A judge may set the amount of child support according to the income of the parent. But if a parent cannot pay the specified amount, he accrues debt, known as arrears.This debt can cause a negative impact on the parent with no or low income as he or she will face the most significant percentage of arrears.
Child support debt grows at an interest rate of 12 percent and does not discharge even if the parent is bankrupt.If the custodial family receives TANF assistance, it cannot receive full child support payment in most of the state.
The portion or all those payments go to the government for welfare reimbursement purposes.Research shows that governments owe about 70 percent of the child support debt in California’s child support system.
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