Is Alimony Dischargeable in Bankruptcy?

Divorce is challenging in so many ways. Often, financial concerns are one of the most significant sources of stress in a divorce. When alimony payments add to the existing financial burden, the situation can become overwhelming.

What happens when you pay alimony and must file for bankruptcy?

Can alimony be discharged like other debts? Is alimony dischargeable in bankruptcy or can you make changes to an existing spousal support arrangement due to financial struggles?

This is a complex issue and there is no one-size-fits-all answer. What do you need to know?

Bankruptcy is Not a Magic Wand

First and foremost, it is essential to understand that while bankruptcy can discharge many types of debts, it is not a magic wand that makes all your financial woes disappear. Bankruptcy law is complex and nuanced.

The rules that govern alimony payments are different from those for other debt types. In general, the court treats alimony payments as priority debts. This means that they are not entirely dischargeable in bankruptcy.

However, there are some exceptions to this rule.

For example, if the alimony payments were awarded as part of a property settlement, rather than as spousal support, they may be dischargeable. Additionally, if the debtor can demonstrate that paying alimony would lead to undue financial hardship, the court may decide to discharge part or all of the debt.

Type of Bankruptcy

Another important factor to consider is the type of bankruptcy you are filing.

If you are filing for Chapter 13 bankruptcy, you may be able to include alimony payments in your repayment plan. This can be a useful strategy if you are struggling to meet your monthly obligations, but it is important to work with an experienced bankruptcy attorney to ensure that the plan is structured in a way that works for your specific circumstances.

There is no easy answer to the question of whether alimony is dischargeable in bankruptcy. Often it isn’t because it’s a court-ordered debt. However, every case is different. This is why it’s so important to work with an experienced bankruptcy attorney when you file.

If you are struggling with alimony payments and are considering bankruptcy, a legal consultation should be your first step. An attorney can help you understand your options and develop a strategy that works for your unique situation. Remember, you are not alone. Many people have gone through the same struggles and come out stronger on the other side. With the right help and support, you can too.

For more information or to schedule a consultation to discuss what debt you can include when you file for bankruptcy, contact R. Flay Cabiness, II, P.C. at (912) 417-5041 (Brunswick, GA); (912) 809-2141 (Hazlehurst, GA) or; (912) 324-3176 (Jesup, GA) to schedule a consultation.