Supportkids and discharge debt

[Kelly Burr]

What is the name of your state (only U.S. law)? NV. Can back child support be discharged in bankruptcy if it was turned over to Supportkids by the CP, and not the court? The court says we should have nothing to do with Supportkids, or the legal office they have turned the case over to, but we keep receiving threatining letters from them. This is in regards to the prior posts I have made in this forum. Just need clarification before we make any more moves. Thanx.....

 

[Antigone*]

What is the name of your state (only U.S. law)? NV. Can back child support be discharged in bankruptcy if it was turned over to Supportkids by the CP, and not the court? The court says we should have nothing to do with Supportkids, or the legal office they have turned the case over to, but we keep receiving threatining letters from them. This is in regards to the prior posts I have made in this forum. Just need clarification before we make any more moves. Thanx.....

If child support is assigned to a company like Support Kids, then it is a private debt and can be discharged in bankruptcy.

 

[Kelly Burr]

If there is a standing court order to withhold monies from NCP's SSDI, can it be discharged in bankruptcy court if the CP hires Supportkids to collect arraerages and interest? When would back support arraerages become a private debt? When CP contacted Supportkids? Any info is appreciated.

 

[Just Blue]

If there is a standing court order to withhold monies from NCP's SSDI, can it be discharged in bankruptcy court if the CP hires Supportkids to collect arraerages and interest? When would back support arraerages become a private debt? When CP contacted Supportkids? Any info is appreciated.

As soon as you gave this debt to SK to collect on it became dischargeable.

 

[Proserpina]

As soon as you gave this debt to SK to collect on it became dischargeable.

Absolutely. The very second the debt is bought or transferred to someone like SK a very significant level of protection is lost - though SK and the like can be a useful tool for some parents I think all too often the glimmer of hope in "maybe get some money very quickly....although if NCP files ch 7 I'm screwed...." overrides the "then again, I do have about 20 years in which to collect this...and s/he can't work under the table forever..", you know?

 

[Kelly Burr]

NCP just got off the phone with bankruptcy lawyer, and he was told that we CANNOT discharge back child support thru bankruptcy. CP gave the case to SK in 2005. So, you can see how this can be confusing. I know that I have asked for clarification before, but keep getting different info from different people. So just to be clear.....CP gave case to SK in 2005, the court is garnishing NCP SSDI, which is his only income, at about 65% to repay. arrears. Can NCP discharge in bankruptcy in this case? We just need to know how to proceed....We have all the paperwork sent to us by SK, and also the letter from the attorney's office it has been assigned to. Any info is very much appreciated.

 

[Proserpina]

NCP just got off the phone with bankruptcy lawyer, and he was told that we CANNOT discharge back child support thru bankruptcy. CP gave the case to SK in 2005. So, you can see how this can be confusing. I know that I have asked for clarification before, but keep getting different info from different people. So just to be clear.....CP gave case to SK in 2005, the court is garnishing NCP SSDI, which is his only income, at about 65% to repay. arrears. Can NCP discharge in bankruptcy in this case? We just need to know how to proceed....We have all the paperwork sent to us by SK, and also the letter from the attorney's office it has been assigned to. Any info is very much appreciated.

What exactly is the garnishment? Is it being garnished by the court, or by the third party?

 

[Kelly Burr]

Garnished by the court. They didn't pursue the case as fast as the CP wanted them to, so she contacted SK in 2005. Just last Monday, we received the garnishment of NCP"s SSDI that he has been on since 2004. This is only for arrearages and interest, since the children are in their late 30's now. NCP was paying thru payroll deduction until his accident in 2003, by which he became permanently disabled. Any info is appreciated, as I am at my wit's end. Thank you.

 

[Proserpina]

Garnished by the court. They didn't pursue the case as fast as the CP wanted them to, so she contacted SK in 2005. Just last Monday, we received the garnishment of NCP"s SSDI that he has been on since 2004. This is only for arrearages and interest, since the children are in their late 30's now. NCP was paying thru payroll deduction until his accident in 2003, by which he became permanently disabled. Any info is appreciated, as I am at my wit's end. Thank you.

I think this is perhaps the confusion - was the debt split? Are there two separate amounts, one owed to the court and the other to SK?

They can't both collect the same debt.

 

[meanyjack]

Kelly Burr -- please stop being so vague with your answers. Are you the CP or the NCP?

WHAT EXACTLY is being collected and garnished by the court, if any, via a CURRRENT order.

What is SupportKids collecting?

Again, EXACT answers, please.

 

[Kelly Burr]

I am sorry, I am trying to do 100 things at a time. I am married to the NCP, who is disabled and unable to do the research needed to find out the answers to his questions. The court is garnishing the SSDI for arrears and interest only. Up until his accident in 2003, wages were garnished and payments were being made. After the accident, he was no longer able to pay.2004 order says payments shall be $230.00 until he is able to return to work. He made some payments, but was in and out of the hospital, rehab etc. during that time. In 2005, the CP contacted or was contacted by Supportkids about getting the money due to her. Since then, we have been receiving letters from SK and just recently got a couple from the legal firm it was given to. In 2007, NCP and CP were back in court. A motion to modify was entered. It was the same as 2004. Situation and/or circumstances had not changed. Nor have they now. 2009, we resubmitted a modification request. It was returned to us due to no change in circumstance. We continue to receive threatning letters from SK. We have been told that once it has been turned over to outside agency, by the CP, not the court, that it was dischargeable in bankruptcy. We have also been told that it cannot. There is an order right now for the court to collect from his SSDI. That takes effect on Oct. 3. I am looking forward to hearing from someone to make this clear for me. I am just trying to do the best I can with the info. I have been given. Any help is very much appreciated. Thanks in advance.

 

[meanyjack]

I am sorry, I am trying to do 100 things at a time. I am married to the NCP, who is disabled and unable to do the research needed to find out the answers to his questions. The court is garnishing the SSDI for arrears and interest only. Up until his accident in 2003, wages were garnished and payments were being made. After the accident, he was no longer able to pay.2004 order says payments shall be $230.00 until he is able to return to work. He made some payments, but was in and out of the hospital, rehab etc. during that time. In 2005, the CP contacted or was contacted by Supportkids about getting the money due to her. Since then, we have been receiving letters from SK and just recently got a couple from the legal firm it was given to. In 2007, NCP and CP were back in court. A motion to modify was entered. It was the same as 2004. Situation and/or circumstances had not changed. Nor have they now. 2009, we resubmitted a modification request. It was returned to us due to no change in circumstance. We continue to receive threatning letters from SK. We have been told that once it has been turned over to outside agency, by the CP, not the court, that it was dischargeable in bankruptcy. We have also been told that it cannot. There is an order right now for the court to collect from his SSDI. That takes effect on Oct. 3. I am looking forward to hearing from someone to make this clear for me. I am just trying to do the best I can with the info. I have been given. Any help is very much appreciated. Thanks in advance.

If I am reading this right, the court still has jurisdiction of this order. NOT the collection agency.

Your hubby needs to write a letter to SK asking them for verification of the debt. In this letter, give them a deadline to verify within 14 business days of receipt (because if you don't, you might never hear back from them, which is typical for collection agencies when they are asked to verify) & if you don't hear from them within this period of time, you will presume this debt does not exist and/or is valid. Send it certified w/return receipt. Then sit back and wait.

It appears that the CP is trying to double-collect. Regardless, the CP will be on the hook for what SupportKids charges, NOT THE NCP! The CP signed the contract with the collection agency.

The debt that SupportKids is trying to collect IS dischargeable in BK court. The court-ordered support is not. But, it SOUNDS LIKE SK has no jurisdiction to collect on this since the court still has jurisdiction on this.

Again, your hubby needs to write a letter asking to verify this debt and give them 14 days to do so. That is the proper procedure for collection.

BTW...You might want to post this under "debt collections" on FreeAdvice, as there are Senior Members who are specialized in collections that could most likely better explain what to do.