Interest On Past Due Child keep

If you're late on your owed child support, chances are that you may be facing added payments for the interest on the past due child support. While most states today now attach the hold fees to your paycheck, some cases need you to send a check on time. If you're having financial issues or have lost a job, it's inherent that you can start running behind on those payments.

Not all of the states need an interest payment. However, the plan is becoming more appealing to more states and it seems that the custom is becoming more common. If your state or the state the child lives in, requires interest payments you can expect the interest to begin accruing on the first day the check is late. For each day thereafter the total in interest alone increases.

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This is done for two reasons. First, those states that have adopted this policy believe that a built-in penalty creates a reasonably reduced opportunity that parents will delay their payments for any reason. Using a hold check as a weapon is less likely if the non-custodial parent knows that they will plainly end up paying much more over time.

The second conjecture that the participating states hire this practice, is to compensate the child. If a child has to wait a duration of time for the hold payment they are thought about to be suffering. This type of suffering can vary depending on the custodial parent's situation. Regardless, the states feel that children who must wait are to be added compensated to help undo any hardship created by the late payment.

Calculating the interest rate will depend entirely on the state of residence. On average, the states that have a set rate tend to lie in in the middle of 10 and 12 percent. The highest set rate is 15 percent for residents of the state of Maine. States like Missouri only payment a menial 1 percent per month.

Many states do not indicate a predetermined rate of interest. Often the interest number is set by a judge once lateness has been proven by the custodial parent. For instance, Pennsylvania plainly indicates that it will payment a "lawful rate." These types of provisions are commonly set to isolate the parents who are having legitimate financial problems and the parents that are plainly negligent on their payment obligations.

The interest on past due child hold can be a primary prophylactic for late payments. For many parents that are running behind, the added charges can be a serious hinderance when trying to catch up their payments. Often cases have gone to court where a predetermined rate is set in place. Few of these cases have ever seen the interest rate drop upon plea. Thus, it is surely in everyone's best interest to profess current hold payments.

Interest On Past Due Child keep