Does Back Child Support Go On Your Credit?
Navigate the complexities of child support payments and their potential influence on your credit.
Child support represents a significant financial obligation for many individuals, designed to provide for the welfare of children. Understanding how such financial responsibilities, particularly when they become past due, might influence one’s financial standing is a common concern. This article explores how child support obligations, especially unpaid balances, can intersect with an individual’s credit profile.
How Credit Reports Work
A credit report serves as a detailed record of an individual’s financial history, providing a snapshot of their creditworthiness. This report includes personal identifying information, payment history for various accounts, and certain public records. The three major nationwide credit bureaus—Equifax, Experian, and TransUnion—collect and maintain this data.
Information is supplied by lenders and creditors, who report details on accounts such as credit cards, mortgages, and auto loans. These reports detail account opening dates, credit limits, current balances, and payment timeliness. Public records like bankruptcies also appear on these reports.
Child Support and Your Credit Report
Child support obligations are not typically reported to credit bureaus as a positive tradeline; on-time payments do not help build credit history. This is because child support is a legal obligation, not a traditional form of credit. However, delinquent child support payments, known as arrears, can negatively impact a credit report.
Many state child support enforcement agencies report past-due support amounts to credit bureaus, especially once arrears reach a threshold, such as $1,000. This reported delinquency can appear as a collection item or a specific notation of the outstanding debt. Negative marks can reduce a credit score and remain on the report for up to seven years, even after the debt is satisfied. If a court judgment is issued for unpaid child support, this public record could also appear on a credit report.
Other Consequences of Unpaid Child Support
Beyond credit report implications, failing to pay child support can lead to legal and financial consequences. State child support agencies use various enforcement tools.
One common method is wage garnishment, where a portion of the non-paying parent’s income is withheld directly from their paycheck. Federal law allows up to 50% of disposable earnings to be garnished if the individual supports another dependent, and up to 60% if they do not. An additional 5% may be withheld if payments are more than 12 weeks late.
Another enforcement mechanism is the interception of federal and state tax refunds. The amount can be diverted to cover outstanding child support debt. State agencies also have authority to suspend various licenses, including driver’s licenses, professional licenses, and recreational licenses.
Unpaid child support can result in the denial of a U.S. passport. Courts may also place liens on real estate or other personal property, which could lead to the seizure and sale of assets to satisfy the debt. A non-paying parent can face contempt of court charges, which may result in fines, community service, or jail time.