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4 Ways To Deal With Spousal Or Child Support When You’re In Debt

The numbers never add up after a divorce. Existing becomes more expensive even though you are living alone and what’s worse is that while you’re divorced from your spouse, you’re still married to the lender agencies you owe. Often, you are over burdened with debt after a divorce – expensive bills by the lawyer are pending and you get spousal or child support to deal with.

It’s worse if you are in a position where your debt is piling up and neither are you able to pay money back to the lenders nor are you able to fulfill child support payments. While you will still be able to see your child if you miss your child support debt, you open yourself to penalties, negative impact on your credit and seizure of your bank accounts.

Here are 4 ways you can do something about it.

1. Initiate out-of-court Settlement

Get in touch with your spouse and explain your situation. The point you want to make is why you can’t manage the support payment and hence, it should be reduced. However, if you aren’t on speaking terms with the spouse, have your lawyer contact your spouse’s legal representative.

Your lawyer will do a better job of representing your problems. If your spouse is not willing to agree, or even willing to listen to your debt problems, you have to take it to court.

2. Bring it to Court

You can petition the court to reduce the support payment citing ‘undue hardship’. Undue hardship refers to a situation where the support payment is having serious negative effects on the financial situation of the petitioner. The Judge might specifically look at two things when deciding if you qualify for ‘undue hardship’.

– The Difficult Circumstances

This involves a complete review of your financial situation. It will look at debts from supporting family before and after the separation, any obligations to support another person, etc.

– A lower standard of living than the house getting support payment

In such a case, you will have to prove that your standard of living is poorer than the person who is receiving the payment support. If either side is living with a new partner, the partner too will be taken into account.

The court is the one who decides if you qualify for ‘undue hardship’ and if you do, then how much should the child support reduction be.

3. Consolidate your Finances

At times, it may feel like debt and support payment is draining you financially, but all you need to do is manage your debt better. Here are some ways to get started:

– Budget: Budgeting greatly helps in managing your expenses and income. It’s the best way to save more.

– Consolidate your Debts: If there are too many debts to handle, it would be a good idea to consolidate them together.

– Make the Payments: The best way to stop debt and support payment from piling up is to ensure that you make the payments without fail. Budgeting is a fantastic tool to help you achieve that.

4. Get in Touch with a Debt Consultant

A debt consultant knows the ins and outs of the debt financial world. He will offer you amazing insights to help get your debt in check.

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