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audster

Member
Ummmm...no actually it does. CSE just doesn't want anyone to know about it. Fro one thing there is no more "overworked county agencies" anymore. Federal law demanded that all States go to a statewide CS disbursment unit a few years ago. The handling of CS was subsequently taken out of the hands of the local Circuit Clerks and given directly to the CSE branch of Public Aid. Probably a bad move, i agree, but the States were forced to comply just the same. According to Federal Bankruptcy Guidelines, I believe, once a court ordered debt, including Spousal and Family support is turned over to a private, 3rd party collection service, it can be discharged in Bankruptcy. Hey, one of you lawyers on here, is this right? I could swear I saw this covered and confirmed in here on another thread.
 


stevek3

Member
audster said:
Ummmm...no actually it does. CSE just doesn't want anyone to know about it. Fro one thing there is no more "overworked county agencies" anymore. Federal law demanded that all States go to a statewide CS disbursment unit a few years ago. The handling of CS was subsequently taken out of the hands of the local Circuit Clerks and given directly to the CSE branch of Public Aid. Probably a bad move, i agree, but the States were forced to comply just the same. According to Federal Bankruptcy Guidelines, I believe, once a court ordered debt, including Spousal and Family support is turned over to a private, 3rd party collection service, it can be discharged in Bankruptcy. Hey, one of you lawyers on here, is this right? I could swear I saw this covered and confirmed in here on another thread.

I believe you were reading your imaginary facts as part of an imaginary thread that recently proclaimed Ralph Nader has been voted the new President of Mexico. RALPH RULZ!!!

The private collection agency would need to give the party some form of consideration so as to sufficiently recharacterize the nature of the debt. Furthermore, even then, it would depend upon the judicial district where the bankruptcy is filed. Accordingly, the countless pieces of slime looking to evade their payment of child support shouldn't start dancing naked in the streets just yet.
 

audster

Member
Check out the federal BK statutes......arrears from family/spousal support cannot be discharged in a BK unless they are turned over to a 3rd party for collection...

If the state is collecting arreages for CP and turns it over to a private interest company the charges a fee or a portion of the collected sums for thier service they would be a third party....this is why most CS/CP advocates advise against using Collection Agencies to collect CS arrears! Granted, this does nothing to stop current support, but in this situation, it seems you can discharge arrearages in a BK
 
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