Illinois Bankruptcy Lawyers - Alimony

11 U.S.C. 523 provides discharge will not be allowed for debts owed (5) to a spouse, former spouse, or child of the debtor, for alimony to, maintenance for, or support of such spouse or child, in connection with a separation agreement, divorce decree or other order of a court of record, determination made in accordance with State or territorial law by a governmental unit, or property settlement agreement, but not to the extent that - (A) such debt is assigned to another entity, voluntarily, by operation of law, or otherwise (other than debts assigned pursuant to section 408(a)(3) of the Social Security Act, or any such debt which has been assigned to the Federal Government or to a State or any political subdivision of such State.

Illinois Bankruptcy Lawyers -  In Practice

The interest of children is protected to high degree, and thereafter debts owed to ex-spouses will survive discharge in most circumstances, so long as the debt is actually owed to the spouse. Few bankruptcy lawyers consider bona fide alimony, spousal support, or child support to be dischargeable. Likewise, courts loath to indulge debtors bankruptcy lawyers who seek to escape legitimate child support obligations.

Requirements for discharge and confirmation are complex. Bankruptcy lawyers must carefully construct a financial history for each client before recommending any course of action. Because financial histories are unique, available options under the Code vary. Also, bankruptcy lawyers frequently arrive at different conclusions regarding available options, based on each bankruptcy lawyer's level of experience and expertise. All debtors who have questions regarding discharge and confirmation through the Illinois federal court system should compare the advice of several bankruptcy lawyers to establish the range of options available.

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