answersLogoWhite

0

An alimony obligation cannot usually be discharged in bankruptcy, but must be paid in full, with two important exceptions. If a divorce decree specifies that an obligation to a spouse is alimony, but the obligation is not actually in the nature of alimony, then the obligation can be discharged in bankruptcy. For example, if the divorce decree states that the husband is to pay a marital debt to XYZ Corporation, and further specifies that the husband's payment of the debt shall be treated as alimony, the husband may arguable have the ability to discharge such debt in bankruptcy even though the divorce decree calls his payment of the debt alimony. Also, in certain instances an ex-spouse may be able to discharge an alimony obligation if the obligation has been assigned to a third party. For example, suppose John and Mary Doe divorce. John is ordered to pay Mary alimony of $500.00 per month. John does not pay the alimony and Mary, who needs the money, assigns the right to collect alimony to her father, who gives Mary the $500.00 per month in return for the assignment. Mary's father now owns the right to collect the alimony from John. If John files bankruptcy then the alimony obligation can be discharged to the extent it has been assigned to Mary's father. The United States Bankruptcy Code (Title 11 of the United States Code) states in Section 523 that: (a) A discharge under Section 727, 1141, 1228(a), 1228(b), or 1328(b) of this title does not discharge an individual debtor from any debt . . . (5) to a spouse, former spouse, or child of the debtor, for alimony to, maintenance for, or support of such spouse or child, in connection with a separation agreement, divorce decree or other order of a court of record, determination made in accordance with State or territorial law by a governmental unit, or property settlement agreement, but not to the extent that (A) such debt is assigned to another entity, voluntarily, by operation of law, or otherwise (other than debts assigned pursuant to § 402(a)(26) of the Social Security Act, or any such debt which has been assigned to the Federal Government or to a State or any political subdivision of such State); or (B) such debt includes a liability designation as alimony, maintenance, or support, unless such liability is actually in the nature of alimony, maintenance or support . . . .

User Avatar

Wiki User

18y ago

What else can I help you with?

Related Questions

Can you cosign for a car if you are filing for bankruptcy in the future?

If you are filing for bankruptcy, and you try to cosign -- two things can happen. 1. the lender will turn you down. 2. If the court finds out you have applied for credit the bankruptcy can be stopped. If you mean that the car and loan will be for you during or after the bankruptcy, this still has to be disclosed and again the bankruptcy can be stopped.


Will it affect your car loan if you go bankruptcy?

Yes, filing for bankruptcy can affect your car loan. If you include the car loan in your bankruptcy filing, you may have to surrender the vehicle or negotiate a reaffirmation agreement to keep it. Additionally, bankruptcy can negatively impact your credit score, making it harder to obtain future loans. However, not including the car loan in bankruptcy may allow you to retain the vehicle, provided you continue making payments.


Can a wage garnishment be stopped after filing Chapter 7 in Tennessee?

Yes, a wage garnishment can be stopped after filing for Chapter 7 bankruptcy in Tennessee. Once you file for bankruptcy, an automatic stay goes into effect, which halts most collection actions, including wage garnishments. However, it's essential to inform the court and your employer about the bankruptcy filing to ensure the garnishment is lifted properly. After the bankruptcy process, any eligible debts may be discharged, further protecting you from future garnishments related to those debts.


How many times can a person file for bankruptcy It helps them to build a strong financial future and ensure they do not end up with insolvency again?

The reason for filing bankruptcy is to give a fear free future. It helps them to build a strong financial future and ensure they do not end up with insolvency again. Sometimes we become victim of circumstances. Despite building a robust financial future there are chances that you may have to opt for the same code again.


The Importance of Hiring a Bankruptcy Attorneys?

In today’s sluggish economy, more people than ever are finding it necessary to file for bankruptcy protection. No one plans on ever filing for bankruptcy, but things happen and filing for bankruptcy may be the only way to escape and start over again. In addition to giving you a fresh financial start, filing for bankruptcy can also end the harassing phone calls, reduce your debt obligations considerably, and may prevent banks from foreclosing on your home. If you are considering filing for bankruptcy, it’s critical that you seek the wisdom and expertise of experienced bankruptcy attorneys. Bankruptcy laws are complex and vary from state to state. Only experienced bankruptcy lawyers can help you to understand the law and what documents need to be filed in court. By hiring qualified bankruptcy lawyers, you can help to ensure that your rights and interests are being protected. If you are thinking about filing for bankruptcy on your own, do not do it. Even though you are strapped for cash, you need to retain bankruptcy lawyers to work on your case. Although you can file for bankruptcy on your own, doing so may be detrimental to your already tenuous financial situation and may make matters worse in the future. Filing the proper paperwork and documents with the bankruptcy court is a tedious process and a serious matter that requires the help of an expert. Only bankruptcy lawyers can help to explain all the subtle nuances of the law and how they will apply to your case. For example, bankruptcy lawyers can explain to you how a particular filing will affect your credit score and what assets may be eligible for exemption should you have to file for chapter 7 bankruptcy and your assets get liquidated. In addition to getting advice from bankruptcy lawyers about your case, it’s also very important to have legal representation at your bankruptcy hearing. The government will have agents of the court called bankruptcy trustees on their side to watch out for their interests. Likewise, you should have representation from bankruptcy attorneys to watch out for yours. Bankruptcy proceedings are usually short due to most of the work being done before hand. Although the hearings are short, they are deceptive in that they are quite complex and can have serious effects on your life for the foreseeable future. Only by hiring qualified and experienced bankruptcy lawyers to handle your case can you make sure that you make the right decisions and come out as unscathed as possible from your bankruptcy hearing.


How long does a Chapter 7 bankruptcy stay on your credit report in Michigan?

In almost every state, bankruptcy will stay on your record for 7-10 years. This is something to consider when filing because this can have a major effect on your ability to get a house, car, etc in the future.


Why you have to file bankruptcy?

As a general rule, you file Chapter 7 bankruptcy in a dire financial emergency, where the level of debt is overwhelming and beyond your ability to reasonably pay it off. Most Bankruptcy attorneys advise that $10,000 is the min. amount of debt that anyone should have before consider filing Chapter 7. Anything less, they say, is probably manageable There are a lot of myths and misunderstandings about filing for Chapter 7. One of them is that filing will clear your credit report and give you good credit again....it does not. You get a "fresh start" in that private debts will get discharged, so you do not have to pay them. But your credit score and rating will go down the tubes, and will take a while to recover. This means that you will have a very difficult time when applying for any loans in the future. So you should think long and hard before filing bankruptcy and only do it in cases of financial calamity or emergency. For more on the specific filing procedures and bankruptcy laws of your state, you may want to visit 4BankruptcyLaws.com


What is future of CA?

Bankruptcy appears inevitable.


Need a sample letter on why you filed for bankruptcy?

A sample letter explaining why you filed for bankruptcy should include a brief overview of your financial situation leading up to the decision, such as unexpected medical expenses or job loss. It should also mention any attempts made to resolve debts prior to filing for bankruptcy, such as credit counseling or debt consolidation. Lastly, express your understanding of the impact of bankruptcy and your commitment to rebuilding your financial stability in the future.


On a bankruptcy filing form schedule g what does it mean exec contracts?

An executory contract is one which is to be performed in the future and for which the debtor will be paid when it is performed. If a contractor has a signed agreement to build a house for someone next year, that is an executory contract.


If you filed for chapter 7 bankruptcy in 2002 how long does it stay on your credit report in California?

Filing for bankruptcy can have a lasting effect on your credit and that can cause some difficulties in getting any type of credit. Unfortunately, bankruptcy stays on your credit report for 7-10 years, after which time it is on your to work to get credit back!


What is a filing method that serves as a reminder for future actions?

Tickle