Have you been ordered to pay a certain amount of child support? This isn’t an obligation you can get behind on. Colorado law isn’t messing around when it comes to ensuring these payments are made in time. For individuals who fail to make the support payments, the consequences can be severe. The consequences can range from significant financial ruin to spending time in jail.

Financial consequences

The financial consequences for failure to pay child support can last long past your child reaching adulthood. According to the Colorado statute, the monthly child support payment is treated as a single judgment for each month in which it is not paid. The judgment allows the ‘obligee’ (the parent receiving the payment) to execute a full range of option available to a creditor and other options available for support judgments.

C.R.S. § 14-14-106 reveals that other judgments collect at least 8 percent yearly simple interest while kids support judgment collect 12 percent interest yearly, compounded monthly. Besides, the statute of limitations to collection of child support judgment is two decades (20 years). Therefore, if you owe $200 monthly and skip making the payments for ten years, it is possible to end up owing more than $100,000, though the principal is a small fraction of that amount. Once the judgment is made, your wage can be garnished up to 65 percent of your after-tax income. The entire issue can cripple you financially, and the Colorado law doesn’t stands by it.

One of the unique elements of child support judgment is that it can’t be erased by bankruptcy. In fact, most personal finance experts believe that once a support debt gets out of hand, it’s difficult to correct the mess. Fortunately, there are steps you can take if you feel you are falling behind. For instance, if you are failing to make the payments because your income is low after losing your job, C.R.S. 14-10-122 allows a modification of your child support agreement.

This can result in a 10 percent reduction of the support amount you are paying currently. Though it might take a few months for the modification to be implemented, the reduction will be applied back to the date you filed the request. If you have lost your job or you are in a situation in which you cannot make the set payment, it is advisable not to delay filing the modification request.

One of the effective routes to get out of large child support debt is the negotiation. The law allows the obligee to forgive the support debt. Thus, it’s possible for you to negotiate a settlement on the debt, especially in cases where there is a track record of failed payments.

The bottom line is, failing to pay child support, whether or not you are over-extended in your monthly budget, it is not a favorable situation to put yourself into. Consider working with an experienced attorney who understands support issues and can help you get the monthly payment reduced in case you have income challenges.

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