Accepting a child support arrearage settlement

[StepmomsAreBest]

What is the name of your state? Ohio

My husbands best friend is $60,000 in arrearage on his child support. His ex offered him a settlement on it. She wants to settle on $20,000 by Oct 31 of this year. He wants to accept the offer, but has no way of coming up with $20,000 by that date. He said the lady he spoke to said he could make a counter offer to pay it within 90 days. That won't work either. He has no way of getting a loan from a bank, friend, relative, etc....to have this paid in that short amount of time. What are his options? The best he can do is pay an extra $30 per week on top of his current support. Will they work with him on it? Or is he screwed if he doesn't come up with the $20,000 pronto? If he doesn't go with the $20,000 settlement, they will continue to pursue him for the $60,000, which could land him in jail.
What are his options?

 

[stealth2]

If someone owed you 60k, and you were willing to forgive 2/3's of it - would you accept an extra $30 a week AS WELL AS giving up $40k? Me either. How did he end up owing that sort of $$?

 

[StepmomsAreBest]

If someone owed you 60k, and you were willing to forgive 2/3's of it - would you accept an extra $30 a week AS WELL AS giving up $40k? Me either. How did he end up owing that sort of $$?

She isn't the one that set the time frame for paying it. She had to choose from options that the people gave her. $20,000 by Oct 31 was one of them. I don't think SHE would have a problem with him just paying an extra $30 per week, as long as he sticks to it, but she has to go by what they say.
How he ended up getting so far behind was by his own stupidity. He simply didn't pay it consistently. Bad move on his part, and he knows that now, and wants to make right with the children and the ex. But they have to go by what is placed before them.

 

[nextwife]

If he has a whole life policy, he could borrow some of it from his cash value. If he has a 401K, he could take a loan against it. If he has a house, he could get an equity loan.

 

[StepmomsAreBest]

If he has a whole life policy, he could borrow some of it from his cash value. If he has a 401K, he could take a loan against it. If he has a house, he could get an equity loan.

He has none of the above.

 

[I AM ALWAYS LIABLE]

My response:

Then, it looks like he'll have to steal the collection plate from church every Sunday before the end of October. Otherwise, he'll end up in front of a judge explaining himself, and wondering why he's behind bars.

The guy is an unmitigated deadbeat!

IAAL

 

[stealth2]

She isn't the one that set the time frame for paying it. She had to choose from options that the people gave her. $20,000 by Oct 31 was one of them. I don't think SHE would have a problem with him just paying an extra $30 per week, as long as he sticks to it, but she has to go by what they say.
How he ended up getting so far behind was by his own stupidity. He simply didn't pay it consistently. Bad move on his part, and he knows that now, and wants to make right with the children and the ex. But they have to go by what is placed before them.

I'd have no faith in that. It wasn't important enough for him to pay it before, I wouldn't count on it being important now. I realize that may not be fair. But noone said life would be.

 

[LdiJ]

What is the name of your state? Ohio

My husbands best friend is $60,000 in arrearage on his child support. His ex offered him a settlement on it. She wants to settle on $20,000 by Oct 31 of this year. He wants to accept the offer, but has no way of coming up with $20,000 by that date. He said the lady he spoke to said he could make a counter offer to pay it within 90 days. That won't work either. He has no way of getting a loan from a bank, friend, relative, etc....to have this paid in that short amount of time. What are his options? The best he can do is pay an extra $30 per week on top of his current support. Will they work with him on it? Or is he screwed if he doesn't come up with the $20,000 pronto? If he doesn't go with the $20,000 settlement, they will continue to pursue him for the $60,000, which could land him in jail.
What are his options?

A settlement with ANY creditor...be it an ex in a child support situation or another creditor in another situation is simply that...a settlement. The creditor agrees to accept the serious loss of part of the debt in exchange for an upfront "cash" payment.

The creditor however is NOT required to offer a settlement. The creditor is free to pursue the debt for as long as the law allows.

Your husband's friend has been offered a very generous deal. If he can take advantage of it then that would be great for him. If he can't, then the debt is going to hang over his head, interest is going to continue to build up...and eventually he is going to be held responsible for the debt one way or another.

I am sorry, but it doesn't matter what he thinks he can or can't afford to pay.
Its not like a bankruptcy situation where he can give up and file bankruptcy.
Unless the ex has assigned the debt to a third party he can't file bankruptcy against it. (the government doesn't count as a third party)

So, the bottom line is that he can expect to pay this debt...and expect to be pursued to the fullest for it. His best bet would be to find some way to raise the 20,000 and except the settlement.

 

[StepmomsAreBest]

Thank you all for the advice. I think he is going to try to get a loan somehow.
And I suggested he keep paying his support regularly! My husband fell behind once for only a few hundred dollars, and they were all over him like flies on sh*t. It is not something they take lightly! I'm trying to figure out how they allowed my husbands friend to get that far behind!

 

[VeronicaGia]

Thank you all for the advice. I think he is going to try to get a loan somehow.
And I suggested he keep paying his support regularly! My husband fell behind once for only a few hundred dollars, and they were all over him like flies on sh*t. It is not something they take lightly! I'm trying to figure out how they allowed my husbands friend to get that far behind!

If he can come up with the money, tell him to make sure it is court ordered, and make sure the payments are sent through the child support agency for proper credit. Do not pay her directly under any circumstances and make sure the payments are on time in order for them to be received by Oct. 31.

If it isn't a court order, he will still end up paying the $60k, plus interest.