak with an attorney. Or click here to email us and schedule your free consultation.