Failure to pay court ordered child support can lead to a number of consequences. Initial actions may include assessing interest on past due amounts and increasing paycheck withholding.
- Assessing Interest – Wisconsin law requires monthly interest charges of 0.5% monthly (6% yearly) be charged on past due support when delinquency equals or exceeds the amount due in one month.
- Paycheck Withholding – A parent owing past due child support may have the amount withheld from their paycheck increased up to 50% of the current court ordered amount, respective of the limits imposed by the Federal Consumer Credit Protection Act (CCPA).
Past Due Child Support: Administrative Enforcement Actions
When child support arrears meet a certain threshold, state and federal laws allow child support agencies to use administrative enforcement actions including liens on property to collect past due child support.
Liens to Collect Past Due Child Support
A child support lien is a hold on property such as house or car until past due support is paid. Liens must be paid off or released before the property can be sold. Typically a lien is created when past due support is $500 or more. A notice of lien will be mailed to the parent listing the amount of the lien and rights and procedures for disputing the lien amount.
If the debt is valid, a lien is placed on the parent’s real property (home, land) and titled property (automobile). The lien is reported to credit bureaus and the parent may be denied loans and grants until the lien is released or payment arrangements are made.
Depending on the amount of the lien, the child support agency may take additional actions against the parent listed on the Lien Docket:
- Intercepting lump-sum payments from public retirement funds, tax refunds, and judgments or settlements (such as a personal injury claim settlement)
- Seizing bank accounts including checking, savings, IRAs, and mutual funds
- Suspending or denying of professional, occupational, driver’s, and recreational licenses
- Seizing real property and titled property
Contact an Experienced Wisconsin Child Support Modification Lawyer
Delinquent child support payments result in negative consequences. Sometimes the reasons for falling behind on child support payments fall outside of the payer’s control such as a job loss, under employment, and even illness leading to financial difficulties. When you are unable to pay your child support obligation because of an unexpected change in your financial situation, it is important to work with an experienced Wisconsin and Illinois family law attorney promptly to explore a modification to the child support order. Contact Jane Probst for immediate assistance at 414-210-3135.