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0:05 2:08 If circumstances have changed significantly. Such as a job loss or medical emergency a judge MayMoreIf circumstances have changed significantly. Such as a job loss or medical emergency a judge May reduce future payments. However this does not erase the arrears already owed.
Interest is charged on all DCSS cases at the rate of 10% per year, with the following exemptions (for more information contact your Local Child Support Agency): A court order states a different interest rate to be charged.
7. Negotiating a Settlement with the Other Parent. Even though back child support cant be retroactively modified, the other parent may be open to waiving back support in exchange for a smaller lump sum payment. He or she may voluntarily reduce portion of the back child support that were unfairly accrued.
Interest rates and penalty calculations vary among states, but in California, if you fall behind on child support payments by more than 30 days, you can incur a penalty of 6 percent of the amount owed for each month it remains unpaid, up to a staggering 72 percent of the total amount due.
There are various factors that a court may consider when determining whether to modify or dismiss child support arrears, including interest. These factors may include a change in the noncustodial parents financial circumstances, the childs best interests, and any existing agreements between the parties involved.
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The Impact of Arrears on Your Financial Health Firstly, being in arrears can lead to additional costs. Late fees and interest charges can accumulate, making it even harder to catch up on missed payments. This can create a snowball effect, where the debt grows larger over time, causing more stress and financial strain.
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.

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