Due to the financial impact of divorce, it is not uncommon for one or both spouses to file for Bankruptcy. The law does not allow the payor spouse to discharge these obligations in Bankruptcy. If the payor spouse files for personal Bankruptcy under Chapter 7 of the United States Bankruptcy Code, any alimony, spousal maintenance, or support obligations that are paid to a former spouse under a separation agreement or a divorce decree, are not dischargeable. The spouse who receives the support does not have to file any type of proofs of claim or objections to the Bankruptcy Court in order to enforce their rights to continue to receive support.
In Bankruptcy Court, automatic stays are placed on all creditors to stop actions to collect their debts, including foreclosures, garnishments, bank levies, and general creditors. This does not apply to the enforcement of the collection of child support or alimony. These types of obligations have a super-priority under the Bankruptcy Code.
Contact the New Jersey Family Law Offices of Lyons & Associates
To obtain the information you need and advice you want, or to discuss the particulars of your situation, please schedule a confidential consultation with New Jersey divorce and family law attorneys at Lyons & Associates by calling 908-575-9777, or fill out our intake form.