Partner/Owner at Debt Advisors Law Offices
Practice Areas: Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, Stop Foreclosure
Divorce can change your finances in many ways. Some people may struggle with credit cards, loans, or other debts while also making alimony payments.
In Wisconsin, alimony is called spousal maintenance. Many people wonder if bankruptcy can lower or remove these payments. Usually, it cannot.
Bankruptcy may help with some debts, but alimony follows different rules. If a court orders you to pay spousal maintenance, filing Chapter 7 or Chapter 13 bankruptcy in Wisconsin does not erase that responsibility.
This guide explains how bankruptcy affects alimony, what debts bankruptcy may help with, and what options you may have if your financial situation changes.
Spousal maintenance is money one spouse pays to the other after divorce. A court may order maintenance when one spouse needs financial support after the marriage ends. The goal is to help both spouses move forward after divorce. Wisconsin does not use a set formula to decide maintenance. Each case is different.
A judge may consider:
For example, a spouse who stayed home with children or helped the other spouse complete school may be considered.
A court can change a maintenance order later if there is a major change in circumstances. You can review Wisconsin’s rules on spousal maintenance under Wis. Stat. § 767.56.
No. Bankruptcy does not remove alimony or spousal maintenance. Federal bankruptcy law gives special protection to family support payments. These payments are treated differently from regular debts like credit cards or medical bills.
This means:
However, bankruptcy may remove other debts. For example, eliminating credit card debt may give you more room in your budget to keep up with support payments.
The U.S. Courts Bankruptcy Basics guide explains that some debts, including support obligations, cannot be discharged through bankruptcy.
Bankruptcy may reduce other debt problems, but it does not cancel court-ordered support payments.
Chapter 7 bankruptcy is often used by people who cannot pay their unsecured debts.
It may help with debts such as:
Removing these debts may make monthly expenses easier to manage. However, your alimony payments continue after filing Chapter 7. The bankruptcy trustee may review your finances, but the trustee does not change your support order. Only the family court can change the amount you owe.
Chapter 13 bankruptcy works differently. Instead of removing debt immediately, Chapter 13 creates a repayment plan. The plan usually lasts three to five years.
Chapter 13 may help people who need time to manage other debts while keeping up with important payments.
You must continue paying current alimony during your bankruptcy case. Falling behind on support payments can create additional legal problems.
Chapter 13 may help organize your debt, but it does not reduce your spousal maintenance obligation.
The timing of divorce and bankruptcy can affect your options. If you file bankruptcy before or during a divorce, some financial issues may become more complicated. For example, property division and debt issues may need careful review. Bankruptcy may stop many creditor collection actions through the automatic stay.
However, this protection does not usually stop actions involving:
If you file bankruptcy after divorce, unpaid alimony remains due. Bankruptcy can change how some debts are handled, but it does not replace a divorce court order.
No. A bankruptcy court cannot lower your alimony payment. If your financial situation changes, you must ask the family court to review the support order.
A change may be considered after events such as:
Bankruptcy records may show that your finances have changed, but the family court decides whether your payment should change.
Bankruptcy can treat different debts in different ways.
|
Debt Type |
Chapter 7 |
Chapter 13 |
General Treatment |
| Credit cards | Often yes | Through repayment plan | Common unsecured debt |
| Medical bills | Often yes | Through repayment plan | Often dischargeable |
| Personal loans | Often yes | Through repayment plan | Depends on the case |
| Child support | No | No | Must continue paying |
| Alimony | No | No | Must continue paying |
| Student loans | Usually no | Usually no | Special rules apply |
Some debts have special rules. These may include taxes, student loans, and debts connected to property.
No. Filing for bankruptcy does not stop your responsibility to pay court-ordered alimony or spousal maintenance.
No. Alimony is protected under bankruptcy law and cannot be removed through Chapter 7.
No. Chapter 13 may help organize other debts, but it does not reduce your support payments.
No. Bankruptcy cannot change a divorce court’s support order. You must request changes through family court.
Usually no. The automatic stay does not stop enforcement of most family support obligations.
It depends on your situation. The timing can affect your debts, property, and available options.
Alimony and bankruptcy follow different rules. While bankruptcy may help with certain debts, spousal maintenance remains your responsibility.
If divorce, debt, and financial changes are happening at the same time, reviewing your options early can help you make informed decisions.
Our attorneys at Debt Advisors Law Offices can review your financial situation and explain your bankruptcy options under Wisconsin law. A Wisconsin bankruptcy attorney can help you understand how filing may affect your debts and support obligations.
Debt Advisors Law Offices is a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code.
Learn about bankruptcy protections, types of bankruptcy, how to get started, what to expect, and who to trust. Filing bankruptcy is the ONLY way to completely eliminate debt. If bankruptcy is right for you, it offers powerful protections that cannot be achieved through alternative solutions such as hardship relief, loans, or debt settlement.
