Is alimony revoked if the payor declares bankruptcy?

In Virginia, alimony can be revoked if the payor declares bankruptcy. This is because the bankruptcy code views alimony payments as a priority debt. When a payor files for bankruptcy, they must list all of their creditors, including their former spouse who is receiving alimony. When the bankruptcy court begins to distribute the payor’s assets to their creditors, the former spouse will be at the top of the list. Since alimony is considered a priority debt, it must be paid first before other debts, such as credit cards and medical bills. The bankruptcy court will then evaluate how much money the payor has available for their creditors. If the alimony payments are too high and the payor does not have enough money to pay off all their creditors, then the court can reduce or revoke the alimony payments. However, if the payor has enough money to pay all their creditors, the alimony payments will remain the same. It is important to note that bankruptcy does not automatically revoke alimony payments. It depends on the payor’s financial situation and the court’s decision. If you are currently paying or receiving alimony in Virginia and are considering filing for bankruptcy, it is recommended that you contact an experienced attorney who can advise you on the best course of action.

Related FAQs

Are alimony payments considered alimony for tax purposes?
Are alimony payments considered part of the marital estate?
What happens if the payor moves out of the country?
Can alimony be increased if the payor's income increases?
Can alimony be altered or revoked?
Is alimony subject to garnishment?
Can alimony be modified?
Can a court award retroactive alimony payments?
Is alimony payment typically considered a taxable event?
How is alimony calculated?

Is alimony revoked if the payor declares bankruptcy?

Related FAQs

Related Blog Posts