Child Support Loans
A common mistake made by many parents when they are fighting for child support is that they will borrow money against their home equity to satisfy their obligation to pay child support. While this may seem like a good idea, there are several pitfalls that can be found in this plan. First of all, child support laws vary greatly from state to state. Each state has its own guidelines and procedures when it comes to enforcing child support payments. When parents are stuck trying to work out child support payment obligations using what they have borrowed against their home equity, they can be at a real disadvantage. Another reason that child support loans can be so detrimental to you as the non-custodial parent is that most lenders will only make these types of loans with collateral that belongs to the non-custodial parent. They will not make these types of loans with no collateral. This means that if you have been collecting payments on your child support obligations, you have the right to get these funds and use them for whatever purposes that you see fit. If the other parent refuses to share his or her assets, the non-custodial parent will be left to figure out how to pay these child support obligations.
Court Ordered Child Support Loans
Most lenders who make these types of loans require that there be a court order for an agreement to go into effect. This means that if a lender gets caught making child support loans without court approval, they can be prosecuted. The penalties associated with child support collection can be very harsh and very serious. Parents who try to self-medicate by borrowing against their homes can end up putting themselves and their children in real danger. Lenders also tend to offer repayment plans that are more adjustable than the fixed payments that they offer with traditional child support enforcement systems. They do this in an effort to make child support easier to deal with for all involved. The goal is not to make child support payments disappear over the course of time. It is to ensure that the obligation remains with the payers and that they are able to make the payments.
When it comes to applying for child support loans, it is important that you fill out and submit everything accurately and completely. Filling out the application and submitting it without any errors can result in you getting denied. If there are any inaccuracies in the application, they must be brought to the attention of the court where the hearing is scheduled. In most cases, the non-custodial parent must provide documentation such as pay stubs, bank statements, etc. supporting his or her income and child support obligations. Parents who are trying to make child support payments should never be in a situation where they must borrow money against their home. This can put a strain on you financially and emotionally, and it can also delay your child support recovery. If you are having trouble meeting your child support obligations, consider talking to a child support lawyer today.