(6m), if the party no longer has a current obligation to pay child support, interest at the rate of 1% per month shall accrue on the total amount of child support in arrears, if any. 1274, for July of the current year. Subject to sub. (b) Interest on a judgment under this subsection is simple interest, unless otherwise provided by contract. Additionally, if the non-custodial parent has or wants a U.S. passport, but owes more than $2,500 in support arrears, a passport may be denied, revoked or restricted until attempts are made to pay the owed support. When a lien is placed on a bank account, the account is frozen and the funds are levied and transferred to the custodial parent. According to the Office of Child Support Enforcement, nearly 6 million noncustodial parents are behind on their child support payments, owing more than $114 billion in past-due support. If there is no agreement or provision of law for a different rate, the interest on money shall be at the rate of eight percent per annum, compounded annually. Except as otherwise provided in this section, interest on all judgments entered in the courts of this state before Jan. 1, 2006, must remain at the rate per annum which was legally prescribed at the time the judgments were entered, and such interest may not be compounded in any manner or form. 6% per annum, charged the end of the month the support was due and not paid. AL Statute of Limitations on Back Child Support Payments (Arrears) In Alabama, child support enforcement must take place within 20 years from date of judgment for purpose of obtaining an order of support. It offers a tiny hope to NCPs (non-custodial parents) who feel buried by mounting interest on their delinquent child support. The Department of Social Services or any support obligee may collect interest on the unpaid principal balance of a support debt or judgment for support at the Category D rate of interest as established in § 54-3-16. The interest is generally determined in the same way as other civil judgments. (b) Any judgment by operation of law which is not paid within 32 calendar days from the date the judgment by operation of law arises is subject to an automatic late payment penalty in an amount equal to 10% of the amount of the judgment by operation of law. (c) Interest accruing from the date of the entry of a judgment shall also accrue on interest that accrued before the date of entry of a judgment. Interest on periodic payments for child, spousal, or medical support shall not accrue until thirty days after the payment becomes due and owing and shall accrue at a rate of ten percent per annum thereafter. Bernadette A. Safrath is an attorney who has been writing professionally since 2008. The court shall have discretion in applying or waiving past due interest. The court has the discretion as to whether or not to grant the interest judgment. The interest rate established by the Chief Financial Officer shall take effect on the first day of each following calendar quarter. Actually, FEDERAL LAW [42 US Code 654(21)(a)] limits the amount of interest that states may charge on child support arrears to 6-percent simple interest per year. Since Jan. 1, 2012: 6% simple interest per annum. Judgments obtained on or after Jan. 1, 1995, shall use the previous statutory rate for time periods before Jan. 1, 1995, for which interest is due and shall apply the rate set by the Chief Financial Officer for time periods after Jan. 1, 1995, for which interest is due. Lastly, CSE can file a lien on any of the non-custodial parent's assets, including bank accounts, real estate and personal property. Interest on child support obligations may be collected by any means available under State law for the collection of child support judgments. (c) In order to recover penalties assessed under subsection (b) of this section, the obligee shall file with the clerk of court a sworn affidavit setting forth the payment history resulting in assessment of any penalty and a computation of all penalties claimed to be due and owing. (2) An action founded upon an oral or written contract in which the parties have agreed to a rate of interest other than that specified in this section. (b) Upon the settlement of book or store accounts from the day on which the balance is ascertained. *PLEASE NOTE: The National Conference of State Legislatures is an organization serving state legislators and their staff. Tel: 202-624-5400 | Fax: 202-737-1069, Research, Editorial, Legal and Committee Staff, E-Learning | Staff Professional Development, Communications, Financial Services and Interstate Commerce, Copyright 2021 by National Conference of State Legislatures. In making such finding, the court shall set the rate at which interest shall accrue after consideration of any factors the court deems relevant; provided, that the interest rate shall be no more than 6% per year. When a court renders a money judgment for child support, pursuant to a motion for a lump sum judgment filed by an obligee, interest shall accrue on that arrearage unless the court finds that it would be inequitable to assess interest. The rate of interest imposed under AS 25.27.020(a)(2)(B) shall be six percent a year or a lesser rate that is the maximum rate of interest permitted to be imposed under federal law. Legal Math has many features and is able to take into account irregular payments and changing current child support obligations. Until Sept. 1, 2011: 12% interest on the unpaid principle balance at the end of each month. Child Support Terms A lien provides notice of the child support debt and requires that any arrears be paid from the proceeds of an asset's sale before the non-custodial parent is permitted to make a profit. (A) In cases other than those provided for in sections 1343.01 and 1343.02 of the Revised Code, when money becomes due and payable upon any bond, bill, note, or other instrument of writing, upon any book account, upon any settlement between parties, upon all verbal contracts entered into, and upon all judgments, decrees, and orders of any judicial tribunal for the payment of money arising out of tortious conduct or a contract or other transaction, the creditor is entitled to interest at the rate per annum determined pursuant to section 5703.47 of the Revised Code, unless a written contract provides a different rate of interest in relation to the money that becomes due and payable, in which case the creditor is entitled to interest at the rate provided in that contract. Child Support Enforcement Division, Interest and penalties on past-due child support. You consent to the use of cookies if you use this website. (C) Within 10 days after the interest rate per annum is determined under this section, the tax commissioner shall notify the auditor of each county of that rate of interest. (2) On and after Jan. 1, 2002, the cumulative total of arrearages and interest accumulated on those arrearages described by Subdivision (1) is subject to Subsection (a). Stat. Federal income tax refund intercepts and any payments in excess of the current monthly child support obligation shall be applied to the unpaid child support balance. When a non-custodial parent does not pay as ordered, the owed support becomes past due, or in arrears. 3a. If the obligor disputes the payment history or penalty computation as stated in the obligee's sworn affidavit, the obligor shall file with the clerk of court a written request for a hearing within 10 days after seizure of his property under execution. The amount of the surcharge shall not compound. Beginning Jan. 1, 2006, the interest is payable at a rate equal to the prime rate published in the Wall Street Journal on the first Monday in December of each year plus three percentage points rounded up to the next one-half percentage point and may not be compounded in any manner or form. In some states, you must pay a hefty interest rate for back child support debt. Payoff your back child support debt with help from the U S Department of Debt Loan Payoff today. The accrued interest shall not be included in the unpaid child support balance when calculating interest at the end of the month. It's impossible to answer child support questions about arrears and interest on those arrears without looking at the payment history. (2) Except as provided in this subsection, the rate of interest on judgments for the payment of money is nine percent per annum. 1, 1995, through June 30, 2008: 10% per annum simple interest. It is a complicated process to calculate child support interest when there is one than one payment in arrears. (2) All judgments for unpaid child support that have accrued under a superior court order or an order entered under the administrative procedure act shall bear interest at the rate of 12%. (a) Example 1: Noncustodial parent (NCP) is ordered to pay $150 per month in current child support effective February 1. You are not reaching interest … (a) Interest accrues on the portion of delinquent child support that is greater than the amount of the monthly periodic support obligation at the rate of six percent simple interest per year from the date the support is delinquent until the date the support is paid or the arrearages are confirmed and reduced to money judgment. Until Sept. 1, 2011: 12% interest on the unpaid principle balance at the end of each month. 1. a. Up to counties whether they want to charge interest at above amounts. 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