Bankruptcy Rules For Alimony, Spousal and Child Support

Divorce often puts tremendous strain on both spouse’s finances. One spouse is suddenly paying alimony, spousal or child support, while the other may be scrambling to find a job after staying home with the kids for years. Both have increased living expenses with the move to two separate residences.

Either of the parties may consider bankruptcy as a way to get rid of some of their debt burden from the marriage and move on. Filing for bankruptcy can free an individual from many of the debts they currently owe and help them start over. But if you’re divorced — especially if you pay alimony or other support — consider carefully whether bankruptcy is the right step for you.

You should be aware that your court-ordered obligations to pay alimony or other forms of support won’t go away in a bankruptcy. Court-ordered support cannot be discharged or eliminated in a bankruptcy.

After the bankruptcy concludes, you will still owe the same alimony or support payments you did previously, just as if the bankruptcy never happened. Other, unsecured debts such as personal loans or credit-card bills can be eliminated in a bankruptcy, possibly putting you in a better position to pay your ongoing support responsibility.

On the other hand, if you are the spouse collecting support payments, know that this money will be considered income in determining whether you can repay any of your debts. This helps determine what type of bankruptcy you will file.

If you have some ability to repay your lenders, you will need to use the Chapter 13 bankruptcy structure. In Chapter 13, you work out a repayment plan to pay off your debts over time. You must stay current in your alimony or support payments to keep your Chapter 13 repayment plan in effect and conclude your case. Property settlements from a divorce may be dischargeable under Chapter 13, though.

If your income is inadequate to pay off even part of your debt over time, Chapter 7 liquidation will be more appropriate. You will be able to resolve many debts in Chapter 7, but your child support or alimony payments will not be affected.

If you’re considering filing for bankruptcy in Michigan, call Firebaugh & Andrews for your free consultation. 734-722-2999.

Why choose Firebaugh & Andrews for your bankruptcy?

Get a fresh financial start with Firebaugh & Andrews P.L.L.C Bankruptcy Law Firm
Advice and representation for individuals and businesses through the intricacies of the Bankruptcy process
Filing for bankruptcy can be a very time-consuming and complicated process. As a debtor you must comply with numerous federal laws and regulations and a mistake at any point in this process can be very costly resulting in the court refusing to discharge your liabilities. The consequences of this can have a long-term financial effect and put a high strain on you and your family. With so much at stake it is essential that you make the right choices and trust a professional bankruptcy lawyer right from the start. Whether you are considering filing under Chapter 7, 11 or 13,  Firebaugh and Andrews will be able to guide you through the labyrinth of procedures and requirements, to ensure a fresh financial start with less to worry about and more to enjoy from your future life.

What is Bankruptcy?

If you are a business or an individual who cannot meet your financial obligations in relation to repaying some or all of your debt, bankruptcy could be the way for you to go. Federal law governs the rules and procedures related to bankruptcy in the U.S. so individual states cannot legislate in this area. We will determine whether bankruptcy is the right way for you to seek relief and whether you should do it under Chapter 7, Chapter 13 or Chapter 11 of the United States Bankruptcy Code.
Our Firm
Our head attorneys, Samuel G. Firebaugh and Roberta W. Andrews have over 40 years of experience between them in practicing bankruptcy law as well as additional knowledge in the practice of other areas of law, finance and business. You can rely on their competence, in-depth knowledge and case experience, as well as their high professionalism and rest assured that your circumstances will be treated with the utmost attention and you will receive a friendly, compassionate and personalized service. Our lawyers always put the interests of our clients at heart and make sure that you are given the best advice about the choices you have. Samuel and Roberta will be with you every step of the way, making sure that your case that you get the best possible outcome depending on your individual circumstances.

Get in Touch
There’s no better time to get in touch with Firebaugh & Andrews than today. Call us on 734-722-2999 and re-start your finances for as little as $317.00 down.
You can find us
38545 Ford Rd Ste 104
Westland, MI 48185

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