QUESTION
Can the bankruptcy court do anything about back child support?
Asked on Jan 19th, 2017 on Bankruptcy - Nevada
More details to this question:
I understand that child support arrearages are not dischargeable in bankruptcy, and can pay them in full in 5 years. But my ex is trying to get 'interest' in the amount of more than twice what I owe added on, which will put me over the limit.
3 ANSWERS
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Is the interest on past arrearage? Then it is likely that the claim will be allowed if you file a formal objection but your lawyer might want to try it. Is the interest she is seeking an amount set by state statute? While the BR court might have the power to reduce the interest rate, courts are extremely reluctant to modify a statutory interest rate.
Answered on Mar 20th, 2017 at 8:29 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Of course, the custodial parent is entitled to interest on unpaid child support. Oh boo hoo, you don't want to pay the interest. Well, you should have thought of that back when you were spending the child support money on your swinging single lifestyle.
Answered on Mar 20th, 2017 at 8:29 AM
If you are worried about the Chapter 13 debt limit, the trustee can often waive that requirement. As to interest, you can challenge the amount of interest being requested in the proof of claim by objecting to the POC. The judge can then decide.
Answered on Mar 19th, 2017 at 10:19 AM