The general rule is that an alimony obligation doesn’t just disappear in bankruptcy. Filing for bankruptcy to avoid an obligation to pay spousal support is a bad idea, because domestic support obligations cannot usually be “discharged” (cancelled or forgiven) in a bankruptcy proceeding.

Is alimony protected from creditors?

Income that is completely protected from creditors Debt collectors and creditors cannot take protected income to repay your debt. But this income is not protected from paying debts like alimony, child support, criminal fines or money you owe the government.

Does spousal support survive bankruptcy?

Filing bankruptcy does not discharge your obligation to pay court ordered alimony, spousal or child support payments. What that means is that any amounts you owe for support prior to filing, will survive your bankruptcy and you will have to make those payments even after your bankruptcy is finished.

Is income tax a priority claim?

A tax claim also has priority if the government has assessed the tax within 240 days before the filing date, even if the tax was due more than 3 years before the filing date, or if the tax is assessable after the filing date. Employment taxes and excise taxes have the same applicable periods as income taxes.

Which of the following types of bankruptcy occurs when a debtor turns over all assets to a trustee?

chapter of bankruptcy that is complete liquidation. this occurs when a debtor turns over all assets to a trustee.

Can alimony be garnished?

California courts may award spousal support when couples go through divorce. Most individuals subject to making spousal support payments have their wages garnished to meet their legal obligations.

How does claiming bankruptcy affect child support?

Even if you complete your bankruptcy case and receive a discharge, you’ll remain responsible for any child support balance and all amounts that come due after filing. In Chapter 13 bankruptcy, you can catch up on your missed child support payments.

Is the payment of alimony dischargeable in bankruptcy?

Like child support in bankruptcy, alimony is a domestic support obligation that cannot be discharged in bankruptcy. However, filing Chapter 7 or Chapter 13 bankruptcy might help an alimony obligor (payor) get other debt discharged and make the alimony payment more affordable. Our bankruptcy lawyers can help you with this.

Can a divorce decree discharge an alimony obligation?

There are two instances where an obligor can discharge alimony in bankruptcy. First, if a divorce decree specifies that an obligation to a spouse is alimony, but the obligation is not actually alimony, then the obligation can be discharged in bankruptcy.

Can a spousal support agreement be discharged in bankruptcy?

Under bankruptcy law, only “domestic support” is non-dischargeable. Payments which are connected to domestic support, but not part of spousal support, can be discharged. For example, in one case the alimony agreement required that a late fee payment be made if the supporting spouse was late on alimony payment.

Are there any debts that can not be discharged in bankruptcy?

Debts Never Discharged in Bankruptcy. The U.S. Bankruptcy Code lists 21 different categories of debts that cannot be discharged. Perhaps the most common debts that cannot be discharged under any circumstances are child support and alimony.