Spousal Support and Bankruptcy

In the current economic situation, many people are concerned that if their former spouse files for bankruptcy, they will lose their spousal support, even the amount that is in arrears, or past due. Fortunately, debts from support for former family members, including both spousal support and child support, cannot be discharged. This is good news for former spouses who are owed money.

More good news for former spouses that are owed money is that the money they are owed is considered a priority claim. This means that spousal support payments in arrears are required to be paid in full and rank even higher than taxes on the totem pole of priorities.

Bankruptcy court can also provide an excellent place to determine what has and has not been paid in terms of what is owed and what isn’t. If there have been disputes between former spouses as to what he or she has paid to the other in support, a bankruptcy judge can be excellent for figuring it out. The judge won’t revisit support orders or modify future support but he or she might be able to sort out the accounting issues.

Regardless of how much is owed, bankruptcy can be helpful for an individual who owes spousal support by reducing or eliminating the claims that creditors have over a person’s hard earned dollars. This will help an individual get his or her support payments back under control and on time while also eliminating other debt.

Contact an Austin Spousal Support Lawyer

If you are considering divorce and would like to know more about spousal support, contact the Austin spousal support lawyers of Slater, Kennon & Pugh Ltd.LLP at 512-472-0432.