Settlement Program Policy

DCSS-POL-08-18 v.3

 

  1. OVERVIEW
  1. The purpose of this policy is to provide staff and members of the public a working knowledge of the Settlement Program. This is a voluntary program that allows noncustodial parents (NCP) to settle an arrears balance with the Division of Child Support Services (DCSS). A settlement offer occurs when an NCP contacts the DCSS and offers to pay an amount less than the total amount of arrears owed, principal, interest and fees.
  1. APPLICABILITY
  1. This policy applies to all Arizona IV-D program staff performing Title IV-D services.
  1. POLICY
  1. The DCSS may act as the liaison of the department to compromise or settle a child support debt owed to the agency when the Settlement Team determines it is the best interest of the state.
  1. CRITERIA
  1. An open IV-D case shall be reviewed for the Settlement Program when the following exist:
  1. A current child support obligation with an arrears balance or an arrears only case
  2. A child support arrears balance including principal, interest, and fees owed to:
  3. The state and the custodial parent (CP)
  4. The CP only
  5. The state when:
  1. Only state assigned arrears exist
  2. The CP is deceased
  1. An NCP shall have a verified ability to pay the arrears and non-negotiable debt excluding state and/or federal tax refund offset monies.
  2. The arrears debt shall be settled as a whole debt.
  3. Case(s) shall have an approved debt calculation to ensure settlements are based on a defensible debt balance.
  4. The best interest of the state shall be met when settling on arrears owed to the State after considering:
  1. The NCP’s financial resources
  2. Cost of further enforcement action
  3. The likelihood of recovering the full amount of the debt
  1. A CP will be given an opportunity to accept, counter, or decline an NCP’s offer to settle the arrears when arrears are owed to the CP.
  2. The DCSS shall not negotiate, settle, or collect on the portion owed to the State when the CP declines the NCP’s offer or participation in the Settlement Program.
  3. A settlement agreement to compromise on the arrears debt between parties shall become binding when:
  1. The offer terms are acceptable to the State and NCP or the State, CP, and NCP
  2. The DCSS is in receipt of the Settlement Agreement signed by the parties
  3. The NCP has made the lump sum payment or completed the payment schedule as agreed to in the Settlement Agreement
  1. If all criteria are not met, settlement negotiations and/or agreement shall not be completed.
  1. 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.
  2. Staff may access the Settlement Program procedures here
  1. AUTHORITY
Federal Authority
45 CFR § 303.72(h) Requests for collection of past-due support by Federal tax refund offset.
O.C.S.E. PIQ-99-03 Policy Supporting Two Parent Families/Compromise of Arrearages
State Authority
A.R.S. § 25-508 Enforcement of support orders; fee prohibition
A.R.S. § 25-510 Receiving an disbursing support and maintenance monies; arrearages; interest
A.R.S. § 25-514 Priority of actions and judgments
A.R.S. § 25-516 Lien; priority; recording; information statement; payoff amount; release
A.R.S. § 45-1954(M) Powers and duties
Arizona Administrative Code R6-7-604 Allocation of Other Than Internal Revenue Service Payments to Multiple Obligees

Rule 69, Arizona Rules of Family Law Procedure

Binding Agreements; Presumption of Validity

Return to beginning of the Settlement Program Policy

Policy Revision Date: 2/9/2023
Policy Review Date: 12/30/2022

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