How Filing Bankruptcy Can Disrupt Alimony, Child Support, and Insurance Obligations

Even after a divorce is final, its effects can linger on.  One spouse or the other can be obligated to pay alimony and/or child support, along with maintaining life insurance to protect that stream of income.  But what can happen when one spouse files bankruptcy and reveals a higher income than that used to calculate the payments on that obligation?  How can that affect the payor or the payee?  This month, Meryl and Steve discuss the impact of a bankruptcy filing on an ongoing domestic support obligation like alimony or child support.