Chapter 7 bankruptcy can offer relief from many debts, but it does not eliminate all obligations.
It is important to understand how ongoing alimony and child support payments are treated during bankruptcy.
Alimony and child support are non-dischargeable
Alimony and child support payments are priority debts and cannot be discharged in Chapter 7 bankruptcy in Chapter 7 bankruptcy. This means that individuals filing for bankruptcy must continue to make these payments as required by their divorce or custody agreement. Tennessee courts treat these obligations as necessary for the well-being of dependents, and bankruptcy laws do not relieve debtors from this responsibility.
The automatic stay’s limited impact
When filing for Chapter 7 bankruptcy, an automatic stay goes into effect. This stay temporarily stops most collection efforts from creditors. However, the automatic stay does not apply to alimony or child support. Collection efforts for these obligations can continue, even during the bankruptcy process. Wage garnishments for child support or alimony will also remain in effect, ensuring that dependents receive the support they need.
Modifying support obligations
While Chapter 7 bankruptcy cannot discharge alimony or child support, it may still impact an individual’s overall financial situation. By eliminating other debts, a debtor might be in a better position to meet their support obligations. If a debtor is struggling to keep up with payments, they may request a modification of their alimony or child support through the family court. It is important to note that only the family court, not the bankruptcy court, has the authority to modify these obligations.
Moving forward with support obligations
Chapter 7 bankruptcy does not eliminate the responsibility to pay alimony or child support. Understanding how these obligations interact with bankruptcy and working to address financial concerns can help individuals manage their support payments while navigating the bankruptcy process in Tennessee.
