Interviewer: How does bankruptcy affect spousal maintenance, alimony, palimony and child support?
Domestic Support Obligations Were Established in 2005
Tanya: It doesn’t. Under the law in 2005, the bankruptcy code was revised and domestic support obligations were instituted. The amounts owed in a divorce, such as child support and alimony are required to be maintained. There’s nothing you can do. The bankruptcy court does nothing about that so when you file for bankruptcy; it doesn’t affect your child support and/or alimony obligations.
Bankruptcy Filing Can Affect Equitable Distribution
Equitable distribution presents more of a bankruptcy issue. Equitable distribution is division of property during a divorce that a bankruptcy court could, to a certain extent, impact. Counsel fees that are owed by parties under certain circumstances cannot be discharged in a bankruptcy, other times they can be depending on the circumstances.