Billy D. Price, P.C.
Sat, Feb 23, 2008

Child Support Arrears Cannot Be Paid With Interest In Chapter 13

Posted By Billy D. Price, Dallas Bankruptcy Lawyer in Cases of Interest, Chapter 13, Child Support Issues
Print This Post Print This Post |
x

Send to a Friend:





Send to a friend:

On November 15, 2007, in the case of In Re Hernandes, 2007 Bankr. LEXIS 4222, Judge Rhoades heard the arguments of the Texas Attorney General and the Chapter 13 Trustee on whether or not interest could be paid on child support arrearage claims in the chapter 13 plan.

Judge Rhoades ruled that interest could not be paid because the interest portion of the arrearage claim was unmatured and therefore could not be paid.

What this means: At least in the Eastern District of Texas, (Collin County, Texas and Denton County, Texas), interest cannot be paid on child support arrearage claims being paid through the plan. This means that if you have this type of claim, you are still going to have to pay the interest that accrues after your case is filed.

One Comment

  1. Chuck Newton - February 26, 2008 6:23 pm

    Will the accruing interest required by state law survive the discharge of a Chapter 13 bankruptcy?



Trackback URL for this post:

http://www.billydpricepc.com/child-support-arrears-cannot-be-paid-with-interest-in-chapter-13/trackback/