Interest on Past Support and Support Arrears

DCSS-POL-05-8 v.2

1. OVERVIEW

1. The purpose of this policy is to provide staff and members of the public a working knowledge of how and when interest legally accrues on past support and support arrears in title IV-D AZCARES cases.

2. APPLICABILITY

1. This policy applies to all Arizona IV-D program staff performing Title IV-D services.

3. POLICY

1. Interest accrues on past support and support arrears in title IV-D ATLAS cases according to the following criteria.

4. CRITERIA

1. Support arrears not reduced to a final written money judgment accrue interest at the annual rate of ten percent beginning at the end of the month following the month in which the unpaid support payment is due.
2. A support arrearage reduced to a final written money judgment accrues interest at the annual rate of ten percent beginning after the end date of the judgment period.
3. Past support reduced to a final written money judgment before September 26, 2008 accrues interest at the annual rate of ten percent beginning on entry of the judgment by the court.
4. Past support reduced to a final written money judgment on or after September 26, 2008 does not accrue interest for any time period.

1. A past support judgment includes an amount for a time period before the establishment of support.

5. Notwithstanding any other law, the court may suspend the imposition of future interest that accrues on a judgment for support for the period of time the NCP is incarcerated or physically disabled to the extent the person is unable to maintain employment.
6. Fee debts do not accrue interest.
7. Interest accrues only on principal and not on interest.
8. DCSS retains interest paid on arrears assigned to the State that do not exceed the total amount of unreimbursed cash assistance.
9. Beginning October 1, 1997 and through September 30, 2000, the DCSS allocates the amount of interest on permanently assigned, temporary assigned, never assigned and unassigned arrears based on a proportionate share of the total amount of arrears owed.
10. Beginning on October 1, 2000, the DCSS allocates the amount of interest on permanently assigned, temporary assigned, conditionally assigned, never assigned, and unassigned pre and during assistance arrears based on a proportionate share of the total amount of arrears owed.
11. The law of the issuing state governs the accrual of interest on the arrearages under a foreign order, unless registered and modified in Arizona.
12. When a foreign order is registered and modified in Arizona, Arizona becomes the state with the controlling order and continuing exclusive jurisdiction (CEJ). Interest accrues at the annual rate of ten percent effective the date of modification.
13. Interest owed to a CP may be credited, other than by court order, by a signed affidavit of direct payment or waiver of support arrears signed by the CP.

If the above criteria are not met, interest does not accrue on the support obligation.

5. PROCEDURE

1. This policy is supported by staff procedures, which identify how action related to this policy will be conducted, including responsibilities, time frames, and required actions.

6. AUTHORITY

State Authority
A.R.S. § 25-510	Receiving and disbursing support and maintenance monies; interest
Arizona Administrative Code R6-7-714	Interest on Arrears

Return to beginning of the Debt Interest Policy

Policy Revision Date: 02/19/2021

Policy Review Date:

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