In the first image My character is in front of the obstacle, but when I move my character to the left a bit it goes behind the object, I want my character to be in front of the object all of the time. Is there a aspect that I am missing, thanks in advance.
I’m not sure how this is all setup, it’s weird that it should go behind something else. The problem, I’m guessing, is the sorting of your elements. Maybe it is a z axis thing, not sure with just the two pictures.
Alternatively, you can use Disable Depth Test in the material of the object in question (if it’s a sprite image, then this won’t help) - one caveat is it must be using the Blend Mode: Translucent.
See picture (shading model irrelevant)
So these are props that use sprites, I scaled up a big soda prop to show you more whats happening, the weird thing is that the rotation is all normal for everything, even though it looks like it is twisted a bit due to the phasing, but I am not sure what is going on, because it doesn’t do this for my character itself, but for these certain props it will, I almost feel like they all have a problem in the physics but the rotation is turned off on the physics so it is only position that can be changed, thanks for your help 
I have never worked with the paper2D tools of unreal, but the problems sounds common if you search with key terms like “2D”, “sprite”, “sorting”, and “translucency.”
Here are some solutions I found that I hope help you.
Engine > Rendering > Translucency
https://answers.unrealengine.com/questions/218376/paper2d-translucency-sort-priority.html?sort=oldest
On the actor/sprite > Rendering > Translucency Sort Priority
Do make sure your materials are setup appropriately and please read through the entire posts.
If you are using orthographic camera (looks like it) and creating your levels by just placing sprites/actors with sprites, you can also simply move the assets along the Y axis and sort them manually.
In my current project, I keep my character at 0, everything in front starting at Y>10, and everything behind the character at Y < -10.
Since it’s ortho, it won’t matter how far in front or back you place the sprites.
Just make sure to set the collision thickness to compensate for how far you move a sprite if you want your character to be blocked:
(Under Sprite Options > Collision)
For special cases, like something that extends both into the foreground and background (say you would want your chicken leg to render on top of your shelf, but have the front-most vertical bars occlude the character), you could create an actor with two sprites.
To illustrate what I mean:
https://forums.unrealengine.com/core/image/gif;base64
Hope this makes sense…
Thank you both so much, Conrad your suggestion solved the layering bug, and micky yours helped me organize and solve other problems that I had, I never knew you could change the thickness of the collision or change the transparency levels, thank you both so much.