chapter 13 and child support owed for many years

[kimsanders]

I live in Texas. We were dismissed recently due to being late/missing some pymnts., but we are in the process of filing a whole new case w/ changes being made so that we are able to make the new,modified,lower,scheduled payments.Well, recently I recieved a $10,000.00 settlement check from my ex husband who owed approx. $37,000.00 in back child support since 1995.Anyways, my question is this, does the standing office of chapter 13 have the right to tell me what I can and can't do w/ the settlement check??
I want to pay people back that I owe money to (that aren't in the plan) but my lawyer said that they have to wait to be paid until I am out of bankruptcy in 3 years. Aren't these 2 seperate issues that do not pertain to the bank. law?

[HomeGuru]

Originally Posted by kimsanders

I live in Texas. We were dismissed recently due to being late/missing some pymnts., but we are in the process of filing a whole new case w/ changes being made so that we are able to make the new,modified,lower,scheduled payments.Well, recently I recieved a $10,000.00 settlement check from my ex husband who owed approx. $37,000.00 in back child support since 1995.Anyways, my question is this, does the standing office of chapter 13 have the right to tell me what I can and can't do w/ the settlement check??

**A: if your BK was dismissed, then the Trustee has no jurisdiction over the money.
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I want to pay people back that I owe money to (that aren't in the plan) but my lawyer said that they have to wait to be paid until I am out of bankruptcy in 3 years. Aren't these 2 seperate issues that do not pertain to the bank. law?

**A: do not pay anyone back.

[Ladynred]

First of all, child support is supposed to be for the benefit of YOUR CHILDREN, not you. While child support payments are usually exempt, because the money isn't for YOU, with a 10K settlement, the Trustee MAY want a piece. I suggest you get your lawyer to figure this out ahead of time.

Do NOT go paying people back, the payments could be retrieved by the Trustee as preferential,

[kimsanders]

First of all, thank you for your responses!-Secondly,I, too, agree that child support is to benefit the children, not ME. So,before anyone is led to believe that the people that I want to pay back are lenders who financed an elaborate , european vacation for ME,that is simply not the case. It happens to be an elderly couple who loaned us enough $$$ for our mortgage pymnt. during a time when the man who SUPPORTED another man's children for 10 years, was laid off from the aerodynamics industry for several months.
Now,having said that, I would like to know what exactly do you mean by "the payments can be retrieved by the trustee as preferential"? That I "preferred" to pay back an elderly couple who really needs it, as opposed to a multimillion dollar corporation? What if a written agreement was drawn up, would that be tangible enough to the trustee?Or does it basically depend on the trustee's mood that day as to decide if it is exempt or not?Getting caught up on utilities, clothes and shoes for the kids,etc....,ie...things that were "let go" due to the lay off., are those acceptable/tangible ?
THANK YOU for your advice in advance!!

[bigun]

What if a written agreement was drawn up, would that be tangible enough to the trustee?Or does it basically depend on the trustee's mood that day as to decide if it is exempt or not?Getting caught up on utilities, clothes and shoes for the kids,etc

Take your lawyers advise and don't pay anyone. It's OK to spend some money to get caught up on utilities and buy some school clothes,etc. You don't need to be paying people back outside of the plan. If you had a written agreement at the time you borrowed the money, include them as a creditor in your bk. If you didn't have a written agreement, don't draw one up now.
The trustee has the right to file a lawsuit against this couple to retrieve the payment. Prefernital in this sense means you've placed on set of creditors in a prefered position at the expense of the balance of the class. You just can't do it.
Why are you in a Chapter 13 to begin with. With a reuced income, could you file a chapter 7?