Your former spouse declares bankruptcy and you’re afraid of the consequences?
What happens to his or her obligation to pay you support?
You have chosen to declare personal bankruptcy and are wondering if you should continue to pay support?
N.Séguin, a licensed trustee in insolvency, is available to provide you with information on all debts that are dischargeable and non-dischargeable.
Discover in our article all the important information on bankruptcy and alimony. Our financial advisors are at your disposal to answer all your questions.
Personal bankruptcy in Quebec
Personal bankruptcy allows you to defend yourself against creditors. It is a way to get rid of your debts and stop harassment from creditors. Bankruptcy thus makes it possible to erase one’s debts and put an end to one’s debt situation, provided one is considered insolvent.
However, one must be careful. Some debts are not considered dischargeable, such as debts or obligations related to alimony.
The Bankruptcy and Insolvency Act specifies that the terms of a support agreement must be respected before, during and after personal bankruptcy.
I declared personal bankruptcy
Alimony is not considered dischargeable, so you are obligated to ensure payments throughout the bankruptcy process, even afterward.
Alimony will not be deferred or suspended under any circumstances.
By declaring bankruptcy, all your unsecured debts will be eliminated. This will make it easier for you to make support payments.
I am a recipient of alimony
If your former partner declares bankruptcy, you will be considered a priority creditor.
Be aware that he or she cannot get rid of this type of debt by declaring personal bankruptcy.
If your ex-spouse also owes you support arrears, you can claim them as part of his or her personal bankruptcy.
Contact a family law lawyer or a licensed insolvency trustee to find out your rights.
Team N Seguin will be happy to answer any questions you may have.
What is a preferred creditor?
There are two types of creditors:
- The unsecured creditor: he has no priority in the repayment of the claim.
- The preferred creditor: he has priority of payment over all other holders of claims.
A preferred creditor has certain securities and guarantees compared to other simple creditors. The privileges of each preferred creditor may be different depending on the nature of the securities available to it.
N. Séguin, your licensed insolvency trustee
For all questions concerning alimony and personal bankruptcy as well as debts considered non-dischargeable, contact us at 888-936-5393. Do not hesitate to make an appointment for a free and confidential meeting to learn about all the rules specific to your situation. We will be delighted to welcome you and answer all your questions.