Child support with bankruptcy

[Astrolink]

What is the name of your state (only U.S. law)? TN

I'm asking this one for a friend. Husband and wife married 20 years, getting divorced (4 kids, 3,5,11,13). Mom is SAHP with no skills or education for employment. Dad nets $4400/month. Chapter 13 bankruptcy filed last year; payment of $2300/month. If I understand it correctly, BK payments are not deductible for CS calculations. Four kids = 46% of net in TN, so CS would be $2024. Total then of BK payments and CS is $4324.

Is this the typical outcome, or is the BK revisited, CS reduced, or some combination? I suspect they could file independent chapter 7's once divorced, but what does the court order for now?

 

[I'mTheFather]

What is the name of your state (only U.S. law)? TN

I'm asking this one for a friend. Husband and wife married 20 years, getting divorced (4 kids, 3,5,11,13). Mom is SAHP with no skills or education for employment. Dad nets $4400/month. Chapter 13 bankruptcy filed last year; payment of $2300/month. If I understand it correctly, BK payments are not deductible for CS calculations. Four kids = 46% of net in TN, so CS would be $2024. Total then of BK payments and CS is $4324.

Is this the typical outcome, or is the BK revisited, CS reduced, or some combination? I suspect they could file independent chapter 7's once divorced, but what does the court order for now?

Mom can still be imputed an income for child support purposes, and the bankruptcy payments should be worked out in the division of property/debts.

If your friend is 'getting' divorced, what does his lawyer say about it?

 

[nextwife]

If both spouses, together, have jointly run up this debt to their creditors, why does one spouse feel they have ZERO OBLIGATION to help repay their creditors? Perhaps choosing to be a SAHP should not be done at a third party's expense? If they were running up too much debt to pay back, perhaps they needed to have a second income or spend less?

So, the second spouse feels no obligation going to help pay BACK their Ch 13 creditors AT ALL?

 

[Astrolink]

He (they) haven't seen attorneys yet, but since he is seeing someone else, I don't think there's any stopping a divorce. He was also asking about alimony because of their income disparity. I suspect either/both will see attorneys soon, but i thought I'd give him a heads up of what to roughly expect.

 

[stealth2]

Well... maybe HE needs to end one relationship before starting another, and SHE needs to get a job. YOU, on the other hand, need to butt out.

 

[Astrolink]

I have nothing invested in their relationship, and really don't care what the outcome is. I'm only looking for a legal perspective to pass on....to both of them if they want it.

 

[stealth2]

Then the best thing you can do is suggest that they each consult with an attorney.

 

[I'mTheFather]

Then the best thing you can do is suggest that they each consult with an attorney.

Amen, I say!!

 

[stealth2]

Amen, I say!!

Thanks, Dad!

 

[chereeda]

What is the name of your state (only U.S. law)? TN

Four kids = 46% of net in TN, so CS would be $2024. Total then of BK payments and CS is $4324.

TN no longer uses the Percent of Obligor system which you are referencing. They have used the Income Shares system for a few years now. The Income Shares takes into account the income (or potential income) of both parents and the amount of time the children spend in each home. There is a calculator on the state's child support website that can be used to find the Basic Child Support Obligation (amount of child support) that would likely be ordered. This amount would be before any extraordinary expenses related to education would be added.

donna

 

[Astrolink]

Then the best thing you can do is suggest that they each consult with an attorney.

I already have, since I don't have any answer for them that I would have confidence of being accurate.

Between the lines, if I understand you correctly, what you are saying there are too many variables to really give an accurate assessment without seeing an attorney in their local jurisdiction. If that is so, that's what I'll pass on.

 

[stealth2]

I already have, since I don't have any answer for them that I would have confidence of being accurate.

Between the lines, if I understand you correctly, what you are saying there are too many variables to really give an accurate assessment without seeing an attorney in their local jurisdiction. If that is so, that's what I'll pass on.

Pretty much. Because I can guarantee that you do not know even half of what is relevant.

 

[LilTwyt]

Tennessee Is Now An Income Shares State

The flat rate charge is no longer in use. TN has used an income shares model since (about) 2004.

Since Mom has been a SAHM with four children, chances are she'll only be imputed at minimum wage until she obtains actual employment. However, Dad will then have to pay a portion (based on income percentages) of child care; with three kids still daycare age, it could get quite expensive.

On the issue of alimony, she could possibly be awarded rehabilitative alimony to allow her time to go to school or find a job - depends on the personal opinion of the judge about Moms and/or cheating husbands. If awarded, it could be for as little as six months or as long as 10 years - there's really no firm chart they use.

As others have said, best thing your friends can do is each see an attorney.

 

[neopandora]

As other have already stated, TN has long been an income shares state. The calculator is located here: Tennessee Department of Human Services

Put in Dad's gross monthly income
Mom will more than likely be imputed minimum wage so put in 1256.00 for Mom.

You will have to list all the children and their birthdays and the amount of time they spend with each parent by days. If the non-custodial parent is going to have basically standard every other weekend and half the holidays, try 275 custodial parent and 90 for the ARP to get a rough idea.

NOTE: if the parenting time is going to be vastly different: say ARP is going to have less than 90 days or more than 120 days a year, the child support amount will change.

You can also put in the amounts for health insurance for the children and daycare expenses. Just put the amount in the column for the parent paying said amount and it will do the rest.

Bankruptcy won't affect the child support figures at all.

Alimony - they really need to speak to an attorney. You have a long term marriage here but there are so many other factors age, health, education, fault, children and bankruptcy that it's probably going to take an attorney to look at the specific assets/liabilities, and all the factors to determine.