Child Support Services (CSS) sends a notice to noncustodial parents (NCP) and custodial persons (CP) in IV-D cases at least once every 12 months, unless the amount of past due support has been determined in a court proceeding within the past twelve months. CSS refers to this notice as a Notice and Order of Child Support Lien or Annual Notice (AN).
Section IV of the AN is designed to establish a payment plan on past due support. CSS is authorized to direct the obligor to make specified periodic payments to satisfy the past-due support. This “payment plan” or “schedule” becomes operative if the obligor fails to make a timely request for an administrative review or fails to appear at a requested review.
CSS uses information available from courts, Title IV-A services, CPs, NCPs, CLEAR reports, and other re-sources to determine the monthly gross income for the Obligor. This aids in setting an affordable payment plan. These tools include:
- Written earning records (wage reports)
- Past job history
- Review FCRL and OWL (SSN) for income
- Earning ability based on education and training
- Review CSRL for IV-A services
A continued emphasis is on setting fair and equitable orders. It is important to set a practical payment plan based on the Obligor’s income and assets. The Obligor is more likely to comply with a reasonable order based upon the ability to pay. The goal is to make child support a more reliable source of income for the family.
There are occasions when an Obligor can afford to pay off the total amount past due in 36-months. If the total past due amount including interest is $4,500.00, the 36-months payment amount would be $125.00. An Obligor earning $3,500.00 per month (gross) can afford a larger judgment payment than someone earning minimum wage. If the Obligor also pays $700.00 per month in current support, then $125.00 judgment payment might be too high. Discuss the payment plan with the parties when possible.
See this Quest article, Notice of Intent to Revoke (NOIR) Process for criteria and a checklist.
Scenario of Payment Plan on Past Due Support
In this scenario, OSIS reveals the Obligor earns $3,000.00 per month (Screen: FCRLQW). The approximate actual or net in-come is $2,400.00. On the 001 case, a judgment payment has been established. On the 002 case, a judgment payment needs to be complete.
On the 001 case:
Current support is $400.50 per month.
Judgment payment is $100.00 per month.
Judgment balance is $2,500.00 principal. Interest is $900.00.
Total judgment is $3,400.00.
On the 002 case:
Current support is $222.50 per month.
Arrears of $5,000.00 principal. Interest is $2,000.00.
Total arrears are $7,000.00.
36-months payment plan would be $194.44. This payment plan would be unjust and unreasonable, because the NCP already pays $723.00 per month total. Adding $194.44 would result in the NCP paying $917.44 per month on his two cases.
In the Annual Notice, the default payment plan should be changed to reflect a reasonable amount per month such as $25 or another amount based upon the NCP’s income and assets.
These findings should also motivate the CSS to modify or recommend the review of the current support on the 001 case.
Remember: If the payment plan is unreasonable in cost, negotiate with the parties when feasible to set a reasonable and just amount.
Legal Authority: see this Quest article – Annual Notice Legal Authority