If you owe arrears, depending on your circumstances, you may be able to negotiate the arrears (and interest) down significantly. Generally, arrears owed to the local child support agency for public assistance reimbursement (i.e. welfare) may be negotiated downward if certain requirements are met. If you owe money directly to the custodial parent, (i.e. non-welfare monies), the arrears cannot be reduced by the local child support agency unless the custodial parent participates and consents to the settlement.
The government is provided under the law, broad enforcement powers to enforce and collect court ordered child support. I had a client whose application of a renewal of his passport was denied due to an arrears balance of $118,595.71. The debt was not owed to the government but to the custodial parent. I worked with all the parties involved: the custodial parent, the child support agency and its attorney and my client to resolve a reasonable resolution that would be to the best interest of the subject child at issue (who is now age of majority).
After months of negotiations, I was able to finalize a deal which zeroed out my client’s high debt upon a lump sum payment of $12,500. A client’s wife from Honolulu called me recently since her husband could not travel back to the United State since his passport could not be renewed. He had severe medical conditions and needed treatment. His case was based in California and the clients were in Hawaii. There has been no contact between both parents for years.
I located the mother, spoke to her and was able to convince her that a lump sum settlement is more fiscally advantageous than the monthly payment plan she is receiving. Since time was of essence, a motion was filed and the matter was heard in court. Both the child support attorney and the judge consented to the agreement and the client’s passport was released.
A court document must be completed and filed with the court with all parties signatures affirming the agreement to insure that there is no doubt as to the credibility and validity of the waiver. It is crucial that the attorney you hire to negotiate on your behalf is trusted by the custodial parent and do not employ any coercive or intrusive tactics. It must be clear that the goal is not to “nickel and dime” the custodial parent but that an agreement is reached with the child’s interest as the primary goal.
Notwithstanding the court or the child support agency’s broad powers to insure collection of the arrears, only a custodial parent (non-welfare) has the power to waive arrears. The court is also without power to waive the interest that has accrued. Like my case, the parent entitled to the support chooses, for whatever reason, waived part or all of the support arrears and the interest that has accrued thereon, the attorney should prepare a stipulation and order to be filed with the court for the agreement to be finalized.
Keep in mind that if the arrears have been assigned, defined as “welfare reimbursement” support arrears cannot be legally waived. There was what was called a Compromise of Arrears Program (COAP) that was in effect until July 1, 2008. In certain cases, the law allowed a parent to pay less than his or her total child support debt owed to the government. The agency determines if you are eligible and the eligibility requirements are very specific.
There is a special compromise opportunity for certain military personnel. Current reservists or National Guard that have been activated to military service and deployed may receive a total compromise of any governmental arrears. This is because their current child support was not changed to reflect that their pay in the military is less than their pay in the civil workforce.
The primary objective by both parents and the government in the collection of child support for the minor(s) is to determine and set forth what is for the best interest of the child. As such, having an attorney that does not lose sight of this goal insures that the negotiations amongst all parties are effective and fair.