Bankruptcy and Alimony: Things to Consider

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When it comes to running a business, people filing for bankruptcy should know that they cannot be the administrator of a company until they are released from bankruptcy. Nevertheless, a failed business will affect the filer much less than a self-employed person filing for bankruptcy. The latter could see his or her personal belongings seized.

Know that there are alternatives to bankruptcy, some of which would allow people to improve both their financial situation and retain their right to practice their profession. For any other question, do not hesitate to contact an attorney confidentially. But what happens when alimony is an issue?

Bankruptcy and alimony

If your ex-spouse declares bankruptcy, what happens to their obligations to pay you alimony? This is an issue that can worry people who rely on this amount of money in their budget. First of all, rest assured, even if a former spouse goes bankrupt, he or she will have to continue to pay any child support granted by the court.

The Bankruptcy and Insolvency Act stipulates that people cannot free themselves from this debt when filing for bankruptcy. Payments will have to continue on a normal basis as a matter of priority. Also, if a former spouse has not paid child support or alimony for some time, you will be able to claim these arrears, since they cannot be canceled by bankruptcy. However, be aware that not all debts that follow a divorce are released by bankruptcy.

Can an individual keep their car going when filing for bankruptcy?

As financial difficulties become insurmountable and bankruptcy becomes an option, one of the biggest concerns of people is whether they will be able to keep their cars. It depends on several factors. First of all, if you have submitted a proposal and it has been accepted by your creditors, you will be able to keep your property, including your vehicle, regardless of their value.

If a vehicle is subject to a rental agreement, a conditional sale agreement or an installment sale contract, this means that the car belongs to the owner or creditor until the deal is respected until the end of the lease period. To keep a vehicle subject to this type of contract, payments must be up to date before filing bankruptcy. Visit http://tulsabankruptcylawyers.net/should-i-file-chapter-7-or-chapter-13-bankruptcy/ for more details