Alimony is an essential financial obligation aimed at ensuring the well-being of children or an ex-spouse. However, when someone faces financial difficulties and considers bankruptcy, it’s crucial to understand how this affects this obligation.
This article, written by the Poupart Syndic team, explores the rules in effect in Quebec and the options available for those facing this challenge.
Alimony and bankruptcy: what you need to know
Bankruptcy allows for the elimination of several types of debts, but certain obligations remain. Alimony is among the debts that cannot be erased by bankruptcy.
Why isn’t alimony discharged by bankruptcy?
Under Canadian law, alimony is an absolute priority. Payments due are not considered ordinary debts, but legal obligations to ensure support for a child or ex-spouse.
What happens to alimony arrears in case of bankruptcy?
If you have alimony arrears, these will not be erased by bankruptcy. You will need to continue paying them, and they could be deducted directly from your income through garnishment or other legal mechanisms.
Alimony calculation and bankruptcy management
Understanding alimony calculation is essential for adapting your budget and making informed decisions, especially in situations of financial difficulty.
Can alimony amounts be revised in case of bankruptcy?
Yes, it’s possible to request a revision of alimony if your financial situation changes significantly. This requires filing a request with the court providing evidence of your inability to pay the current amount.
What alternatives exist to avoid debt accumulation?
Before reaching bankruptcy, several solutions exist to reduce financial pressure:
- The consumer proposal, which allows negotiating with creditors while maintaining alimony payments.
- Debt consolidation to combine several payments into a single lower monthly amount.
- Budget management and financial guidance from a professional.
Specificities and obligations
In Quebec, alimony is governed by strict laws aimed at protecting the rights of children and ex-spouses. Not respecting these obligations can lead to serious legal consequences.
Consequences of non-payment
If you don’t pay your alimony, several measures can be taken against you, including:
- Garnishment of your salary or bank accounts.
- Suspension of your driver’s license or passport.
- Legal actions that could lead to heavier penalties.
The importance of meeting obligations
Even in financial difficulty, it’s crucial to seek a solution before accumulating alimony debts. Communication with your ex-spouse or the court can be a first step in adjusting your payment amounts.
Poupart Syndic: support to better manage your situation
If you’re struggling with debts while having an alimony obligation, Poupart Syndic can help you find the best financial strategy.
Why consult a licensed insolvency trustee?
A trustee can guide you through solutions adapted to your situation, whether it’s a consumer proposal or bankruptcy. The goal is to help you regain financial balance without compromising your legal obligations.
Finding the right solution with Poupart Syndic
Bankruptcy doesn’t allow erasing alimony, but options exist to reduce financial pressure and restructure your debts. If you’re in difficulty, it’s essential to act quickly to avoid serious legal consequences.
To get a free consultation and explore your options, contact Poupart Syndic today. Our experts are here to guide you toward a solution adapted to your situation.
