Legal Blog
Bankruptcy and Divorce
While it is best to consult with a bankruptcy lawyer for guidance on bankruptcy issues, an experienced family law attorney can help you determine if it is in your best interest to file for bankruptcy in connection with a divorce. To optimize the results, you and your spouse should work together. Once the conditions of the bankruptcy have been determined, then both spouses will have a realistic picture of their financial obligations.
- Bankruptcy Discharge
A discharge in bankruptcy releases the debtor from personal liability for certain specified debts. A discharge results in a permanent order that prohibits creditors from taking any action to collect the debt, including legal action and communication with the debtor through phone calls and letters. Not all debts are dischargeable, and those that are not, are grounded in public policy considerations.
- Child Support
It is common for child support to be included in an agreement and/or a court order. Child support is paid by the non-custodial parent to the custodial parent representing his portion of the contribution to support the child, and it is not dischargeable in bankruptcy.
- Alimony
Alimony is a court-ordered or agreed upon provision specifying that one spouse must pay money to help support the other spouse. Alimony is not subject to a discharge in bankruptcy.
Considering that public policy issues are behind the exceptions to discharge, it is not surprising that these family law financial obligations are not subject to bankruptcy. If you are considering divorce and need help from a skilled family law attorney, please contact Linda Sorg Ostovitz, at lostovitz@offitkurman.com or telephone (301) 575-0381.
ABOUT LINDA SORG OSTOVITZ
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