There are a lot of questions about what property you are allowed to keep if you file bankruptcy. Before you file it is good to know what you will still be able to hang on to, and if there are certain things you will have to go without in your life. It may be that you are not able to keep a high dollar luxury car or continue taking lavish vacations, but you are allowed to keep necessities and will not have to give up things like child or spousal support.
Bankruptcy law allows for the following regarding alimony:
- The spouse obligated to pay support is not able to have this obligation forgiven just by filing bankruptcy. The monthly spousal support payments will still be due even if bankruptcy is filed by the spouse that owes.
- The person to whom money is paid is not required to turn that money over to the bankruptcy court or trustee if bankruptcy is filed. The purpose of support is to provide financial assistance to a spouse in need after divorce, and bankruptcy does not change this objective.
There are some exceptions, and they depend on the wording of your divorce decree. It takes a skilled legal professional to identify times when alimony can be eliminated in bankruptcy, and you have to take care that you do not stop paying before the court says you can. If you are concerned about how spousal support will be treated if you file bankruptcy, whether you are the recipient or the one paying, call one of our trained bankruptcy and debt management attorneys today for more information. We will review the facts of your case and let you know what to expect. We know how hard it is to budget for your monthly expenses when you are unsure about what funds you owe and what funds you are owed, so we take an approach that allows you to see the whole picture. When you have an accurate view of your monthly income and expenses, you are better able to provide for your family. Contact us today for help.
For more information about spousal support and bankruptcy, contact us at www.DsouzaLegalGroup.com. Our approach is individually tailored to meet your needs, so you can reach your financial goals.