Legal Question in Credit and Debt Law in Alabama

I asked a question, but the answer I recieved did not exactly answer the question I was asking. Maybe I wasn't clear enough when I asked it. Here is my original question:

"My husband has a child support case that is now an arrears-only debt. The principle balance is about $20,000, but with interest the total debt is over $40,000. He wants to apply for a loan of $6,000 - $10,000 to offer her a cash settlement to forgive the debt. His credit is showing this this delinquent debt, but the only other thing there is a $500 medical bill, other than that, he has no credit. So my question is what would be the best route to take to obtain a loan at the lowest possible interest rate? Thank you for your help. "

This is the answer I got:

"Hold on. She (mother) can't negotiate the "debt". The money owed is owed pursuant to a court order, and your husband is going to have to go back to court and get a judge to approve and order any kind of settlement you make. THis is not something that he and she can simply do without the court's order. You've got to get the court to order this. Don't make a side deal with mom. She does not have the authority to forgive or reduce anything (I am assuming this is court ordered child support.)"

I already talked with the clerk of court in the child support division. She's been there for over 30 years, so I trust that she knows what she's talking about. My husband has a hearing coming up, because for almost a year, they have been overcharging my husband, because his son( who is in virginia and has been estranged from his father since he was 3) is 19 now and the age of majority in Virginia is 18. (we are in Alabama where it is 19, so there was a misunderstanding betwwen states) Any way, we can attempt to negotiate a settlement with the ex-wife through the court systems in both states, of this I am positive. It is entirely up to her on whether or not she will take it, but at our income level, she would get less than $100 a month. The courts assure me that if she accepts the settlement, the account will be "paid in full" and the interest and debt will both be forgiven. Since she will no longer recieve current support, we think she may opt to recieve a lump sum of ,say, $5000- $8000, rather than only $100 per month. His son may really need that sum of money to help buy a car or pay towards college .

Sooo...my question is this:

"My husband has a child support case that is now an arrears-only debt. The principle balance is about $20,000, but with interest the total debt is over $40,000. He wants to apply for a loan of $6,000 - $10,000 to offer her a cash settlement to forgive the debt. His credit is showing this this delinquent debt, but the only other thing there is a $500 medical bill, other than that, he has no credit. So my question is what would be the best route to take to obtain a loan at the lowest possible interest rate? Thank you for your help. "

Asked on 3/25/10, 6:16 am

1 Answer from Attorneys

James Coleman Murchison & Howard, LLC
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0 attorneys agreed

You have received legal advice from the clerks office that is not correct. The mother cannot negotiate anything, but only ask the court to accept an agreement of the parties. It is up to the court, not the mother. Child support is due to be terminated on the person who is more than 19 years old. If you would like to discuss this, feel free to have your husband give me a call. I have no idea on the best route to obtain a loan at the lowest possible interest rate.

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3/30/10, 9:46 am

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