Can Alimony Debt Be Discharged in Bankruptcy?

Having to pay alimony on top of your other financial obligations can lead to financial stress and even hardship. But filing bankruptcy in itself cannot relieve a person from the obligation to pay alimony. However, there are potential solutions for people in this situation.

At the law firm of [nap_names id=”FIRM-NAME-3″] in Neptune City and Toms River, we relieve financial stress by helping our clients obtain debt relief. Our attorneys have decades of experience in bankruptcy law, and the knowledge and skills you need.

In a free consultation, we can review your situation and discuss your debt relief options.

How Does Bankruptcy Affect Alimony?

Federal law specifically states that alimony debts cannot be discharged except in two narrowly defined circumstances. However, those same statutes provide means for alimony payers to deal effectively with unmanageable debts.

A Chapter 7 bankruptcy, for example, can completely discharge certain types of debts such as credit card debts, medical bills and personal loans. The extra cash flow you receive will make it much easier to cover your living expenses and any alimony or child support obligations.

A Chapter 13 bankruptcy allows you to roll past-due alimony payments into your monthly debt repayment plan. When developing your debt repayment plan, our Monmouth County bankruptcy lawyers will take care to make it affordable, to provide you with sufficient income to pay your alimony obligations and other debts. Furthermore, it may be possible to modify an order to pay alimony. We can refer you to a qualified family law attorney who can assist you.

When Can Alimony Debts Be Discharged?

There are two situations when alimony debts really can be discharged:

• When a divorce settlement calls for one party to make a cash payment, but the wording of the settlement wrongly characterizes that payment as alimony.
• When the receiver of alimony has assigned the alimony to a third party.

[nap_names id=”FIRM-NAME-3″] can advise you regarding your options.

Free Consultation With A New Jersey Bankruptcy Lawyer

Contact [nap_names id=”FIRM-NAME-3″] to learn more about your debt relief options.