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#1
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Pay of Child Support Early?
I have roughly 3 years left on child support. Can I pay it off early if I
liquidate some assets? Will the state/county let me? |
#2
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Pay of Child Support Early?
"Simpledog" wrote:
I have roughly 3 years left on child support. Can I pay it off early if I liquidate some assets? Will the state/county let me? It will likely confuse their accounting system which is from sometime in last century. You may be credited for one month's payment and dunned for the others, and you will lose out on the interest or dividends you could earn with sticking the money in a series of laddered CD's or bonds. My 2 cents: Set up a savings or brokerage account in which they send out a recurring automatic payment. They may not be able to pay the CS directly, but you can ask. Its a cheap form of trust account. Two online bankers who I deal with... HSBC Savings and Chase... might be able do it. =R= |
#3
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Pay of Child Support Early?
"Simpledog" wrote in message ... I have roughly 3 years left on child support. Can I pay it off early if I liquidate some assets? Will the state/county let me? I've always wondered the same, although I've never seriously researched It. I've pondered over what would happen If you pay child support and say... won millions In the powerball. Could the ex sue for more money? Is It considered income? If the cse office let you pay off amounts In advance, you could be sly and pay It all off in one lump sum. I dunno... |
#4
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Pay of Child Support Early?
"Dusty Steenbock" wrote in message ... "Simpledog" wrote in message ... I have roughly 3 years left on child support. Can I pay it off early if I liquidate some assets? Will the state/county let me? I've always wondered the same, although I've never seriously researched It. I've pondered over what would happen If you pay child support and say... won millions In the powerball. Could the ex sue for more money? Is It considered income? If the cse office let you pay off amounts In advance, you could be sly and pay It all off in one lump sum. I dunno... I'm willing to bet that they would tell you that any amount you paid in advance was a gift, and that your child needed "ongoing support"--not a lump sum. It would be better to squirrel it away, and pay it out gradually, just in case. |
#5
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Pay of Child Support Early?
"Simpledog" wrote in message ... I have roughly 3 years left on child support. Can I pay it off early if I liquidate some assets? Will the state/county let me? Many states have administrative rules covering excess payments and refunds. They include refunding over-payments within a stipulated period of time, and suspending garnishments if the money has already been sent "into the home" to use up credit balances. The problem with attempting to pay early is it eliminates any possibility of modification for a change of circumstance. If an event occurs (a child dies, the mother dies, custody changes, etc.) there is no way to get the money back. |
#6
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Pay of Child Support Early?
"teachrmama" wrote in message ... "Dusty Steenbock" wrote in message ... "Simpledog" wrote in message ... I have roughly 3 years left on child support. Can I pay it off early if I liquidate some assets? Will the state/county let me? I've always wondered the same, although I've never seriously researched It. I've pondered over what would happen If you pay child support and say... won millions In the powerball. Could the ex sue for more money? Is It considered income? If the cse office let you pay off amounts In advance, you could be sly and pay It all off in one lump sum. I dunno... I'm willing to bet that they would tell you that any amount you paid in advance was a gift, and that your child needed "ongoing support"--not a lump sum. It would be better to squirrel it away, and pay it out gradually, just in case. I agree. But then again, on the first of any given month, are you not also paying for the remainder of that month "in advance"? I don't know that paying off a legal debt would be illegal. And it would seem to me that paying off a "child support" debt is no different than paying off a mortgage. Once it's paid, it's PAID. |
#7
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Pay of Child Support Early?
"Chris" wrote in message ... I agree. But then again, on the first of any given month, are you not also paying for the remainder of that month "in advance"? I don't know that paying off a legal debt would be illegal. And it would seem to me that paying off a "child support" debt is no different than paying off a mortgage. Once it's paid, it's PAID. It is important to understand how the CS collection/disbursement process works and use the correct language. CS obligations "accrue" on the first day of the month. Payments through wage garnishments are made during the month and sent to the CS accounting unit to cover the current month obligation. Future CS accruals do not occur until the first of each month. There is no lump sum owed that can be paid off. Payments in excess of the monthly CS accruals and any arrears amount are considered "overpayments." Overpayments (in my state) are supposed to be returned to the obligor within 30 days. If overpayments are mistakenly sent "into the home" CS collections are "suspended" until the credit balance is used up. These same rules apply to overpayments resulting from tax refund seizures after any arrearage has been paid off. Unless an error occurs with an overpayment slipping past the system, there is no way to pre-pay future CS obligations. One option available to NCP's is to set up a court approved "escrow account" that will hold the amount required to make future CS payments and disburse the money as monthly CS accruals occur. |
#8
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Pay of Child Support Early?
You would wind up paying it off and then getting hit fir more see how to
minimize support at http://www.lowersupport.com "Simpledog" wrote in message ... I have roughly 3 years left on child support. Can I pay it off early if I liquidate some assets? Will the state/county let me? |
#9
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Pay of Child Support Early?
"Bob Whiteside" wrote in message ... "Chris" wrote in message ... I agree. But then again, on the first of any given month, are you not also paying for the remainder of that month "in advance"? I don't know that paying off a legal debt would be illegal. And it would seem to me that paying off a "child support" debt is no different than paying off a mortgage. Once it's paid, it's PAID. It is important to understand how the CS collection/disbursement process works and use the correct language. CS obligations "accrue" on the first day of the month. Payments through wage garnishments are made during the month and sent to the CS accounting unit to cover the current month obligation. Future CS accruals do not occur until the first of each month. There is no lump sum owed that can be paid off. When they tell you that you owe X amount of dollars per month for Y number of months, simple math tells you that the grand total is X times Y. Why not skip the middle man escrow and let the state be their OWN "escrow" company? Payments in excess of the monthly CS accruals and any arrears amount are considered "overpayments." Overpayments (in my state) are supposed to be returned to the obligor within 30 days. If overpayments are mistakenly sent "into the home" CS collections are "suspended" until the credit balance is used up. These same rules apply to overpayments resulting from tax refund seizures after any arrearage has been paid off. Unless an error occurs with an overpayment slipping past the system, there is no way to pre-pay future CS obligations. One option available to NCP's is to set up a court approved "escrow account" that will hold the amount required to make future CS payments and disburse the money as monthly CS accruals occur. |
#10
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Pay of Child Support Early?
"Bob Whiteside" wrote in message ... "Simpledog" wrote in message ... I have roughly 3 years left on child support. Can I pay it off early if I liquidate some assets? Will the state/county let me? Many states have administrative rules covering excess payments and refunds. They include refunding over-payments within a stipulated period of time, and suspending garnishments if the money has already been sent "into the home" to use up credit balances. The problem with attempting to pay early is it eliminates any possibility of modification for a change of circumstance. If an event occurs (a child dies, the mother dies, custody changes, etc.) there is no way to get the money back. Not only that, but based on the same story heard over and over again here, it's a real nightmare trying to recover money collected in excess of the judgement amount. Hence, I have difficulty believing that the government would actually refund any overage; or at least not without a fight. |
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