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Advice on how to deal with back child support

My husband has $40,000 in child support, will the child support division consider a settlement?

My husband has $40,000 in back child support - they keep garnishing our checking account and we are stressing all the time even though he pays every month for the last 10 years. Will they let us refinance to pay this type of debt off? Will the child support division consider a settlement?

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Bill's Answer
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Updated: Sep 23, 2014

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Highlights

  • Child support is not dischargeable in bankruptcy.
  • Child support cannot be negotiated for a lesser amount, generally speaking.

Generally speaking, a debt consolidation loan can be used to repay any outstanding debt you owe, including delinquent child support. A debt consolidation loan is essentially a home equity loan which you use to pay off other creditors. Since you are borrowing money against your home equity to repay debts, most lenders do not care what type of debt you are using the money to repay. Sometimes, lenders for debt consolidation loans place conditions on the loan, such as requiring you to use the loan proceeds to repay certain accounts. Such restrictions are especially common for borrowers with poor credit.

Bills.com makes it easy to compare mortgage offers and different loan types. Please visit the loan page and find a loan that meets your needs.

If you do not own a home, you may be able to obtain an unsecured debt consolidation loan, which is basically an unsecured personal loan which you use to pay off your creditors. Interest rates on unsecured consolidation loans tend to be significantly higher than the rates on their secured counterparts. Hopefully, you will be able to find a loan that you will fit your needs.

If you would like to read more about debt consolidation loans, I encourage you to visit the Bills.com Debt Consolidation Resources page. Enter your contact information in the Bills.com Savings Center at the top of the page, and we can have several pre-screened lenders contact you to discuss the consolidation options available to you.

Child support cannot be included in credit counseling or debt settlement programs. You may want a free debt consultation with one of Bill’s approved debt help partners.

If you find that a consolidation loan is not a workable solution for you, you may want to contact the child support administration in your area to discuss available plans to bring your child support obligations current - but none of these obligations are dischargeable in a bankruptcy, so none of them can be negotiated for an amount less than what is due.

I wish you the best of luck in resolving your outstanding obligations. I hope that the information I have provided will help you Find. Learn. Save.

Best,

www.Bills.com

2 Comments

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  • 35x35
    Mar, 2010
    Jenny
    Actually chpt 13 can at least stop the exponential tagging of compound interest on that debt if you have employment and assets to catch up when you get the break of the huge jumps in arrears. But I've only seen it work for old debt. But only the obligee can legally let the debt be nulled. If has paid faithfully since teh original non payment that hiked the amount... then maybe the custodial may be talked in to taking a lump sum and forgiving the arrears?
    0 Votes

    • KR
      Mar, 2011
      Kim
      Are you kidding me? Our son is now 24 years old and still in college. I raised him..blood, sweat, tears, the good, bad and the ugly. His father missed everything (by choice) including HS graduation. There was no support as he grew up....and now not even a contribution for the future. FORGIVE the arrears? The money is owed to the grown child! Send the check to UT Austin in the amount of $22,972.54
      1 Votes