TL;DR: Child support arrears cannot be discharged in bankruptcy and accrue interest (6-12% annually in most states). Federal tax refunds will be intercepted for balances over $500. Create a payoff plan by contacting your state agency for your exact balance, requesting a payment plan, and prioritizing arrears payments to avoid enforcement actions.
Falling behind on child support creates arrears—past-due amounts that continue to accumulate until paid. Unlike many debts, child support arrears have unique rules and serious consequences. Here’s how to understand and plan for arrears payoff.
What Are Child Support Arrears?
Arrears accumulate when:
- You miss payments entirely
- You pay less than the ordered amount
- Payments are late (even by a day)
Once arrears exist, they don’t go away until fully paid—not even through bankruptcy.
Why Arrears Are Different from Other Debts
Cannot Be Discharged in Bankruptcy
Child support arrears are non-dischargeable in both Chapter 7 and Chapter 13 bankruptcy. You must pay them regardless of your financial situation.
Interest Accumulates
Most states charge interest on arrears, making the balance grow over time if not addressed.
Strong Enforcement
Agencies can pursue arrears through:
- Wage garnishment (up to 65% of disposable earnings)
- Tax refund interception
- Bank account levies
- Property liens
- Passport denial (over $2,500)
- License suspension
- Contempt of court (jail time)
No Statute of Limitations
In most states, child support arrears never expire. They can be collected decades after children are grown.
Understanding Interest on Arrears
Interest rates on child support arrears vary significantly by state:
| State | Interest Rate |
|---|---|
| California | 10% annually |
| Texas | 6% annually |
| Florida | 12% annually (simple interest) |
| New York | 9% annually |
| Illinois | 9% annually |
| Ohio | 10% annually (judgment rate) |
Interest Impact Example
Starting Arrears: $10,000 Interest Rate: 10% annually Monthly Interest: ~$83/month
If you pay only $100/month toward arrears, $83 goes to interest and only $17 reduces the principal. The debt barely shrinks.
Calculating Your Arrears Payoff
Basic Payoff Calculation
Formula:
Months to Payoff = Total Arrears ÷ Monthly Payment
Example:
- Arrears: $12,000
- Extra Payment: $300/month
- Payoff Time: 40 months (3.3 years)
Including Interest
With interest, the calculation becomes more complex. Use our budget impact calculator to see your personalized payoff timeline.
Creating an Arrears Payoff Plan
Step 1: Know Your Exact Balance
Contact your state’s child support agency to get:
- Current principal balance
- Accrued interest
- Any fees or penalties
Don’t guess—interest can add hundreds or thousands to what you think you owe.
Step 2: Determine Affordable Payment
Calculate what you can realistically pay each month:
- Start with your budget after essential expenses
- Consider tax refunds as extra payments
- Look for ways to increase income temporarily
Step 3: Prioritize Arrears
Arrears should be a high priority because:
- Interest rates are often high
- Consequences of non-payment are severe
- They affect your credit score
- They won’t go away without payment
Step 4: Request a Payment Plan
Many states offer formal payment plans that:
- Stop additional enforcement actions
- Set reasonable monthly amounts
- May reduce or waive some penalties
Step 5: Consider Lump Sum Settlement
Some states allow partial lump sum settlements:
- You pay less than the total arrears
- State forgives the remainder
- Typically requires negotiating with the agency
Note: Not all states allow this, and it usually only applies to state-assigned arrears (not arrears owed directly to the other parent).
Strategies to Pay Off Arrears Faster
1. Direct Extra Income
Apply windfalls directly to arrears:
- Tax refunds
- Bonuses
- Inheritance
- Side gig income
2. Increase Automatic Payments
If your state allows voluntary extra payments through garnishment:
- Add $50-100 per paycheck
- Automatic payments reduce temptation to spend elsewhere
3. Negotiate Interest Reduction
Some states will reduce or waive interest if you:
- Enter a payment plan
- Make consistent payments
- Demonstrate financial hardship
4. Seek Modification of Current Support
If your current support order is too high:
- Request modification based on current income
- This frees up money for arrears payments
- Continue paying current support during the process
Arrears and Tax Refunds
The Federal Tax Refund Offset Program collects arrears from:
- Federal tax refunds
- State tax refunds
- Stimulus payments (in some cases)
Minimum Threshold
- Federal offset: $150 (for TANF cases) or $500 (non-TANF)
- State offset: Varies by state
What to Expect
If you have arrears and expect a tax refund:
- File your taxes normally
- You’ll receive a notice if your refund is offset
- The offset amount goes toward your arrears
- You receive any remaining refund
Arrears Payoff Calculator
Use our free budget impact calculator to:
- Enter your current arrears balance
- Add your proposed monthly payment
- See your estimated payoff timeline
- Understand the interest impact
When Arrears Feel Overwhelming
If your arrears balance feels impossible:
- Don’t ignore it - Enforcement will only get worse
- Contact the agency - They can set up reasonable payment plans
- Seek legal help - An attorney may help negotiate reductions
- Stay current - Always pay current support on time
- Be patient - Even small payments eventually eliminate the debt
Frequently Asked Questions
Can child support arrears be discharged in bankruptcy?
No. Child support arrears are non-dischargeable in both Chapter 7 and Chapter 13 bankruptcy. You must pay them regardless of your financial situation.
Will my tax refund be taken for arrears?
Yes, if your arrears exceed $500 (non-TANF cases) or $150 (TANF cases), the federal government will intercept your tax refund. Many states also intercept state tax refunds.
How much interest do states charge on arrears?
Interest rates vary by state, ranging from 6% (Texas) to 12% (Florida) annually. This interest compounds, making it critical to address arrears quickly before the balance grows substantially.
Can I negotiate a payment plan for arrears?
Yes, most states offer formal payment plans that can stop additional enforcement actions. Contact your state child support agency to request a plan based on what you can realistically afford.
Do arrears ever go away?
No. Child support arrears have no statute of limitations in most states and can be collected decades after children are grown. The only ways to eliminate arrears are full payment or, in rare cases, lump sum settlement negotiations with the state.
Calculate Your Arrears Payoff Plan
Don’t let arrears spiral out of control. Use our free calculator to:
- See your exact payoff timeline based on your balance and payment amount
- Understand how interest affects your total repayment
- Model different payment scenarios to find what works
- Plan for when you’ll be arrears-free
Calculate Your Arrears Payoff Timeline
Conclusion
Child support arrears require immediate attention and a realistic payoff plan. Use our free calculator to understand your payoff timeline and create a strategy that works within your budget.