Past due alimony debt and ongoing, future alimony payments are not dischargeable in bankruptcy, as per Section 523 (a) (5) of the Federal Bankruptcy Code. Although alimony debt and payments cannot be discharged or wiped clean in a bankruptcy, the amount paid can be changed under certain scenarios.Alimony and child support debts in bankruptcy cannot be discharged. But an assumed alimony debt can be discharged in Chapter 13 bankruptcy if considered a property settlement agreement. And debtors should be careful filing bankruptcy with alimony or child support debts because doing so waives state law exemptions.
But, beyond alimony and child support, in many divorce agreements one spouse will be required to take responsibility for debt incurred by the other spouse. This debt also is not usually discharged in a bankruptcy, but can be in some cases depending on the particular bankruptcy filing, case specifics and ruling of the Bankruptcy Court.The general rule is that an alimony obligation doesn’t just disappear in bankruptcy. Filing for bankruptcy to avoid an obligation to pay spousal support is a bad idea, because domestic support obligations cannot usually be “discharged” (cancelled or forgiven) in a bankruptcy proceeding.
Domestic support obligations aren’t dischargeable in bankruptcy.Dischargeable Debts In general, all scheduled unsecured debts are discharged in a bankruptcy case. There are, however, enumerated debts which are non-dischargeable. Obligations to pay alimony, maintenance and support, for example, cannot be excused.NO, you can discharge child support or alimony obligations in either a Chapter 7 or Chapter 13 bankruptcy. In a Chapter 13 reorganization plan child support and alimony payments are considered priority debts and must be kept current throughout the bankruptcy.
to the Bankruptcy Code have made it much more difficult to discharge divorce-related debts in bankruptcy. Creditors owed alimony and support now have much greater ability to collect those debts. In order to understand the bankruptcy law in this area, it is helpful to know some basic information about the different bankruptcy chapters.Under Section 523 of the Bankruptcy Code, the first requirement for barring bankruptcy discharge of an alimony or support obligation is that the obligation must have accrued in connection with a separation agreement, divorce decree, or other court order.
A lot of people who choose to come see us for filing for bankruptcy have already been divorced. There are certain debts in the Divorce Decree that cannot be discharged no matter what and other debts which can only be discharged in a chapter 13. A typical divorce decree will spell out child support obligations and alimony.Debts Never Discharged in Bankruptcy . . Alimony and child support. Certain unpaid taxes, such as tax liens. However, some federal, state, and local taxes may be eligible for discharge if they .
