When a parent fails to make child support payments as ordered by the court, it can have serious consequences. In fact, it can even have a negative impact on their credit score.
It is very important for non-custodial parents to understand how back child support can affect credit bureau reporting.
Penalties for unpaid support
Back child support, also known as arrears, refers to the unpaid child support payments that accumulate over time when a parent fails to meet their court-ordered financial obligations. These payments are typically owed to the custodial parent or guardian who is responsible for the day-to-day care of the child. Failure to pay child support can result in legal consequences, including wage garnishment, property liens and even imprisonment in extreme cases.
According to the Department of Health and Human Services, back child support can be reported to credit bureaus. This can have a significant impact on a parent’s credit score and overall financial health. When child support arrears are reported to credit bureaus, it can result in a negative mark on the parent’s credit report. This could make it difficult for them to obtain credit cards, loans or even secure housing.
Dealing with back support
Once reported, the negative impact on the credit report can be long-lasting and difficult to remedy. Parents who find themselves facing back child support payments should take action to address the issue as soon as possible. It is important for parents to understand that failing to address back child support payments can have far-reaching consequences beyond just financial penalties. It can strain relationships with their children, lead to legal trouble and negatively impact their credit score.
By being proactive and addressing overdue child support payments promptly, parents can avoid the negative consequences associated with back child support and work towards a more stable financial future for themselves and their children.