Filing for bankruptcy in order to avoid alimony is not always the best idea. An obligation to pay spousal support, also considered a domestic support obligation, is almost always not dischargeable. The general rule is that a debt for spousal support, or alimony, cannot be cancelled or forgiven.
What is Alimony? Alimony is spousal support after a divorce ends a marriage. The support provided through alimony, from one former spouse to the other, is usually temporary. Alimony is often arranged when a marriage involved one spouse making majority or all of the income, while the other spouse took care of the home. The “stay at home” spouse is often the recipient of alimony in a divorce. Changing Alimony During Bankruptcy Getting alimony payments adjusted or discharged through bankruptcy is often a daunting undertaking. The supporting spouse should list the supported spouse as a creditor. While it is difficult for alimony to be discharged, there are still a few ways alimony can be changed. If the alimony and the supported spouse are not listed on the bankruptcy petition, alimony discharge becomes nearly impossible. Debt that is not listed in a bankruptcy petition cannot be discharged in bankruptcy court. Although alimony cannot usually be discharged in bankruptcy, there are two exceptions to this rule. The first instance that alimony can be discharged in bankruptcy is when the payment of debt is falsely named as being alimony. If a divorce decree states that an obligation to a spouse is alimony, but the obligation is not actually alimony, then the obligation has the potential to be discharged in bankruptcy. The second instance that alimony could be discharged is if the obligation of debt has been turned over to a third party. For example, two people get divorced and one is obligated to pay the other a certain amount per month. The person in charge of making the payments stop, therefore, the individual relying on those payments must get them from a third party. That third party now owns the right to collect the alimony from the original spouse in charge of the payments. If the spouse in charge of paying alimony files bankruptcy, the alimony obligation can be discharged to the extent it has been legally transferred to the third party. Bankruptcy can have a huge impact on one’s ability to pay alimony. A major factor the court utilizes in order to determine spousal support payments is the supporting spouse’s ability to pay – considering their earning capacity, actual income, assets, and standard of living. If you need to speak with a divorce attorney, contact Adkins Law. Adkins Law has locations in Huntersville and Charlotte for your convenience. If you are considering separation and divorce, contact Adkins Law. Adkins Law has locations in Huntersville and Ballantyne for your convenience. North Carolina is a "no-fault" divorce state. In almost all cases, all that is required to file for divorce in North Carolina is that you have lived in the state for at least six months, and that you have lived separate and apart from your spouse for a year and a day. Once a divorce is filed, it typically takes from four to eight weeks to process. If you need to speak with a divorce attorney, contact Adkins Law. Adkins Law has locations in Huntersville and Ballantyne. When a married couple separates and plans to get divorced, they must go through the process of equitable distribution. If the couple or one spouse owns a business, the business is subject to be divided equitably. If you are contemplating separation or divorce, and you own a business, contact Adkins Law if you would like to discuss your matter in detail. Adkins Law has locations in Lake Norman and south Charlotte. You are legally separated from your spouse if you move out of the marital residence with the intent of remaining separate and apart. Once you remain separate and apart from your spouse for a year and a day, you are eligible to file for an absolute divorce. Once the absolute divorce is granted, all bonds of marriage are terminated between you and your spouse. If you need to speak to a family law attorney in regards to a separation and / or divorce, contact Adkins Law. Adkins Law has locations in Huntersville and south Charlotte. What is the difference in being legally separated and getting a divorce? When one spouse moves out of the marital home with the intent of remaining separate and apart, the couple is legally separated. In North Carolina, however, you must remain continuously separate and apart for a year and a day in order to file for a divorce. Once your divorce is granted, the bonds of matrimony are broken, and your marital status reverts to single. If you need to speak with a family law attorney in regards to seeking information on separation and divorce, contact Adkins Law. Adkins Law has locations in Huntersville and Ballantyne. |
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