If your wages are being garnished due to unpaid child support, you might be having a hard time dealing with a smaller paycheck. Luckily, there are things you can do to help the situation. Here are some ideas to consider.
1. Argue the amount owed.
Legally, in many states, paychecks can be garnished for child support as soon as the courts decide on the child-support payment schedule. However, in most cases, your paycheck will not be garnished unless your child-support payments are in arrears, meaning late.
If your ex has brought a case into court and argued that your support payments are in arrears, you can argue the amount owed. In particular, the courts may take into account the income levels of both parents as well as amounts spent on childcare and health insurance. If you believe that your child support due has been assessed inaccurately, you should bring receipts and proof that you have paid money toward your child's upkeep in the past. That may reduce the amount that is garnished from your check.
2. Sell assets or take out loans to cover payments in arrears.
Rather than skimping to live on a super small paycheck, consider paying off the entire amount that is in arrears. Sell anything that you can, and keep in mind that if you don't' sell assets like cars or equipment, your ex may ask the courts to repossess those items to pay your child-support debts.
Similarly, if you have savings in a 401(k), IRA or other type of retirement account, you could take a loan or an early disbursement from it to cover your child support bill and stop the garnishment. Finally, if you have a business, look to see what you can liquidate from it, and be creative. For example, if you have unpaid invoices, sell them to a collection agency for extra cash or take out an advance from a factoring company (a company who gives you an advance on your accounts receivables and then collects them for you).
3. Declare bankruptcy.
Unpaid child-support bills are not dischargeable in a bankruptcy case. That means that if you declare bankruptcy, you will still owe your child support. However, you can get your many other bills discharged or eliminated through bankruptcy. Then, if you are not paying credit-card bills or other debt repayments, it may be easier to handle the financial strain of garnishment.Share
1 August 2016
When I was a child, I regularly visited a local department store. At this lovely business establishment, one could purchase many items including clothing, shoes, and even hotdogs. Sadly, due to competition and other factors, the store closed its doors for the last time several years ago. If the owners of the store had considered bankruptcy options, they might still be meeting customers’ needs today. On this blog, you will learn how to resurrect your business with available bankruptcy alternatives. Regardless of whether you choose to liquidate your assets or reorganize your entity, the opportunity to remain in operation might be an option for you.