Strategies for Preventing the
Accumulation of Child Support Arrears
and Managing Existing Arrears:
An Update
Paula Roberts
Center for Law and Social Policy
and
Elaine Sorensen
The Urban Institute
October 6, 2005

Colorado Child Support Commission
Proposed Changes to Guidelines*
n Minimum order of $ 50 for obligors making less than $ 850 per
month in adjusted gross income
n Low-income adjustment for obligors earning between $ 850 and
$ 1,850 per month in adjusted gross income
*Based on a presentation by Larry Desbien at ERICSA March
2004

Child Support Commission
Recommended a New Low Income
Adjustment
n For Obligors between $ 850 and $ 1,850 per month in adjusted
gross income the Low Income Adjustment Sets minimum
order of:
$ 75 for one child
$ 150 for two children
$ 225 for three children
$ 275 for four children
$ 325 for five children
$ 350 for six children

% of Poverty After Taxes and Payment/Receipt of Child Support Based on
New 2003 Guideline Schedule Enacted by Legislature
(Each Parent’s income based on full-time, minimum wage earnings)
0%
20%
40%
60%
80%
100%
120%
1 Child 2 Children 3 Children 4 children
Custodial
Non-custodial
$ 75 per/mo $ 150 per/mo $ 225 per/mo $ 275 per/mo
Custodial 106% 90% 80% 71%
Non-custodial 99% 89% 78% 71%

Five Primary Strategies
Close the Case
Revise Interest Rate Policy
Compromise Interest
Compromise Uncollectible Arrears Owed to the
Government in Exchange for Compliance with
Current Support Order
n Compromise Arrears Owed to the State Because the
Order is Inconsistent with State Policy

Reasons for Not Charging Interest
Routinely
Child support arrears are not like other debt. Most child
support arrears are held by low-income obligors, many of
whom do not have access to the private credit market.
Research does not find that charging interest increases
compliance with child support orders.
When compliance with current support and arrears
obligations are incomplete, assessing interest is mainly adding
to arrears accumulation.

THATS ALL I CAN PUT in HERE the PDF file is too long an answer !

HERE it is

http://www.clasp.org/admin/site/publications/files/0247.pdf

I KNOW for fact that the interest can be dropped because it is NOT a secured debt

the case is proably past the statute of limitations for YOUR state and all FEES Penalties and inmterest should be removed and YOU only pay the orginal debt acoording to YOUR Income !

LMAO, THIS SEEMS WHAT SOOOOOO MANY WOMEN COMPLAIN ABOUT MEN

AND THEN WHEN THE SHOE IS TURNED, THEY WANT TO QUIT.

FACE YOUR RESPONSIBILITY.

True, there are no government funds available for this (yet). However, the creditors are going further to allow for settlements than ever before, as more debts are becoming delinquent. Aside from this, regulations require them to reduce a debt to zero if it’s more than 6 months delinquent (credit score already tanking).

The consolidation / settlement companies have been around for a while. I used one over 10 years ago to eliminate my finance charges and have a static sum to pay on. Now, these companies can get your total debt reduced by half or more (see article, I’m not making it up).

How debt consolidators work: they have lawyers call the banks and negotiate on your behalf, telling them you’re unemployed or whatever the case may be, and that the bank will never see that principal paid off. However, they will offer some percentage of it that you can pay off, without further interest rates, etc.

The banks will then close your accounts and collect only from the consumer debt agency.

All of this is bad for your credit rating, but not as bad as bankruptcy. The bank closing your account will knock a lot of points off your credit score, but once paid off, you may get new credit in the future. It’s not the end of the world. It did take me a few years after paying it off to increase my credit score to the 700s.

If you can’t pay the debt you have now, enrolling in a debt consolidation agency might be the only way out.

As for your arrears, you can file a motion with the court to have any interest penalties set aside.
http://docs.dads-house.org/Federal_Child_Support_Laws.pdf

After that, than discuss a settlement. You might even find that all you’ve been paying on is the interest. You principal may already be paid off. Have you requested a printout from child support enforcement on what you owe?
\\\

What is Debt Relief?
http://www.askaquery.com/Answers/qn1583.html

Debt Management and Building Wealth
http://www.askaquery.com/Answers/qn1581

How to lower your debts?
http://www.askaquery.com/Answers/qn1576.html

How to reduce debt : How to lower your expenses?
http://www.askaquery.com/Answers/qn1577.html

They have to prove that you still owe the debt before they can collect. If they can’t, then your don’t have to pay. Your debt may have been sold to multiple collection agencies. Check the link below for more info.
Also check the FTC website on this subject.
good luck

To find a legit one you should always review their fee structure. If they are charging ANYTHING up front walk away fast. This is the first sign that they are interested in collecting their fees before doing the hard work of negotiating. The most legit companies that help consumers settle their debt do not charge any upfront fees or monthly fees. They should also base their fee on a small percentage of what they save you, as this will assure you save the most of your debt. http://www.personalcreditsolution.com is an example of a company that does all negotiations before they charge a penny, and their low fees are only based on what a client saves.

Now that you have already enrolled in a settlement company the fee structure will not matter much to you now, because if they took their fees up front, the only thing you can do is stay on top of your accounts and make sure they are doing their job. Whenever you call to check on your accounts do not allow them to give you a run around, but rather ask for proof of the work that has been completed or the calls made to your creditors. Let them know you paid to get this done and you are carefully reviewing your accounts as wel for the work to be completed s promised.
Also make sure you keep all documentation from your settlement company if they have taken any fees up front. This will help you in case they go out of business due to the new law the FTC passed banning settlement companies from taking any fees upfront starting October.

Good luck, and just stay on top of your accounts with the settlement company as this will make sure they get your accounts done on time. As most settlement companies that take their fees upfront are more determined with enrolling more clients than actually working on the accounts of their current clients. Hopefully, you wont have to, but if you ever need to work with another settlement company just make sure there are no upfront fees to assure your account will be worked on.