My Ex Is Filing Bankruptcy – Does Alimony End in Massachusetts?
For some people, alimony is a financial lifeline that allows them to make ends meet, especially in the early years after the financial disruption of divorce. It is understandable, then, that those receiving alimony would be concerned if they discover that their ex is planning on filing for bankruptcy protection. Here is what you need to know about filing for bankruptcy and its impact on alimony in Massachusetts- and what steps you can take to protect your rights.
Alimony In Massachusetts
Alimony, also known as spousal support, is a court-ordered payment intended to help a lower-earning spouse maintain financial stability and a similar standard of living after divorce. Massachusetts recognizes four types of alimony:
- General Term Alimony- ongoing support based on the length of the marriage
- Rehabilitative Alimony- short-term support to help a spouse become financially independent
- Reimbursement Alimony-Compensation for contributions made during marriage, such as putting a spouse through school
- Transitional Alimony- temporary support to help a spouse relocate or adjust after divorce
Basics About Bankruptcy
Bankruptcy is a legal process that offers individuals, couples, and businesses a path to financial relief when debt becomes overwhelming. It is designed to provide a fresh start by eliminating (or discharging) certain types of unsecured debts.
Consumers have the option of filing Chapter 7 or Chapter 13 bankruptcy. The key difference between Chapter 7 and Chapter 13 bankruptcy is how they handle debt. Chapter 7 wipes out unsecured debt based on your assets at filing. Most personal property is protected as “exempt.” Chapter 13 focuses on creating a repayment plan to catch up on secured debts while still discharging most unsecured debts.
It is important to note that not all debts qualify for discharge. In bankruptcy, debts are generally classified as either dischargeable or non-dischargeable. Dischargeable debts can be wiped out through the bankruptcy process, relieving the filer from having to repay them. Non-dischargeable debts, on the other hand, cannot be eliminated in bankruptcy and must still be paid.
Debts commonly discharged in bankruptcy include unpaid credit card balances, which often accumulate due to high interest rates or unexpected expenses. Medical bills are another major category, especially for those without adequate health insurance or who have faced serious illness or injury. Bankruptcy can also eliminate unpaid rent from previous leases and past-due utility bills.
However, there are some non-dischargeable debts. Even if a person files for bankruptcy and receives relief from other debts, they will still be responsible for certain financial duties.
Does Alimony Stop After Bankruptcy?
The short answer is no. Alimony does not get discharged due to bankruptcy. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) specifically addressed how marital debts and support obligations are treated in bankruptcy, clarifying which types of debts can and cannot be discharged. Nearly all domestic support obligations are non-dischargeable in Chapter 7. For a Chapter 13 plan to be confirmed by the Bankruptcy Court, the debtor must fully pay all domestic support obligations owed to their former spouse as of the bankruptcy filing date and must also be current on any domestic support obligations incurred after the filing.
Under the Bankruptcy Code, a “domestic support obligation” refers to a court-ordered financial responsibility that is intended as alimony, maintenance, or support. A division of marital property that does not qualify as “in the nature of support” may be dischargeable in bankruptcy. However, for a debt to be considered a non-dischargeable domestic support obligation, two additional conditions must be met. First, the debt must be owed to a former spouse. Second, it must have been established through a court order, such as a divorce judgment or property settlement agreement.
Alimony (as well as child support) obligations are classified by bankruptcy law as high-priority debts. Even though they are unsecured debts (that is, not secured by property, such as a mortgage), the law requires that these support payments be paid first before the person can pay off other unsecured debts (such as credit cards).
So I Am Going To Receive Alimony Despite Bankruptcy?
Well, not necessarily. If your ex is genuinely facing severe financial difficulties and qualifies for bankruptcy, it is possible they may no longer be able to afford their full spousal support payments. For instance, many people file for bankruptcy due to medical debt. If your spouse is ill, they could have problems making alimony payments, independent of whether they file for bankruptcy. Bankruptcy simply signals that their financial situation is poor enough that they need additional help to get financial relief.
In these cases, the ex-spouse can petition the family court to request an alimony modification or reduction of their alimony obligations. To modify alimony, the requesting party must file a “Complaint for Modification” in the county where the original order was issued and properly serve it on the other party. They must also provide evidence supporting the change, such as financial records or proof of employment.
Alimony can be modified due to a “material change” in circumstances. If the court finds sufficient cause, it may adjust the amount or duration of spousal support accordingly. When deciding whether to modify spousal support, the court will consider several factors. They will consider the paying spouse’s current income and expenses, changes in financial circumstances since the original order, and the recipient’s financial needs.
On the flip side, bankruptcy may allow your ex to obtain the financial relief needed to pay alimony. By eliminating or reducing other debts through bankruptcy, your ex may free up resources that allow them to stay current on spousal support payments. Without the burden of overwhelming credit card debt, medical bills, or other unsecured loans, they might be better positioned to meet their financial responsibilities.
Contact an Experienced Massachusetts Alimony Attorney
If you are dealing with alimony issues and either you or your former spouse is considering bankruptcy, it is important to understand how these two areas of law intersect. Bankruptcy can complicate alimony payments, enforcement, and modifications. However, it does not necessarily eliminate the obligation. If you are facing this situation, an experienced alimony attorney will give you the guidance and representation that you need.