How to Collect A Child Support Judgment
By Douglas A. Turner, Esq. • May 18th, 2007 • Category: Child Support Collection, Colorado Collection LawNote: Updated on May 2008.
Yes, he owes child support, and he owes a lot. Can that child support judgment be collected? For many single mothers in Colorado or other states, the answer is yes, but it is going to take some work. Here are some suggestions for turning that debt into hard currency.
1. Calculate How Much Child Support is Owed
The first step in collecting a child support judgment is to calculate exactly how much is owed. Unlike other debts, a Colorado child support judgment currently accrues interest at 12%, compounded monthly – that’s right, monthly. However, the child support interest rate in Colorado has changed many times over the years. The Colorado interest rates for a child support judgment are as follows:
- Prior to July 1, 1975 – 6% simple interest
- July 1, 1975 thru June 30, 1979 – 8% simple interest
- July 1, 1979 thru June 30, 1986 – 8% compounded annually
- July 1, 1986 thru June 30, 1994 -12% compounded annually
- July1, 1994 thru present -12% compounded monthly
Depending on the age of the child support judgment, several separate computer spreadsheets may be necessary to properly compute the amount owed. Fortunately, there are software programs available to make these calculations. Please call or contact our office and we will direct you to the right software companies, or ask about our contingent fee program for collecting a Colorado child support judgment.
In calculating the exact amount owed, it is probably worthwhile to make the calculations from the very first child support payment due, even if paid, because over time, the interest due on late payments can be substantial. It can also give you some leverage when negotiating a payoff amount.
2. Collect Child Support Through Income Assignment
After calculating the amount due, it is now time to try and collect. If a wage/income assignment is already in place, it can be as easy as modifying the existing wage/income assignment. In most cases, however, there is no wage/income assignment in place or the person who owes the child support judgment is self employed.
If the debtor’s employer is known, there are forms available on the Internet to help activate an income assignment. However, legal counsel can be very helpful in deciding which forms to use. Depending on the date the support order was entered and the facts and circumstances of the case, an advance notice of activation of income assignment (Form JDF 1806) may be necessary.
3. Hire a Private Investigator
What if the person who owes the child support judgment or the current employer cannot be located? Well, some sleuthing is necessary to find that information. Typically, a private investigator will be able to locate just about anyone. Locate searches start at about $20.00 (if you know the right person!) and run as much as several hundred dollars.
What if the person who owes the child support judgment has left Colorado? Most states now provide services to help reach out and touch that person’s wallet from afar. These state-provided agencies can apply significant pressure to the debtor. However, child support enforcement services needs detailed documentation of the amount owed and seldom collect the all-important interest on the child support judgment. This is where a good lawyer can help. Most states will only collect the actual amount of the child support order and not the compound interest on the child support judgment. The exception is when that interest has been formally turned into a judgment. It is very important that the judgment specifically state that it is a child support judgment. While we keep referring to the “child support judgment” in this article, technically, that is not correct. It is a child support order, treated just like a judgment, that can be reduced to a formal child support judgment by further order of the court. There is a BIG difference in a formal child support judgment when it comes to collecting the compound interest.
Does the person who owes the child support judgment have assets? This is something to investigate. An asset search may be worthwhile. A private investigator can complete a detailed asset search on the debtor. Once assets of the child support debtor are located, legal counsel can execute upon (i.e., take) those assets to pay the child support judgment.
5. Supplement Colorado Child Support Enforcement Services
Let’s talk about Colorado child support enforcement services and child support enforcement services of other states. Many people who have relied exclusively on the State to help them collect their child support judgment are disappointed in the results and the time it takes to accomplish those results. State-run services are very helpful, but seldom do the state agencies collect the full child support debt owed. By supplementing the state services with personal efforts, the chances of collecting all the child support judgment increase.
6. Persistence is the Key in Collecting Child Support Debt
A child support judgment is good for 20 years, meaning that 19 years after the money is owed, a person can still collect and collect with interest. Even if it looks like a lost cause, checking up on the debtor every couple of years can pay off big.
7. Use a Contingent Fee Lawyer to Collect a Child Support Judgment
Our Colorado law firm will accept a limited number of past due child support collection cases on a contingent fee basis. Contingent fee means that is there is no money collected, no legal fees are owed. Please call our office at (303) 273-2923 or (800) 850-0607 or contact us for more details.
Douglas A. Turner, Esq..
This column is not legal advice nor does it create an attorney-client relationship with the reader. Due to limited space, complex legal concepts and rules may be stated in terms of general concepts.
Based on 2007 Colorado and Federal law. Consult legal counsel before acting on any information contained in this column.
Contact Us | © Douglas A. Turner, P.C.
I have statements from the Child Support Agency from the year 1994 to 2008. Each statement reflected what I owed and the amount to be paid. The payments were made on rears of 7 thousand each year and brought the full amount down over 1 thousand ecah ear.
By the time 200 came I was payed in full. Child support sent me statement that indicated I owe them Zero dollars and zero cents.
I asked for this statement every year since 200 and it reflected the same zero amound on rears since the payment has been payed un full according to them.
7 years later ( 2007 ) I receive a letter stating I woe the 7 thousand again. But this time I was stating they never charged me interest at 9%.
After calling as many numbers as I could, I finaly got a responce that we cold and non helpful like a machine stating I owe the interest that was never charged.
After they accumulated the amount they feel should be charged it came out to the 7 thousand all over again.
I NEVER received anything that told me the interest were not added on each statement since 1994. I also did not receive anything for 7 years after the payment was payed in full.
Whats going on here? If they never sent me a bill, statement or notice at all about the interest, why do I have to pay this even after it was payed in full. NOTE: I have every single peice of paper that was sent to me since 1994 from child support.
In my statement about collecting interest on past payed child support
I MISSED ONE LETTER THAT CHANGED THE LINE:
I TYPED: But this time I was stating they never charged me interest at 9%.
IT SHOULD HAVE READ: But this time IT was stating they never charged me interest at 9%.
George:
We would have to review all the documents to be able to advise you. Please call to set up an appointment.
FYI: From the interest rate, I assume you are not in Colorado? If so, you should consult legal counsel in the state with jurisdiction over the child support. I urge you NOT to ignore this. In many states, child support arrears can be collected as long as you are living.
I was awarded a judgment for child support arrearage in the amount of $175,959.56 in April 2006. I would like to sell this debt. Does your company work on these situations? My ex-husband has and still is currently paying me on this debt at $977.55 per month. He tried to appeal this judgment and was denied in the court of appeals no : 06CA1154, Arapahoe County District Court #82DA1094 0n February 21, 2008. It is a good debt. He does not own real estate that I am aware of, he does work and makes good money/educated-makes over 100,000 a year, and I can show (through the child support registry and my bank statements) that I have been able to collect this debt since 1997 on a monthly basis. He is 49 years of age and healthy, works in the same industry that he has since 1987, and may be inheriting family money in the near future. It is my understanding that he cannot bankrupt this debt due to the fact it is arrearage for child support.
If anyone knows of a compan that will buy this debt, please contact me on bethannt@bresnan.net.
After 10 years of non payment, a jugement was brought against my husbands ex-wife for non-payment of child suport. She owed nearly $25,000. The jugement was for $10,000. After all these years, we are fine with this. (well, not “fine” ~ resigned I guess). Now, she has asked my hubby & I or forgiveness her of this debt, or reduce it further… Can a judgement be modified by us/hibby? Crazy as it sunds, we are considering it if possible.