Should I pay off debt to reduce my monthly paternity judgment in CA?

General Forum
1

I made $4500 a month in 2024, have $90k in the bank, and $27k in credit card debt. If I get hit with a paternity suit in CA, do you think paying off the debt and reducing my cash will lower my monthly judgment amount? How much does the cash in the bank affect the calculation? Also, I’ve been told my judgment could be around $850-$1250 with my income. Any thoughts?

2

Yeah, I’d say paying off the debt is a good move. It could lower your income a bit for the calculation. The judge might also look at your resources like cash, so reducing that could help lower the judgment. It’s a smart strategy in CA.

3

@Baylee
Interesting. So the judge looks at cash as part of the decision? I thought it was just income.

4

SteveAffie said:
@Baylee
Interesting. So the judge looks at cash as part of the decision? I thought it was just income.

Yep, exactly! They can look at all your resources, including cash in the bank, to see if it can generate interest or passive income. So reducing it could show you’re not sitting on extra funds.

5

I agree with XYZ. Also, boosting your 401k contributions could lower your net income, which could help too.

6

Dylan said:
I agree with XYZ. Also, boosting your 401k contributions could lower your net income, which could help too.

I didn’t think about 401k contributions. Good point. I’ll check if I can up my contributions. Thanks!

7

I think your judgment estimate is about right. With $4500 a month, the support amount could range between $850 and $1250. It all depends on your specific case, but that seems reasonable for CA.

8

Ariel said:
I think your judgment estimate is about right. With $4500 a month, the support amount could range between $850 and $1250. It all depends on your specific case, but that seems reasonable for CA.

Thanks for confirming. That’s a relief to know it could be on the lower end.

9

Regarding your living situation with your parents, the judge won’t use that against you. Taking care of your elderly parents is a good thing, and it won’t hurt your case.

10

Carter said:
Regarding your living situation with your parents, the judge won’t use that against you. Taking care of your elderly parents is a good thing, and it won’t hurt your case.

Phew, that’s good to know. I was worried they’d factor that in somehow.

11

For a lump sum settlement, I think $100k is a good place to start. That’s typically what people with your income range offer. It might go higher depending on the case specifics, but $100k should catch the attorney’s interest.

12

@Violet
Thanks for the input! I’m thinking of starting there and seeing if we can work something out.