Posted on: June 1, 2012
According to an article in USA Today, a big, though unanticipated change is in the works that could severely impact those behind on their child support
payments. The change is the result of an attempt by the Treasury Department to
reduce money spent by mailing out paper checks. The federal government will begin
making government benefits payments electronically in March of 2013. This means
that the paper checks that many rely on to shield a portion of their monthly
income from states attempting to collect back child support will disappear.
States have long had the power to
put a freeze on the bank accounts of those who are behind on their child
support obligations. A relatively recent ruling by the Treasury Department also
permits states to freeze Social Security, disability and veterans’ benefits
that appear in the delinquent parents’ bank accounts. Once the decision to
eliminate paper checks is implemented, some 275,000 people could lose access to
all of their income.
This presents huge problems for a
certain segment of the population, typically poor men substantially behind on
their child support payments. There are plenty of instances where such payments
are decades old and involve children who have long since grown up. Much of the
money owed is for interest and accumulated fees. Of the money that is collected
most will go to the states, not to the children of the men who were owed the
money. States are authorized to retain this money as repayment for the years
they spent providing welfare services for the children.
Beginning next March the Treasury
Department will deposit all federal benefits directly into bank accounts or
load them onto prepaid debit cards. No matter which method, state governments
will then be allowed to access the money. States are currently allowed to
garnish 65% of government benefits an individual is entitled to before they are
disbursed. This same limit will not apply once the money has been wired to an
account (or a prepaid debit card).
Though the goal is a good one,
the chosen method will likely be counterproductive. Many of the men on the
receiving end of this new payment system are already facing financial devastation
in the form of eviction, foreclosure and aggressive bill collectors. People who
owe large amounts of child support are almost exclusively poor and the numbers
tell the tale: among those owing $30,000 or more, three-fourths had either no
reported income or income of less than $10,000. By allowing states to seize
their remaining income stream - federal benefits - these men may very well be
left penniless.
Though there may not be much
sympathy for the people behind on their child support payments, it’s important
not to rush to judgment with overly punitive measures. If you find yourself facing
the prospect of divorce, contact an experienced Ohio
family law attorney
who can help guide you through the difficult process. Count on the expertise of
Twinsburg family law attorney Carol
L. Gasper.
Source:
“Rule
could leave poor, delinquent dads with no income,”
by The Associated Press, published at USAToday.com.
See
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