How Does Bankruptcy Affect Alimony?
When facing financial difficulty, many people consider bankruptcy as a possible solution. Bankruptcy can provide debt relief but filing for bankruptcy can also have an effect on alimony payments that are being made by the debtor to a former spouse. It is important to understand how bankruptcy affects alimony so that you can make informed decisions about your financial future.
In general, the court does not allow debtors to discharge their alimony obligations in a chapter 7 or liquidation bankruptcy. This means that if you file for chapter 7 bankruptcy and have been paying out alimony, you will still be required to make those payments even after your debts have been discharged by the court. However, depending on the situation, it is possible for judges to decrease or modify the amount of alimony owed in some cases when filing for Chapter 13 or reorganization bankruptcy.
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