The effects of bankruptcy can reverberate throughout your entire life, but they can be complicated even further when you owe child or spousal support.
If you file bankruptcy, your former spouse is notified and will receive 2 notices – once when you file for bankruptcy and again when you receive your discharge. The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) prevents you from being able to discharge child and spousal support. In fact, the BAPCPA requires that you pay back those debts before any others, including back taxes. However, you still have options.
If you are up to date on your payments, you may be able to file a “nondischargeability complaint” and request that the courts allow you either to make catch-up payments if you don’t have enough assets to continue making payments currently, or you can request an adjustment.
On the other hand, if your spouse files for bankruptcy and has been behind on his or her payments, then it’s possible that you may finally get the payment you are due because your spouse’s assets are being liquidated for cash.
Help from a Virginia Divorce Attorney
Consult a dedicated divorce attorney to learn more about how a divorce can impact your child support, spousal support or alimony payments – 1-757-425-5200.