Tag Archive for: arrears

It can be difficult to catch up on support if a large arrears balance accrues. Unfortunately, sometimes the party paying support has good intentions to pay support but due to circumstances out of their control, end up falling behind. It may be possible to arrange a settlement to clear up an arrears balance. The settlement will generally involve a reduced total in exchange for a lump sum payment. Such an arrangement can be agreed upon between two private parties at any time. There is more gray area when the debt is owed to the State.

The majority of the states either have a fully implemented debt compromise plan or make a decision on debt compromise proposals on a case-by-case basis. The rationale in even allowing debt compromise is to increase the likelihood the states will receive some of the debt owed as opposed to no payment at all. Pennsylvanian and New Jersey both consider debt compromise plans on a case-by-case basis. In Pennsylvania, by rule of the Supreme Court, any compromise on debt owed to the state must be approved by court order.

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One of the consequences of failing to pay child support is a suspension of your driver’s license. This can happen if support is overdue by three months or more. Advance notice must be given prior to the suspension. The notice specifies the past due amount, how, when and where it can be contested. Grounds for contesting notice of suspension are limited to mistake in the amount of past due support actually owed or mistaken identity. The suspension will occur after thirty days if there is no response, the past due amount is not paid or excused, or there is not a court-approved payment plan in place.

The available methods to have a driver’s license reinstated mirror those that could prevent a suspension in the first place. They include paying the past due amount, entering into a court-approved payment plan or being excused from the obligation. A driver’s license is not the only license subject to suspension. The court also has the authority to suspend recreational licenses issued by the Pennsylvania Game Commission as well as licenses issued by the Fish and Boat Commission. There is no right to appeal an order suspending a license. The only option is to petition the court that ordered the suspension for relief. Additionally, car insurers are prohibited from taking adverse actions, such as increased premiums or rate penalties, if a suspension occurs under 23 Pa C.S. 4355.

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