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Bankruptcy Alberta

Archive for the ‘Spousal Support’ Category

Spousal Support

Questions: How does spousal support affect bankruptcy?

Answer: Spousal support is treated differently from most other debts in a bankruptcy. Amounts for spousal arrears, if any are a debt that survives a bankruptcy discharge and must be paid.

Payments to one’s bankruptcy estate are based on a person’s net income and spousal support paid while in bankruptcy is an allowable deduction from your net income. Spousal support payments will reduce the amount you have to pay into your bankruptcy. Similarily if you are receiving spousal support you will have to add these amounts to your income for bankruptcy purposes.

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