Bankruptcy Effect on Ex-Spouse

Given the economic impact of divorce, you may have concerns about your ex-spouse filing for bankruptcy. More specifically, you may have legitimate concerns about how your ex-spouse filing for bankruptcy will affect you.

Bankruptcy Law

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 is a federal law that governs what debts, including family debts, a person may be excused from paying. It only applies to bankruptcies filed on or after October 17, 2005.

Child Support

Child support payments cannot be excused in a bankruptcy hearing. Only a local court or child support agency can modify your ex-spouse's child support obligation.

Spousal Support

Federal bankruptcy law considers spousal support to be a non-dischargeable debt. Please note, however, that it may be discharged if a bankruptcy court determines that the payments are actually part of a property or debt settlement.

Property and Debt Settlement

Your ex-spouse may be excused from paying a property or debt obligation that arises from a separation agreement or divorce order. After you receive notice, closely follow the case and request that your ex-spouse's obligation not be discharged.

Legal Advice

Your situation is unique and should be thoroughly analyzed by someone licensed to practice before the bankruptcy courts.

References

• U.S. Courts
• Family Law, Fifth Edition; William P. Statsky; 2002