You may be under the impression that a bankruptcy filing is used to eliminate the debts that you are struggling to pay off. While this may be somewhat true, you must understand that this rule does not apply to all types of debt. So if you fail to meet your mandatory debt obligations, you may face certain consequences. Follow along to find out the fate of your alimony obligations after a bankruptcy filing and how a proficient Louisville, Kentucky consumer bankruptcy lawyer at Schwartz Bankruptcy Law Center can help you discharge all eligible debts from your immediate responsibility.

What happens to my alimony obligations after a bankruptcy filing?

Your alimony obligations are considered a type of nondischargeable debt. In other words, alimony cannot be released from your legal obligation when you file for bankruptcy. Of note, all domestic support obligations, like child support, fall under this category. This is because alimony is something that was ordered by the Kentucky family court in your divorce decree. Therefore, the Kentucky bankruptcy court does not have the jurisdiction to go against this order.

On the flip side, you must rest assured knowing that you may have dischargeable debts that are to be extinguished upon your bankruptcy filing. Meaning that your monthly alimony payments may be made more affordable during your proceedings.

What happens if I fail to meet my alimony obligations during my proceedings?

Regardless of whether you are filing for Chapter 7 or Chapter 13 bankruptcy, the Kentucky bankruptcy court may grant an automatic stay. With this, all collection efforts on your outstanding debts may be halted, including that of your alimony obligations.

So if you are specifically filing for Chapter 7 bankruptcy, your outstanding alimony payments may be considered a priority debt. With this, you may have to pay off this remaining balance with your available funds before any other unsecured debts. And if you are filing for a Chapter 13 bankruptcy, your outstanding alimony payments may be incorporated into your repayment plan. With this, you may have to pay off this remaining balance within three to five years.

All the while, you must remember that your obligation to make future alimony payments may not change. This is unless you file an official petition for a post-judgment modification with the Kentucky family court. But if you simply fail to meet your alimony obligations without being granted this modification, you may be facing the following consequences:

  • You may have your wages garnished, which requires your employer to withhold some money from your paycheck.
  • You may receive a writ of execution, which requires a sheriff to take money from your bank account or seize your property.
  • You may have a lien placed on your property.
  • You may have your tax refunds, unemployment benefits, etc. intercepted.
  • You may have your driver’s license, business license, professional license, etc. suspended.

You cannot stay silent if you are being overburdened by your alimony obligations during bankruptcy. Rather, you must retain the services of a talented Louisville, Kentucky consumer bankruptcy lawyer. Contact Schwartz Bankruptcy Law Center today.