Ready to say goodbye to student loan debt for good? Learn More
X

How Does Bankruptcy Affect Alimony?

2 minute read Upsolve is a nonprofit that helps you get out of debt with education and free debt relief tools, like our bankruptcy filing tool. Think TurboTax for bankruptcy. Get free education, customer support, and community. Featured in Forbes 4x and funded by institutions like Harvard University so we'll never ask you for a credit card.  Explore our free tool


In a Nutshell

Alimony impacts your bankruptcy case differently if you’re paying alimony than if you’re receiving alimony. If you pay alimony, you must list it on your Schedule J as an expense. You must also usually continue to make payments while your case is pending and after you receive your bankruptcy discharge. Bankruptcy doesn’t eliminate your obligation to pay court-ordered alimony. If you receive alimony, you must list the amount as income on Schedule I and on the means test calculation form.

Written by the Upsolve TeamLegally reviewed by Lawyer John Coble
Updated May 4, 2022


While laws regarding spousal support have changed significantly in recent years, the Chapter 7 alimony laws in the Bankruptcy Code have largely remained the same. Bankruptcy has only a limited and indirect effect on spousal support or alimony obligations. A person paying alimony is still obligated to pay that support despite filing for bankruptcy. Alimony is not a dischargeable debt.

What is Alimony?

Alimony, which is sometimes called spousal support, is court-ordered provisions to be paid to one spouse by the other spouse after the divorce or separation. Alimony may be paid in a lump sum or in payments on a set schedule, such as weekly or monthly.

The spouse making the payments is the “supporting spouse.” They make payments to the “dependent spouse.” Alimony is awarded when one spouse needs the funds to take care of his or her needs and the other spouse has adequate income and can afford to pay alimony.For example, if Joe pays his ex-wife Nora $2,500 each month in alimony, he will still have the obligation to pay Nora during and after his bankruptcy case concludes. He will also likely have to pay any past-due spousal support.

Upsolve Member Experiences

1,914+ Members Online
Jo Pagett
Jo Pagett
★★★★★ 1 day ago
Upsolve was fast and easy from start to file was about a week and no money paid there needs to be more sites like this for help in all financial areas
Read more Google reviews ⇾
Christopher Gonder
Christopher Gonder
★★★★★ 1 day ago
Very cost effective compared to spending thousands of dollars on an attorney, fortunately it was rather simple and quick to file everything since I don't have much that needed to be filed. Overall, great alternative for those who are limited on funding and need to file for bankruptcy.
Read more Google reviews ⇾
Meredith Cooper
Meredith Cooper
★★★★★ 2 days ago
This is an amazing service! They provide you with all the assistance that you need, from beginning to end. The clerk at the bankruptcy court office said, “Upsolve is a wonderful service. The folks that use them always come in completely prepared.” I totally agree, and this service saved me thousands of dollars! Having them available, helped to relieve my stress/anxiety level.
Read more Google reviews ⇾

What if I’m the One Receiving Alimony?

Let’s stick with our example from above. If Nora files Chapter 7, she must report her alimony payments from Joe on both Schedule I and any 122A means test forms she files.

If you’re receiving alimony payments than you must report the amount of alimony you receive each month. If your payments vary from month to month, the best practice is to take the last six months of receipts and use the average monthly figure.

The alimony payments you receive may impact how the means test is calculated.

The Long Term Effect of Bankruptcy on Alimony

Bankruptcy does not discharge alimony obligations. However, the automatic stay may influence a person’s obligation to pay alimony during a pending bankruptcy. Filing for bankruptcy may also influence any modifications to alimony obligations.

In any case, there are certain exceptions to the application of the automatic stay. Legal actions involving alimony payments are one of those exceptions. So long as the legal proceeding does not involve the non-filing spouse seeking to distribute property that is considered to be part of the bankruptcy estate, the automatic stay will not prohibit the commencement or continuation of such a case in civil or domestic relations court.

If a debtor’s income is being withheld for family support obligations as the result of an administrative or judicial order, the withholding will continue even after a bankruptcy is filed. The automatic stay will not be applied to stop wage garnishments for the purpose of family support obligations.

Conclusion

If you receive alimony, you must list the amount on Schedule I and on Form 122A of your petition. If you pay alimony, you must list it on your Schedule J.

The automatic stay may affect your obligation to pay alimony during a pending bankruptcy, but not necessarily so. Any wage garnishments for the purpose of alimony will continue even after a bankruptcy case is filed. Legal proceedings involving alimony obligation matters, in most cases, are an exception to the automatic stay.



Written By:

The Upsolve Team

Upsolve is fortunate to have a remarkable team of bankruptcy attorneys, as well as finance and consumer rights professionals, as contributing writers to help us keep our content up to date, informative, and helpful to everyone.

Lawyer John Coble

LinkedIn

John Coble has practiced as both a CPA and an attorney. John's legal specialties were tax law and bankruptcy law. Before starting his own firm, John worked for law offices, accounting firms, and one of America's largest banks. John handled almost 1,500 bankruptcy cases in the eig... read more about Lawyer John Coble

It's easy to get debt help

Choose one of the options below to get assistance with your debt:

Considering Bankruptcy?

Our free tool has helped 14,891+ families file bankruptcy on their own. We're funded by Harvard University and will never ask you for a credit card or payment.

Explore Free Tool
14,891 families have filed with Upsolve! ☆
or

Private Attorney

Get a free evaluation from an independent law firm.

Find Attorney

Learning Center

Research and understand your options with our articles and guides.

Go to Learning Center →

Already an Upsolve user?

Read Support Articles →
Y-Combinator

Upsolve is a 501(c)(3) nonprofit that started in 2016. Our mission is to help low-income families resolve their debt and fix their credit using free software tools. Our team includes debt experts and engineers who care deeply about making the financial system accessible to everyone. We have world-class funders that include the U.S. government, former Google CEO Eric Schmidt, and leading foundations.

To learn more, read why we started Upsolve in 2016, our reviews from past users, and our press coverage from places like the New York Times and Wall Street Journal.