No, spousal support, or alimony, typically cannot be changed with a bankruptcy filing. If a person has been ordered to pay spousal support, they do still have to follow that court order. Even if their bankruptcy case is successful, they cannot eliminate alimony any more than it could waive an obligation to pay child support.
The reasoning is that the court has issued a binding order with another person’s best interests in mind. Alimony is supposed to provide financial support for someone who needs it in the wake of divorce, just as child support is set up to focus on the best interests of the child and give them the financial support they would have had if their parents had stayed married. Even if other types of debt are discharged, these financial obligations remain.
Is bankruptcy still helpful?
Yes, bankruptcy can still be helpful. For one thing, eliminating or consolidating other debt could make spousal support more affordable. A person may have been struggling to pay their monthly support obligations due to other outstanding debt, like high credit card bills, so reorganizing that debt through a Chapter 13 plan or eliminating some of it through a Chapter 7 bankruptcy filing can make it possible for them to make the appropriate alimony payments.
In some cases, a person can modify alimony support. Someone who loses their job, for instance, may not realistically be able to pay. But the tactic to do this would be through a modification of the standing court order, rather than a bankruptcy filing.
Navigating complex bankruptcy cases
It is very important to understand the complexities of bankruptcy, including what types of debts can and cannot be discharged. Those going through this process need to know exactly what legal steps to take.