Will an Ex’s Bankruptcy Affect Your Spousal Support?

 Posted on January 30, 2025 in Spousal Maintenance

You may have breathed a big sigh of relief once your divorce was over and done. Perhaps you received a fair asset settlement and spousal support, and you are beginning to put your life back together. Then, one day, your ex-spouse calls to tell you that he or she is filing for bankruptcy. You cannot help but wonder how this will affect your own financial situation.

What if his or her name is still on your home or another asset that was ordered to be sold and divided after the divorce? Will your spousal maintenance continue after your ex-spouse files for bankruptcy? Since each situation is unique, the best step you can take is to speak to your Will County, IL family law attorney, who can help you determine what you need to do to protect your own financial security.

How Could Your Ex-Spouse’s Bankruptcy Affect Your Spousal Maintenance?

The answer to this question could depend on the type of bankruptcy your ex-spouse files. There will be a repayment plan for Chapter 13 bankruptcy that is meant to settle at least most of the individual’s debts in three to five years through monthly payments. Chapter 13 bankruptcy considers spousal support a priority debt, which places it ahead of other unsecured debts.   

Your spouse could be ordered by the court to include a monthly spousal maintenance payment in the repayment plan. Past-due arrears for court-ordered spousal support are required to be paid in full, no matter what type of bankruptcy is filed. When a person files for bankruptcy of either type, an automatic stay immediately goes into effect that prevents creditors from continuing collection actions against the debtor.

This stay is also applicable to spousal maintenance, so when your ex-spouse files for bankruptcy, your only choice may be to file with the bankruptcy court for relief from the stay. Your attorney can file a motion with the bankruptcy court that is meant to show why the spousal maintenance payments should be exempted from the stay.

Chapter 7 bankruptcy eliminates most unsecured debts, but there are exceptions. Spousal support, child support, and arrears for either of these obligations are not dischargeable debts in Chapter 7 bankruptcy. This means your ex-spouse is obligated to continue to pay your spousal support even after filing for bankruptcy.

That being said, your ex-spouse could file a motion to reconsider the amount of spousal support, citing his or her bankruptcy as proof that there is insufficient income to continue paying the same amount. The judge could potentially order smaller payments or an end to the spousal support altogether.

What About Assets That Are Still Jointly Owned?

If you and your ex-spouse have assets that are still jointly owned (the court may have ordered a sale, but it has not yet occurred), then the situation is much more complex. Like it or not, if you are living in a marital home that remains titled in both spouses’ names, you are seriously involved in your ex-spouse’s bankruptcy.

In Chapter 7 bankruptcy, the bankruptcy will wipe out your ex-spouse’s financial obligation, but because you did not file for bankruptcy, the lender can turn to you for repayment. If your co-owned home is involved in your ex-spouse’s Chapter 7, bankruptcy could wipe out your ex's financial obligation for the mortgage. Since you did not file for bankruptcy, you could be liable for the entire amount.

Contact a DuPage County, IL Divorce Lawyer

Only your attorney can help you determine what you need to do to protect yourself when your ex-spouse decides to file bankruptcy. When you choose a Naperville, IL divorce attorney from Law Office of Ronald L. Hendrix, P.C., you will receive the advice you need for the best possible outcome. In addition to his law degree, Attorney Hendrix holds a master’s degree in guidance and counseling and is a court-appointed mediator. Call 630-355-7776 to schedule your free consultation.