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What happens if your account goes into arrears?

If you frequently have accounts in arrears, then lenders will see you as less reliable. This is because you have made a reputation of paying late. Lenders need to know that theyre going to make a good return on their investment. Remember: Lenders lend money to make money.

Is the California debt relief program real?

With the approval of the court, the parties have the right to compromise and settle child support arrears owed directly to the person owed support (family-owed arrears). State-owed debt cannot be forgiven.

What is the California compromise of arrears?

COAP is a California program designed to help you reduce the child support debt owed to the government. If you qualify, you will be offered an opportunity to pay an amount that is less than the full amount you owe. Qualification is not a guarantee that arrears will be compromised.

What happens if you are in arrears?

You may be charged a fee for a late payment and also have to pay more in interest. If you remain in arrears for a number of months despite warnings, the situation may be escalated, so its important to take steps to address it as quickly as possible.

What are the consequences of being in arrears?

While you are in arrears your credit rating may be affected which means it may be more difficult for you to get a loan in the future.

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