If you are unable to pay your debts, then bankruptcy allows you to discharge them so that you can start a fresh financial journey. As with other legal processes, however, there are exceptions to this rule. There are some debts that you cannot discharge, and alimony (spousal support after divorce) is one of them.
Whether you are filing for Chapter 7 or Chapter 13 bankruptcies, you will have to continue servicing your alimony payments. So if you were thinking of bankruptcy as a way out of these obligations, then you should start thinking of alternative solutions. Don't forget that the consequences of not paying alimony can be dire; you can be held in contempt of court, your income can be withheld, and portions of your financial accounts can be seized.
How Filing for Bankruptcy Can Help
Therefore, a bankruptcy discharge can still help you if you have not been paying alimony for a long time and have accrued a significant amount of interest. The discharge may get rid of the accrued interest so that you only concentrate on paying the principal amount, which is the real alimony.
This brief discussion of the relationship between alimony and bankruptcy shows just how complicated these issues can be. It is advisable to consult an attorney, such as Legal Clinic Of Jerry Paeth, early on so that you don't make any move before ascertaining that it will help you meet your objectives. For example, an attorney may help you decide on which bankruptcy chapter to choose if you have debts related to marital obligations.
Several years ago, one of my best friends married the guy of her dreams. This tall, quiet man adored my friend. Almost every week during their courtship, he presented her with a beautiful, fragrant arrangement of flowers. At the time, my friend’s mom joked that her home resembled a funeral home because of all of the flowers her boyfriend sent her. After the happy pair married, they purchased a new home together and quickly began running out of money, meaning that he could no longer afford to give her the flowers she loved. They even discovered they couldn’t afford to pay the monthly mortgage. After only a few years of marriage, they filed for bankruptcy. On this blog, you will discover the ways a reputable bankruptcy attorney can help you successfully recover from financial ruin.