interest

[424Smudge]

What is the name of your state?Az

Is the subject of interest on arreages ever discussed on this forum? Does the receiver of the interest have to claim this as interest income for tax purposes? This law can prevent (or at least make it very hard for) a person from ever getting up to date. Is Arizona the only state that collects this?

 

[BelizeBreeze]

every state collects by statute, interest on the arrears just as if it were a judgement.

 

[LdiJ]

every state collects by statute, interest on the arrears just as if it were a judgement.

And no....oddly enough the interest is not considered to be taxable income.

Interest is one reason why a parent should strive to pay the maximum possible towards their arrearages...because if they don't, the debt continues to grow.

 

[Zephyr]

What is the name of your state?Az

Is the subject of interest on arreages ever discussed on this forum? Does the receiver of the interest have to claim this as interest income for tax purposes? This law can prevent (or at least make it very hard for) a person from ever getting up to date. Is Arizona the only state that collects this?

however a person can opt not to have to pay interest by never going into arrears in the first place.

 

[424Smudge]

however a person can opt not to have to pay interest by never going into arrears in the first place.

Sometimes poop happens... people get laid off, get fired, get hurt, sometimes the issue is unavoidable. My friend owes a substancial amount of arrears because he was in a motorcycle accident and was in a coma for 3 months and then in rehab for almost a whole nother year. The judge didn't even care and kept the arrears where they were.

 

[Zephyr]

Sometimes poop happens... people get laid off, get fired, get hurt, sometimes the issue is unavoidable. My friend owes a substancial amount of arrears because he was in a motorcycle accident and was in a coma for 3 months and then in rehab for almost a whole nother year. The judge didn't even care and kept the arrears where they were.

probably because the issue wasn't addressed promptly, of course he was in a coma so he really couldn't ask for a reduction but someone handling his affairs at the time should have let cse know the situation, then when he was out of the coma and given his proposed length of recovery he should have contacted cse immediately, and filed in court for a modification.

 

[424Smudge]

probably because the issue wasn't addressed promptly, of course he was in a coma so he really couldn't ask for a reduction but someone handling his affairs at the time should have let cse know the situation, then when he was out of the coma and given his proposed length of recovery he should have contacted cse immediately, and filed in court for a modification.

No his parent's tried to step in and represent him. They tried and tried but the judge kept telling them that they would have to have a special power of attorney in order to stand in for him. They couldn't hire a lawyer for him because all lawyers require you to sign that attorney priv stuff. Most of his rehab included a lot of speach therapy and learning how to operate again on a day to day basis. He even had to be potty trained. And he did contact CSE as soon as he could but they twiddled their thumbs and of course nothing ever got done in time.