Bankruptcy Could Increase One’s Ability to Pay Spousal Support

The Law Office of Anthony Greco successfully defended the trial court’s ruling regarding an award of permanent spousal support, an order to liquidate $30,000 in unpaid support, and attorney fees.  The divorce decree provided for Ex-Husband to pay our client spousal support.  Four months later, Wife filed a Motion for Contempt for Ex-Husband’s failure to pay his spousal support obligation.  The same month Ex-Husband filed for Chapter 13 bankruptcy protection.  As a defense, Ex-Husband argued his disabled status, according to the Social Security Administration, and his filing for Chapter 13 Bankruptcy made it impossible to afford the spousal support payments and the lump sum payment to liquidate his “arrearage” (otherwise known as the amount he was behind on his payments).

Appeals Court Upholds Spousal Support Despite Bankruptcy

However, our firm successfully refuted Ex-Husband’s argument on appeal.  We argued that the trial court considered that his business was unprofitable and that he was contemplating bankruptcy when our client received the spousal support award.  The Appeals Court stated that the Ex-Husband’s bankruptcy “…actually eliminated or reduced most of his debt and expenses”.  The Court further held that because Ex-Husband was receiving Social Security Disability benefits he was in a better financial situation to pay the support than he was when the court originally ordered the payments.  Overall, our client retained her spousal support, payments to liquidate the arrearage, and attorney fees.

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Attorney Anthony W. Greco has over 25 years experience fighting for his clients.  Our firm consists of numerous talented attorneys, each with the extensive knowledge and skill necessary to protect our clients’ interests.  Every member of our team treats each client’s case as unique, focusing on what is important to that individual client.  We have represented numerous clients in disputes over their spousal support, as well as other matters within family law.  Click Here to contact us and see what sets us apart from other firms.