Child Support & Credit?

"Roger_N" wrote in message
...
My bank judges your credit worthiness partly by your debt to income ratio.
They want your ratio to be no greater than 36%. They are counting my
child support payments in this calculation and coming up with me having
too much debt. Since my CS is 32% of my income, it's hard not to have
above 36% DTI ratio. However, if you subtract my child support from my
income and don't count it as an expense, then my ratio is OK. Anyone here
dealt with this and know if CS is supposed to be figured as income and
debt in Debt to Income ratio calculations?

This scenario happened to me too.

CS, SS, and insurance costs initially took 37% of my gross income and taxes
took another 38%. The result was over 75% of my gross income went toward
court ordered expenses and taxes. That translated to over 55% of my net
income going to monthly court ordered support expenses before the add-ons
for insurance and healthcare.

I was having trouble staying current with support and trying to live on the
small amount I had left. So I applied for a line of credit. The bank
declined my application because my "child support obligation was too high."
I asked the bank manager to look at the application, but he couldn't get the
loan department to budge.

The Catch 22 was I needed the line of credit because my CS obligation was
too high, but I couldn't get the line of credit because my CS obligation was
too high.

My solution was to slow pay the CS and SS so I forced wage withholding which
at the time could only take 50% of my net. Although that created arrears,
the withholding limitation reduced the monthly out-of-pocket payments. I
also ignored the court order requiring life insurance and refused to pay my
share of unreimbursed healthcare expenses without a lot documentation.

The judge held me in contempt for not making up the difference between the
50% statutory withholding limit and what she had ordered me to pay, but
there was nothing she could do to get more money out of me. The judge's
solution was to lecture me on accepting my obligation to "support my former
family."

My bank judges your credit worthiness partly by your debt to income ratio.
They want your ratio to be no greater than 36%. They are counting my child
support payments in this calculation and coming up with me having too much
debt. Since my CS is 32% of my income, it's hard not to have above 36% DTI
ratio. However, if you subtract my child support from my income and don't
count it as an expense, then my ratio is OK. Anyone here dealt with this
and know if CS is supposed to be figured as income and debt in Debt to
Income ratio calculations?

Thanks!
RogerN

I've done some calculations paying 32% of my income in Child Support leaves
me $110 per month for morgage or rent and all other debt. I can't even
afford a good dog house! :-)

"Roger_N" wrote in message
...
I've done some calculations paying 32% of my income in Child Support
leaves me $110 per month for morgage or rent and all other debt. I can't
even afford a good dog house! :-)
==
When we built our house 10 years ago they never asked about child
support-wasn't on the app. We were paying 600. a month to my husband's ex.
When she found out we built a house, modest house that it is, she decided we
must not be paying enough support and took us back to court. The court
promptly doubled the support to 1200. a month. We nearly lost the
house--were in pre-forclosure twice.
Now, the steps are grown and we have been all paid up for several years and
our credit is good again so we're refinancing. The application now requests
all court ordered child support and alimony to be listed as debt. I guess
the banks have found out how much NCPs are being gouged by those two things
and figured they better cover themselves.

That's crazy. I bothers me that we have things like this going on in the
U.S. and then want to condemn other countries for the way they treat their
citizens. We don't need to leave this country to find atrocities. How
about sending the military against our lawmakers and judges!

RogerN

"Bob Whiteside" wrote in message
...
snip

The judge held me in contempt for not making up the difference between the
50% statutory withholding limit and what she had ordered me to pay, but
there was nothing she could do to get more money out of me. The judge's
solution was to lecture me on accepting my obligation to "support my
former family."

"Gini" wrote in message news:YITEj.9$7y3.3@trndny02...
"Roger_N" wrote in message
...
I've done some calculations paying 32% of my income in Child Support
leaves me $110 per month for morgage or rent and all other debt. I can't
even afford a good dog house! :-)
==
When we built our house 10 years ago they never asked about child
support-wasn't on the app. We were paying 600. a month to my husband's ex.
When she found out we built a house, modest house that it is, she decided
we must not be paying enough support and took us back to court. The court
promptly doubled the support to 1200. a month. We nearly lost the
house--were in pre-forclosure twice.
Now, the steps are grown and we have been all paid up for several years
and our credit is good again so we're refinancing. The application now
requests all court ordered child support and alimony to be listed as debt.
I guess the banks have found out how much NCPs are being gouged by those
two things and figured they better cover themselves.

The important issue for NCP's is what is reported to consumer reporting
agencies.

Civil money judgments get listed on personal credit reports. In my state
that is done through the judgment docketing process. CS awards are money
judgments. Getting a Full Satisfaction of Judgment will in some cases
remove prior money judgments from credit reports, and in other cases show
the money judgment as being paid in full.

Arrearages are reported by CS administration after notice to the NCP giving
them opportunity to object. Currently my state allows only two reasons to
challenge the reporting of arrearage CS, i.e. they are not the person who
owes the CS, or the amount is incorrect. A revision to the objections rule
is in the "comments" process to add a third challenge/objection based on the
arrears were set for a past period of time or are the result of a
modification increasing the amount due.

"Roger_N" wrote in message
...
I've done some calculations paying 32% of my income in Child Support
leaves
me $110 per month for morgage or rent and all other debt. I can't even
afford a good dog house! :-)

Precisely. Their goal is to make certain that you have NOTHING,
and to get you incarcerated.

"Gini" wrote in message news:YITEj.9$7y3.3@trndny02...
"Roger_N" wrote in message
...
I've done some calculations paying 32% of my income in Child Support
leaves me $110 per month for morgage or rent and all other debt. I
can't
even afford a good dog house! :-)
==
When we built our house 10 years ago they never asked about child
support-wasn't on the app. We were paying 600. a month to my husband's ex.
When she found out we built a house, modest house that it is, she decided
we
must not be paying enough support and took us back to court. The court
promptly doubled the support to 1200. a month. We nearly lost the
house--were in pre-forclosure twice.
Now, the steps are grown and we have been all paid up for several years
and
our credit is good again so we're refinancing. The application now
requests
all court ordered child support and alimony to be listed as debt. I guess
the banks have found out how much NCPs are being gouged by those two
things
and figured they better cover themselves.

All the damage these dirtbags cause by ripping off the NCP, and in the end
STILL they wind up with nothing. As they say, easy come............

"Chris" wrote in message
...

"Roger_N" wrote in message
...
I've done some calculations paying 32% of my income in Child Support
leaves
me $110 per month for morgage or rent and all other debt. I can't even
afford a good dog house! :-)

Precisely. Their goal is to make certain that you have NOTHING,
and to get you incarcerated.

Which means that they get nothing too. Good plan..

On Mar 22, 2:53*pm, "Dusty" wrote:
"Chris" wrote in message

...



"Roger_N" wrote in message
...
I've done some calculations paying 32% of my income in Child Support
leaves
me $110 per month for morgage or rent and all other debt. *I can't even
afford a good dog house! *:-)

Precisely. Their goal is to make certain that you have NOTHING,
and to get you incarcerated.

Which means that they get nothing too. *Good plan..

Oh my...We just sold our house recently...we can no longer afford it
due to the idiot ex-wife asking
for more money, lying about my husband not paying, therefore, messed
up credit, garnished wages, etc...

Now my husband's credit was damaged enough by these idiots at the CSE
office, but I thought
that at least now we'll go to an apartment and attempt to start
over...ONCE AGAIN...Now I'm terrified
that if they look at this money as debt for my husband, we won't be
able to afford anything!!! This
is just outrageous! Yes, the B#$%#$^%#$CH ex-wife got the increase so
SHE could buy another
house...

If we don't even get an apartment approved, I swear she'll be sorry
she ever met me...This is just
the last straw for me...I'm so sick of these garbage women...