You open your mailbox and see another stack of bills you can’t pay. Between your alimony payments and mounting debt, you’re barely keeping your head above water. Naturally, you’ve heard that bankruptcy can wipe out debt, so you wonder: Could it also stop your alimony payments?
Before making any decisions, understanding first how bankruptcy affects your support obligations is crucial to your financial future.
How alimony is not considered as a debt
Unfortunately, federal law treats alimony differently than credit card bills or medical debt. Specifically, federal law classifies your alimony payments as a non-dischargeable domestic support obligation.
As a result, bankruptcy cannot eliminate your duty to pay spousal support. While the bankruptcy system helps you clear certain debts, alimony doesn’t fall into that category. Therefore, you must continue making these payments even after filing for bankruptcy. However, this doesn’t mean bankruptcy offers you no relief at all.
How filing for bankruptcy can still help
If you’ve fallen behind on your alimony payments, Chapter 13 bankruptcy allows you to include your past-due amounts in a repayment plan. This means you can spread these overdue spousal support over three to five years, making them easier to handle.
Also, Chapter 13 bankruptcy stops other creditors from taking money directly from your paycheck. This gives you more breathing room to catch up on your alimony instead of losing money from every paycheck. However, if your current alimony order amount is too high, you might need a different approach.
What should you do if you can’t pay
If your job situation, income or health has changed since your divorce, the court may reduce what you owe each month. This is where you might want to seek legal help to file a motion in family court. This approach helps solve your ongoing problem rather than just helping you catch up on old payments.
With a lower monthly amount, you can actually afford your payments going forward and avoid falling behind again. A family law attorney can help you show the court why you need this change and guide you through the legal process.
