Thursday, May 10, 2012

Is child support or spousal maintenance dischargeable in bankruptcy?

Generally speaking, child support and/or spousal maintenance are not dischargeable in bankruptcy.  If the Bankruptcy Court can be convinced that the spousal maintenance is being paid as a property settlement agreement and is just being called maintenance, then the Court may discharge that portion in a bankruptcy. 

It has become increasingly difficult to discharge these types of debts in bankruptcy.  They are actually given priority treatment and are paid ahead of all other creditors.  Also, in a Chapter 13, if you fail to stay current on child support and/or spousal maintenance, the Court can deny your discharge (the order that says you no longer owe your debts). 

As an Indianapolis, Indiana bankruptcy attorney, I can help you sort through these types of issues.  I can be reached at 317-566-2080. 

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