Bankruptcy and The Effect on Child and Spousal Support
One of the areas of law that has been in the spotlight in recent times is the effect of bankruptcy on the payments of child and spousal support. A large number of people have started to file for bankruptcy in that a declaration of bankruptcy can bring an automatic end to the payment of child and spousal support. This area of law is one that continues to require further elaborations. This blog provides you with details on this aspect of law with respect to bankruptcy and spousal supports and child supports.
The Bankruptcy Code attempts to protect the rights of the former spouses and children, and therefore it states that any support that has been agreed on or ordered by the court is non-dischargeable in the case of bankruptcy.
The spouse that is being given the support needs not have to file any kind of documentation or proof of their claims to be able to enforce their right of continuing to get support. As far as the cases are concerned, once a debtor files for bankruptcy in the court, all the creditors need to stop all collection with respect to the collection of their debts. This is called an automatic stay. An automatic stay means that all kinds of garnishments, creditors, and banks refrain from calling you at all hours of the night.
What if my Alimony Support and Child Support comes from my Spouse’s Paycheck and My Spouse Files for Bankruptcy?
It is true that any child or spousal support orders which depend on the paycheck of a spouse are generally affected by the filing of bankruptcy. This, however, is subject to a few restrictions. In a wide variety of cases, the spouses can rack up a considerable amount of money by nonpayment of spousal support. The courts make sure that this is not the case and will make sure that these arrears are settled before the filing for bankruptcy takes place.
What if I file a Motion for an Increase in Child Support or Spousal Support and My Spouse Files for Bankruptcy?
In the most common circumstances, the courts are not likely to delay the hearing of the spousal support and child support until the case for bankruptcy has been decided. Instead, the bankrupcy will likely only delay the division of assets and debts for at least six months until the bankruptcy is resolved.
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