Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Hello and thank you for allowing me to address your legal question.
I’m sorry to tell you that filing for bankruptcy will not relieve you of liability to your ex-spouse. Section 523 of the Bankruptcy Code specifically states that domestic support obligations are not discharged in bankruptcy. Courts have interpreted “domestic support obligation” broadly to include any judge’s order to pay an ex-spouse, regardless of whether it’s alimony or just a lump sum.
Generally, lump sum settlements are paid by selling or mortgaging assets, such as your house.
I know that’s not what you wanted to read, but I hope my answer was helpful. If so, then please remember to ACCEPT my post as that is the only way I will receive credit and compensation for my answer. Thank you and good luck!
DISCLAIMER: Please understand that the complexities of most legal problems cannot be sufficiently addressed in this setting. Accordingly, my post is intended as general information only, and should neither be construed as specific legal advice, nor as an adequate substitute for the retention of legal counsel.