San Jose Bankruptcy Attorney comments on the interest and surcharges on unpaid child support driving some parents to bankruptcy and facing jail time.
To cut down on the amount of unpaid child support, many states have enacted provisions that allow for interest and surcharges to be added to delinquent child support accounts. But given the state of the economy and the inability of many to find work, some have lost hope that they will ever be able to get caught up on their child support payments. The threat of jail time is almost like adding insult to injury for those who are facing that prospect.
In 1996 Michigan, like many other states including California, added a provision to charge interest on delinquent child support accounts. But the law did not give judges discretion in applying the penalty to accounts. The law made no distinction between someone who was a deadbeat and refusing to pay their child support and someone who was unable to pay because of job loss or injury.
While child support payments, like other domestic support obligations are not dischargeable in bankruptcy, many parents delinquent in their payments have filed for bankruptcy protection to remove all of their other debts so they can avoid the specter of a felony charge and jail time for not paying child support. With unemployment in the double-digits, there are a growing number of people who have exhausted their unemployment benefits and cannot find work. They fall farther and farther behind in their payments and the interest added on to their account leads them to believe them they will be paying child support for the rest of their lives, once they find a job.
Michigan rules derail child support payments, The Detroit News, December 7, 2009
If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.