Partner/Owner at Debt Advisors Law Offices
Practice Areas: Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, Stop Foreclosure
Balancing financial obligations after divorce is never simple, especially when spousal maintenance and debt intersect. Many people wonder if filing bankruptcy can ease the burden of alimony or change what they owe. The truth is more complex. While bankruptcy offers relief from certain debts, family-related obligations such as alimony and child support are treated differently under federal law.
For example, someone filing Chapter 7 bankruptcy in Wisconsin may eliminate credit cards or medical bills but will still be responsible for support payments ordered by the court. Understanding these distinctions is critical before making financial decisions during or after divorce.
This article explains how bankruptcy and alimony connect, how Wisconsin law defines spousal maintenance, and what happens when divorce and bankruptcy proceedings overlap. By the end, you’ll know what the law allows, what it prevents, and when legal guidance can make the difference.
In Wisconsin, alimony is legally known as spousal maintenance. It is financial support paid by one spouse to the other after divorce. Courts award it to ensure the lower-earning or non-earning spouse has the resources to meet basic needs after separation.
Judges consider many factors when setting spousal maintenance. These include the length of the marriage, the age and health of both spouses, property division, earning capacity, education, and even contributions made during the marriage, such as one spouse supporting the other through school. Unlike child support, there is no formula in Wisconsin.
Each case depends on the facts presented. Maintenance may be temporary or permanent, and courts can modify awards if a substantial change occurs later.
In Wisconsin, spousal maintenance is determined on a case-by-case basis. There is no fixed formula, making judicial discretion a key factor. Source: Wisconsin Legislature
Bankruptcy is designed to reduce or restructure overwhelming debt, but not all financial obligations are treated the same. Alimony falls under a special category called “domestic support obligations.”
Domestic support obligations, including alimony and child support, are protected from discharge. That means they cannot be erased through bankruptcy. Even if you file under Chapter 7 or Chapter 13, you remain responsible for paying these amounts.
In fact, support obligations often take priority over other unsecured debts like credit cards or medical bills.
Under the U.S. Bankruptcy Code, domestic support obligations including alimony and child support are non-dischargeable debts. This means they cannot be wiped out in bankruptcy, regardless of the chapter filed. Source: U.S. Courts
Alimony is non-dischargeable in both Chapter 7 and Chapter 13. Still, the way each type of bankruptcy works can influence how easily someone manages payments.
In Chapter 7, non-exempt assets may be sold to repay debts, but obligations like spousal maintenance remain untouched. What Chapter 7 can do is eliminate unsecured debts such as credit cards, freeing up income that may help with ongoing maintenance.
In Chapter 13, debtors enter a repayment plan lasting three to five years. Alimony must still be paid, but the restructuring of other debts can create space in the budget. This sometimes helps people stay current on support obligations while handling other financial challenges.
Federal law (11 U.S.C. § 523) lists alimony as a debt not dischargeable in bankruptcy proceedings.
The timing of divorce and bankruptcy can significantly affect the outcome. If bankruptcy is filed before divorce, the automatic stay prevents creditors from pursuing collection actions. However, this stay does not apply to alimony or child support. Courts may still enforce these obligations.
If bankruptcy is filed during divorce proceedings, certain financial matters such as property division may be delayed until the stay is lifted. On the other hand, if bankruptcy occurs after divorce, all past-due alimony remains enforceable. Filing bankruptcy does not erase what is owed to an ex-spouse.
The automatic stay generally halts most creditor collection activities, but it does not stop alimony or child support enforcement.
Bankruptcy itself does not reduce or cancel alimony, but it can create circumstances that allow modification. If the paying spouse experiences a job loss or major financial hardship, they may file a motion in family court requesting an adjustment.
Only the family court can modify maintenance; bankruptcy courts do not have authority over the amount set. In rare situations, if alimony rights are reassigned to a third party like a lender, the payments may no longer qualify as spousal support.
However, most obligations remain intact. The central issue is always whether the paying spouse can reasonably meet both bankruptcy obligations and support payments.
Wisconsin’s divorce rates highlight the importance of understanding these issues. For example, Wisconsin Rapids has one of the highest divorce rates in the state, with nearly one in five residents divorced. Many in such communities face spousal maintenance obligations while also carrying debt.
Because Wisconsin law uses the term “spousal maintenance,” it is critical for residents to recognize that bankruptcy does not cancel this duty. Instead, bankruptcy may free up resources to stay current or may lead to modification requests if a major financial change occurs.
|
Debt Type |
Dischargeable in Chapter 7 | Dischargeable in Chapter 13 |
Notes |
| Credit card debt | Yes | Yes (with repayment plan) | Commonly discharged |
| Medical bills | Yes | Yes | Often reason for filing |
| Student loans | Rarely | Rarely | Only under “undue hardship” |
| Child support | No | No | Always non-dischargeable |
| Alimony (spousal maintenance) | No | No | Always non-dischargeable |
No. Alimony is a domestic support obligation and cannot be discharged in bankruptcy.
Bankruptcy does not change alimony amounts. Only family courts may modify payments.
Alimony must still be paid, but restructuring other debts may make payments easier.
No. The automatic stay does not block alimony or child support enforcement.
Yes. It may simplify debt division, but support obligations still remain.
Yes. Wisconsin calls it spousal maintenance and uses judicial discretion instead of formulas.
Alimony, or spousal maintenance in Wisconsin, remains enforceable even after bankruptcy. While filing under Chapter 7 or Chapter 13 can ease other financial pressures, support obligations are always prioritized. Timing of divorce and bankruptcy filings, the type of bankruptcy, and individual financial changes all shape how these responsibilities are managed.
If you are facing both bankruptcy and spousal maintenance, professional guidance is essential. Speaking with an experienced Wisconsin bankruptcy attorney can help you understand your rights, weigh your options, and find the best path forward. Every case is unique, and informed decisions are the first step toward a fresh start.
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.
