August 23, 2013. It is not uncommon for someone to file for bankruptcy after a divorce. You or your former spouse may be unable to make payments on credit cards and other debts on a single salary. Unfortunately, some ex-spouses try to use bankruptcy to get around living up to the divorce decree. If you're in this position, there are ways you can protect yourself.
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 gives unpaid child support and alimony claims priority over any other creditors' claims, including taxes owed. This means these claims are first in line for payment. If you're owed back support, it's very important that you file a proof of claim with the bankruptcy court to receive payment.
The law requires the trustee in bankruptcy, if there's a claim for a domestic support obligation in a case, to give you and your state's Child Support Enforcement Agency written notice of the bankruptcy and any discharge given to your ex-spouse. The notice must also give you information on how to contact your state's Child Support Enforcement Agency.
When contemplating a resolution during the divorce process, talk to your attorney about bankruptcy concerns if your spouse has a large amount of debt. The way in which the divorce decree is written can reduce the chance that the bankruptcy court will discharge the debt. You can reduce the likelihood that the debt won't be discharged by labeling the debt payments as either support or alimony in the decree.
If you receive notice that your former spouse has filed for bankruptcy or you hear about it otherwise, consult an attorney who can evaluate the situation and help protect your interests.