We know that considering bankruptcy can be a difficult and emotional decision. What’s more, we also understand the added stress that comes with not being certain if you can make your child support or alimony payments.
Fortunately, there are solutions available to ensure you can maintain this support and we’ve outlined important facts about how bankruptcy, or a consumer proposal, impacts your child support or alimony payments.
No. Child support and alimony payments must be made. If you are considering filing for bankruptcy and you have to pay child support or alimony, you will still have to make these payments, even after the bankruptcy process is complete. You will not be released from these obligations during a bankruptcy filing. As well, these payments cannot be deferred or suspended.
However, if you are behind on your payments, you may be able to reduce the amount of payments made on your other monthly bills and debt payments, so that you have more money to put towards your support or alimony payments.
There are a few steps you can take to either reduce or eliminate your unsecured debts:
If you are receiving child support or alimony payments and your former spouse’s payments are outstanding and he/she files for bankruptcy, you may submit a claim for the money owed to you, and make yourself a “preferred creditor.” Talk to the Licensed Insolvency Trustee (LIT) handling your ex-spouse’s bankruptcy filing about what it means to be a preferred creditor and what you need to do to become one.
You can speak to one of our local debt professionals about your options for reducing or eliminating your unsecured debt. Before considering bankruptcy, our LITs will review your situation with you and go over every method of debt control available to find the best solution to your case. You may request a call today for a free, no-obligation assessment.