View Full Version : Is there no protection for the Dad against having them take all his money?
Sundlie
Aug 14, 2013, 06:41 PM
My Son is a painting contractor and has to have checking acct. That's how he gets a deposit for the work he does,which goes to supplies.And most people write checks for. When child support comes and cleans out his checking,savings and what ever they can find.How is he going to meet his obligation to his customers
cdad
Aug 14, 2013, 06:44 PM
He needs to change the way he does business. If he is putting the checks into a personal account then they have the right to take it if he is in arrears. He needs to talk to an accountant or financial advisor and figure out his best position to meet hs needs which include child support. That way his customers are protected.
Sundlie
Aug 14, 2013, 06:48 PM
He needs to change the way he does business. If he is putting the checks into a personal account then they have the right to take it if he is in arrears. He needs to talk to an accountant or financial advisor and figure out his best position to meet hs needs which include child support. That way his customers are protected.
But they did the same thing to his business acct.
Sundlie
Aug 14, 2013, 06:53 PM
But they did the same thing to his business acct.He deposited 900.00 on the 13th and they took it on the14th. He had to wait to cash the check because the bank was holing it.
AK lawyer
Aug 14, 2013, 07:13 PM
Form a corporation or LLC. Obtain a taxpayer ID number for this company, instead of his Social Security number. Establish a trust account only for deposits by customers. And he should not have signing authority with respect to this account; instead appoint one or more company officers other than himself to sign the checks.
Checks drawn from this trust account should only be used to pay costs for each job, or profit payments to the company (which would be into a separate account) when the jobs are complete. General company overhead, employee salaries, etc. and particularly profit draws to your son should never come from this account. This procedure should insulate these funds from child support levies.
Fr_Chuck
Aug 15, 2013, 08:23 AM
First of course, he does have a obligation to his child, it appears he has neglected to pay his proper support,
Sorry if it is hard to feel sorry for someone not paying their support. This is legal and how it works, if he is far behind, and they have issued a garnishment for his checking accounts, this is what happens.
If he business was incorporated, then the money going into it, is not "his" money but the business money.
He will then write his self a paycheck, the corporation will have to honor any garnishment of wages, so a percent of every pay check he writes his selt will have to go to support.
He will have to keep this account strictly business, and never use it for person
ScottGem
Aug 15, 2013, 10:13 AM
How is he going to meet his obligation to his customers
Umm, what about meeting his obligation to his children? If he was making his payments on time, then he wouldn't be in arrears and his bank account wouldn't be attached.
You refer to his "business account". But if his business is not incorporated or an LLC, then its only a business account because he uses it that way and its not protected from his personal debts.
AK lawyer
Aug 15, 2013, 03:02 PM
...
You refer to his "business account". But if his business is not incorporated or an LLC, then its only a business account because he uses it that way and its not protected from his personal debts.
Even if the business is a corporation or LLC, if it belongs solely to him, it is not (strictly speaking) protected from personal debts. A creditor can, in theory, levy upon assets belonging to the debtor such as the business itself. I suggest other safeguards such as a different taxpayer ID #, and other account signers, to doubly protect the customers from overzealous creditors.
That's why I suggest setting up a trust account, in which are kept only funds belonging to the customers, not the business itself.
Attorneys are required to do this. Those who hold funds belonging to others (tenant deposits held by landlords, for example, or funds advanced for the purchase of materials as in this case) should be required to do the same.