- Review how delinquent child support payments can affect a credit report.
- Examine the kinds of collection efforts that can result from delinquent child support.
- Understand the steps you can take to collect on delinquent child support you are owed.
My ex has been reported to the credit bureaus due to non-payment of child support. How will this affect him?
My ex has been reported to the credit bureau due to non payment of child support. He has a home with no mortgage, tons of investments, several credit cards (always paid off), and at least 2 lines of credit always available. How is this going to affect him in any fashion?
Thank you for your question about delinquent child support payments you are entitled to receive but have not received and the implications of the delinquent payments appearing on your ex-spouse’s credit report.
Strong Negative Effects Possible When Delinquent Child Support Payments are Reported
The fact his delinquent child support payments have been reported to the consumer credit reporting agencies will likely have a negative impact on your ex-husband’s credit rating, which could make it more difficult for him to obtain credit in the future. In addition, his current creditors, such as the credit cards you mention in your question, may see him as a higher risk borrower due to the child support delinquency appearing on his credit reports.
Even if he makes his payments to his other creditors on time, any significant decrease in his credit score may cause them to lower his credit limits and increase his interest rates. The reduction in his credit score may also result in the closure of his open credit lines, depending on how much the delinquent support damages his overall credit rating.
To learn more about how delinquent accounts, including unpaid child support, can affect a consumer’s credit profile, visit the Bills.com credit resources page.
Delinquent Child Support Can Lead to Garnishment, Levy, Suspension of Driver’s License
Having fallen behind on his child support payments, your ex-husband likely has much more to worry about than his credit score. Failure to make court-ordered child support payments has serious consequences, many of which your ex-husband may not have considered when he decided to stop paying his child support. In addition to being reported to the credit bureaus, unpaid child support can result in the suspension of the non-custodial parent’s driver’s license, the garnishment of his wages, levying of his bank accounts, seizure of property, and in severe cases, can even result in jail time.
Consult with your attorney as soon as possible to discuss the options available to assist you in enforcing your ex-husband’s child support obligations. It sounds like your ex-husband has significant assets, including investments and a home which is paid off. You may be able to collect against these assets, forcing your ex-husband to pay his delinquent child support by seizing his investment accounts or by forcing the sale of his home.
Unsure how to handle your debt? Let the Bills.com Debt Coach tool give you a customized report on your debt resolution options. It’s free!
Use All Resources Available to Collect Delinquent Child Support
Contact your state’s child support enforcement agency. Many states will assist custodial parents in collecting on delinquent child support debts, which can be especially helpful for parents who are struggling financially and can therefore not afford an attorney. State agencies can also take direct action such as suspending the drivers’ licenses of delinquent parents, which has proven to be an effective way to coerce obstinate individuals to pay up.
Find a state-by-state list of child support enforcement agencies by visiting the U.S. Department of Health & Human Services Child Support Websites and General Contact Information page. This Web site can also help you find federal government resources that can assist you in enforcing an outstanding child support obligation.
Consult with your attorney as soon as possible to discuss the options available to help you collect on this debt.
I wish you the best of luck in collecting your ex-spouse’s delinquent child support payments. I hope this information helps you Find. Learn & Save.
Best,
Bill
Dealing with debt
If you are struggling with debt, you are not alone. According to the NY Federal Reserve total household debt as of Quarter Q4 2023 was $17.503 trillion. Student loan debt was $1.601 trillion and credit card debt was $1.129 trillion.
According to data gathered by Urban.org from a sample of credit reports, about 26% of people in the US have some kind of debt in collections. The median debt in collections is $1,739. Student loans and auto loans are common types of debt. Of people holding student debt, approximately 8% had student loans in collections. The national Auto/Retail debt delinquency rate was 4%.
Each state has its rate of delinquency and share of debts in collections. For example, in Florida credit card delinquency rate was 4%, and the median credit card debt was $456.
Avoiding collections isn’t always possible. A sudden loss of employment, death in the family, or sickness can lead to financial hardship. Fortunately, there are many ways to deal with debt including an aggressive payment plan, debt consolidation loan, or a negotiated settlement.
