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Prioritizing Paying Debts During COVID-19

COVID-19 has upended many people’s lives, especially with work  – as many companies are still adjusting to the new realities brought by COVID-19. Many people have been furloughed or laid-off.

Now, people who were struggling with making ends meet before the pandemic, are struggling with how to handle paying their bills. Financial experts from the National Consumer Law Center recommend triaging debts. The first step is to prioritize debts that will harm you and your family if you do not pay them. Namely, high priority debts are rent/mortgage, utilities, child support, and auto loan. Low priority debts are credit card, medical debt, student loans, and debts owed to family or friends.

Not paying child support can have drastic consequences for the person ordered to pay it. For example, nonpayment of child support can lead to a warrant for arrest, staggering interest on owed child support, suspending licenses (driver’s license, occupational license, recreational license), and many more enforcement mechanisms.

As financial experts suggest, paying child support should be a high priority debt.

If you have questions related to a possible Dissolution of Marriage, Legal Separation, child support issues, or a post-decree matter, please do not hesitate to contact our office (952) 224-9410