Child support or spousal support (alimony) claims are not dischargeable in a bankruptcy or consumer proposal and there is no suspension of payments possible. This means that, if you have support or alimony obligations and you are considering filing for bankruptcy, you will still have to pay child or spousal support even after it is complete. You are not released from your child support or alimony claims in a bankruptcy.
If you are the one receiving child support or alimony payments, but your ex-spouse’s or ex-partner’s payments are in arrears and he/she files for bankruptcy, you can submit a claim for the money owed to you, and make yourself a “preferred creditor”. These are priority claims under bankruptcy law. You can submit a claim to receive any support arrears that accumulated in the year (12 months) before filing. This priority is justified by necessity to protect vulnerable individuals.
It is recommended that you speak to your family law lawyer, or the trustee handling your ex-spouse’s or ex-partner’s bankruptcy filing about what you need to do to claim the priority, and what it means to be a preferred creditor.
With over 100 offices, we are located where you need us to be. Call
your local office today.
Contact a local office
Contact a local professional
Take our short quiz