If My Ex Files for Bankruptcy, Will My Spousal Support Stop?

 Posted on October 09, 2024 in Family Law

If you are receiving court-ordered spousal maintenance from your ex – or are in the middle of divorce proceedings and expect to receive spousal support – when you hear that they are filing for bankruptcy, it can be alarming, to say the least. You may wonder whether your ex will be required to continue to pay your spousal support payments even though they are filing for bankruptcy.

How could the bankruptcy affect child support or even the division of assets if your divorce is ongoing? The timing of the bankruptcy will have some bearing on the level of financial impact you could be dealing with. It will also be helpful to contact a knowledgeable Wheaton, IL spousal maintenance attorney from Mirabella, Kincaid, Frederick & Mirabella, LLC to discuss the specifics of your situation.

If I Am Still Married, Does My Spouse Need My Cooperation to File for Bankruptcy?

Suppose you have just filed for divorce. In response, your spouse immediately files for bankruptcy. How will this affect a potential order for spousal support, child support, and the division of marital assets? Your spouse does not need your cooperation to file for bankruptcy. This means that while issues regarding child support and the allocation of parental responsibilities will not be affected by the bankruptcy, the division of marital assets and spousal support could be.  

Once bankruptcy is filed, your spouse’s individually owned property and his or her stake in the marital assets become a part of the bankruptcy estate. This could cause delays in the division of assets, and you could potentially receive fewer marital assets, depending on the situation. If your spouse is left with few assets because of the bankruptcy, your chances of being awarded spousal support become less likely – but not impossible.   

What If You and Your Ex Are Divorced When They File Bankruptcy?

If you and your spouse are already divorced when they file for bankruptcy, and you are receiving court-ordered spousal maintenance and child support, you are looking at a different situation. Under current bankruptcy laws, both child support and spousal maintenance are considered non-dischargeable debts. So, while your ex may be able to either reorganize debt or have most debts completely discharged, they will still be responsible for paying child support and spousal maintenance.

Under Chapter 13 bankruptcy, a repayment plan is prepared to settle most debts over three to five years. Spousal support and child support are considered priority debts under Chapter 13, meaning they must be paid in full before other unsecured debts are addressed.

Can Spousal Support Payments Be Modified Following Bankruptcy Filing?

The caveat here is that your ex could file for a modification of spousal maintenance, claiming the bankruptcy constitutes a significant change in circumstances, thus warranting a modification of the amount of spousal maintenance. If their financial situation has changed drastically as a result of the bankruptcy, a termination of spousal support payments could be granted after factoring in his or her remaining assets, income, and earning potential, as well as your financial circumstances and needs.  

Contact a DuPage County, IL Spousal Maintenance Attorney

If you are concerned that your spousal support may end after your ex-spouse files for bankruptcy, speaking to a Wheaton, IL spousal maintenance lawyer from MKFM Law can help. Our divorce lawyers have extensive experience in all aspects of divorce, including asset division, the allocation of parental responsibilities, spousal support, child support, and much more. We serve family law clients throughout the Chicagoland suburbs at our DuPage and Kane County offices. Contact Mirabella, Kincaid, Frederick & Mirabella, LLC at 630-665-7300 to schedule an initial attorney meeting.