State Child Support Agencies with Debt Compromise Policies

Publication Date: June 2, 2023
Current as of:

OCSS found that at least 36 states and the District of Columbia have debt compromise options available to noncustodial parents.  Although the approach varies from state to state, each has the same goal to encourage consistent payments and foster better family relationships. 

Please check with the state in which you have your child support order for additional information. See our map for contact information for each state.

Federated States of Micronesia Federated States of Micronesia

Republic of the Marshall Islands Republic of the Marshall Islands

Republic of Palau Republic of Palau

State Data

Alabama

An interest rebate law allows for forgiveness of interest owed to the state and custodial parent (if the custodial parent agrees), in cases where current support is paid consistently for at least 12 months.

Source: Code of Alabama §30-3-6.1

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Alaska

The state offers debt forgiveness for noncustodial parents who have accrued at least $1,500 in state-owed child support arrears and meets other eligibility criteria. If the parent complies with the arrears forgiveness agreement, state-owed debt will be forgiven in stages over a 6-year period.

Source: 15 AAC 125.650

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Arizona

The Division of Child Support Services (DCSS) Settlement Program assists noncustodial parents who may have a large arrears balance on their child support case. It provides an opportunity to pay off past-due balances.

If you are limited in your ability to pay, you may offer to settle your arrears balance by paying either a lump sum or by making monthly installments that can be accepted for up to three months.

To participate in the program:

  1. Think about how much you would like to offer to settle the past due amount.
  2. Stop by a local DCSS office or contact the DCSS Customer Service Center at 602-252-4045 or 1-800-882-4151, or email the DCSS Settlement Team at dcsssettlement@azdes.gov to submit your settlement offer.

Note: The state’s role is not to advocate the amount of the settlement, but to facilitate whatever offer is appropriate for the state and the parties involved in the case. The DCSS cannot require a custodial parent to accept a settlement offer.

Source:  Arizona Parents who Pay Child Support

 

 

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Arkansas

Does not have a program.

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California

The California Department of Child Support Services’ Debt Reduction Program aims to increase support collected for families and resolve uncollectable debt that is owed to the state of California. The Debt Reduction Program allows for the acceptance of a partial-pay offer in exchange for compromising the remainder of permanently assigned arrears owed by a participant.

Source: Child Support Reduction Program

 

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Colorado

County child support offices have the ability to offer arrears compromise for assigned child support arrears. It is up to the counties to determine if they want to implement an arrears compromise program and, if so, what criteria they wish to use.

Source: State

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Connecticut

Connecticut has implemented two arrears programs. The first one, the Arrears Adjustment Program, is designed to reduce state-owed debt as well as encourage the positive involvement of NCPs in the lives of their children and to pay current support. The second program, the Arrears Liquidation Program, is designed to liquidate state-owed arrears by allowing obligors to pay off arrears in a lump-sum payment at a discounted rate.

Source: Regulations of Connecticut State Agencies §17b-179b-1 to §17b-179b-4

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Delaware

Does not have a program. 

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District of Columbia

The Fresh Start program allows for a portion of Temporary Assistance for Needy Families (TANF) arrears to be forgiven in return for successfully making consecutive timely payments on the current support obligation or making a lump sum payment towards arrears. The Child Support Services Division must invite noncustodial parents to participate in the program.

Qualifications are:

  • At least $1,000 owed in TANF arrears
  • No voluntary payment in at least 12 months
  • Previous unsuccessful enforcement efforts
  • Valid addresses for both parties
  • Failure to pay support must not be due to bad faith
  • Responding interstate cases are not eligible for the program

Source: District of Columbia Fresh Start Program

 

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Florida

Does not have a program.

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Georgia

A state statute gives the child support program the authority to waive, reduce, or negotiate the payment of state-owed arrears for administrative child support orders if it is determined that there is good cause for nonpayment or that enforcement would result in substantial and unreasonable hardship to the parent or parents responsible for the support. Courts have discretion in applying or waiving past-due interest owed on arrears.

 

Source: O.C.G.A. § 19-11-5, § 7-4-12.1; Ga. Comp. R. & Regs. r. 290-7-1-.20

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Hawaii

Does not have a program.

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Idaho

Does not have a program.

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Illinois

Project Clean Slate provides opportunities for low‐income noncustodial parents to apply for forgiveness of assigned arrears in exchange for making regular, ordered payments of current support to the custodial parent for six months. The noncustodial parent must have demonstrated that they were unable to pay the assigned support at the time it was owed due to unemployment, incarceration, or serious illness. The noncustodial parent must also meet low‐income standards.

 

Source: Clean Slate Program ; Illinois Public Aid Code §5/10-17.12; 89 Illinois Administrative Code Section 160.64.

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Indiana

Does not have a program.

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Iowa

The Promoting Opportunities for Parents Program assists parents in overcoming the barriers which interfere with fulfilling their obligations to their children. In order to encourage parent participation, Iowa’s Child Support Recovery Unit may partner with community providers and resources and offer incentives. The incentives include satisfactions of arrears due to the state for payment of court-ordered child support.

Source: Iowa CSRU Customer Handbook

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Kansas

The updated incentive program returned January 1, 2021, with an effective date of September 1, 2020. The focus of the updated incentive program is to work with payors to achieve stable employment. The primary incentive remains: a reduction of state-owed arrears only, with a lifetime maximum of $2500 and an additional incentive of $1000 for those payors who complete their GED or high school diploma. So, the lifetime maximum for those who obtain a GED is $3500.

There are three different categories in the incentives: 
1) Career enhancement: Enables a payor to progress in their career, $2000 cap (HVAC certificate, barbershop or cosmetology license, forklift driver certificate, etc.)

2) Education: $1000 cap (GED or high school equivalent)

3) Personal enhancement: $500 cap (fatherhood or parenting class, finance class, addiction class, etc.)

The incentives are capped by their category. For example, the completion of an addiction class and a financial class will only result in one $500 incentive. Completion of both the HVAC and Welding certificate programs will only result in one $2000 incentive. In addition, if a payor has already received the maximum amount under prior versions of the incentive program, they will not receive additional incentives. If, however, a payor only received $500 previously, they could be eligible for additional incentives under this program.

Beginning January 1, 2021, all incentives program requests with their appropriate documentation (certificates of completion, attendance logs, etc.) must be sent to DCF.CSSIncentives@ks.gov  for consideration and approval of credit.

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Kentucky

Does not have a program.

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Louisiana

Does not have a program.

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Maine

Does not have a formal program. The state considers debt forgiveness on a case-by-case basis only for assigned arrears. Factors considered are:

  • Ability to pay (present and future)
  • Partial or continuing payments for current or partial debt
  • Reduction in state owed arrears
  • Potential case closure

 

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Maryland

The Payment Incentive Program encourages the noncustodial parent to make consistent child support payments by:

  • Reducing state-owed arrears by half if the noncustodial parent makes full child support payments for a year.
  • Eliminating the balance owed if the noncustodial parent makes full child support payments for two years.

The noncustodial parent will receive credit for uninterrupted court-ordered payments made immediately prior to participation in the program. Consideration will be given for periods of unemployment due to seasonal work and no-fault termination.

Source: Maryland Payment Incentive Program

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Massachusetts

Massachusetts child support regulations allow for the settlement of interest, penalties, and arrears, as well as equitable adjustment of arrears. The Child Support Commissioner may waive all or a portion of the interest and penalties owed to the Commonwealth if the Commissioner determines such waiver is in the best interest of the Commonwealth and will maximize collection of current and past‐due child support.

 

The Commissioner may also accept an offer in settlement that is less than the full amount of state‐owed arrears, where there is serious doubt as to liability or collectability of such arrearages. The Commissioner may also equitably adjust the amount of child support arrearages owed to the Commonwealth when the obligor has no present or future ability to pay the full arrearages.

Source: 830 CMR 119.A.6.2

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Michigan

Several laws allow for adjustment of arrears and interest.

  • In some cases, the Department of Human Services or its designee may use discretion to settle and compromise state-owed arrears (MCL 205.13).
  • Other laws allow noncustodial parents who do not have the ability to pay the arrearage in full, presently, or in the near future to request a payment plan (for a minimum of 24 months). At the completion of the payment plan, the court may waive any remaining arrears owed to the state (MCL 552.605e).
  • Additionally, noncustodial parents may request a payment plan as a means to have the surcharge (interest) waived or reduced if regular payments are made (MCL 552.603d).

Source: MCL 205.13 , MCL 552.605e , MCL 552.603d

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Minnesota

State statute gives the parties (including the public authority with assigned arrears) the authority to compromise unpaid support debts or arrearages owed by one party to another, whether or not docketed as a judgment.

Source: Minn. Stat. §518A.62 

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Mississippi

Does not have a program.

 

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Missouri

Does not have a program.

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Montana

Does not have a program.

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Nebraska

Does not have a program.

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Nevada

Nevada will only consider arrears-only cases where there is no money owed to the custodian. The noncustodial parent must apply and provide supporting documents. Each application is reviewed, and a recommendation is provided to the Administrator of the Division of Welfare and Support Services who has authority to forgive state debt.

Source: State

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New Hampshire

The New Hampshire Division of Child Support Services does not have a formal debt compromise policy. Child support workers do have some discretion to negotiate agreements to secure current support that may include forgiveness of assistance debt owed to the state that accrued prior to the establishment of a child support order and which was based on imputed income. Any such agreement must be approved by the child support worker’s supervisor. Check with the state for more information.

Source: State

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New Jersey

Occasionally, the New Jersey Child Support Program will offer a time-limited match on payments made towards the child support case and credit the same amount towards the arrears balance owed to the state. The program is announced yearly and is based on availability of funds.

Source: New Jersey Arrears Match Program

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New Mexico

New Mexico’s Child Support Arrears Management Program, Fresh Start, supports the needs of today’s modern family by reviewing cases to focus on right-sized court orders, resulting in more payments and less debt.  This program may provide an option for the noncustodial parent to reduce the amount of assigned arrears by providing a lumpsum payment or consistent monthly payments to the custodial parent. To be eligible, the noncustodial parent must have over $1,000 of state-owed arrears and meet other additional criteria outlined on the Fresh Start Arrears Management Program .

Source: State

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New York

New York State offers several debt compromise programs to noncustodial parents who owe the state. The program varies depending on the local district. Interested persons must confirm with the local district where their order was issued if the service is available.

  • Arrears Cap: a limit on the amount of child support debt owed to the government.
  • Arrears Credit Program: open to noncustodial parents who owe Department of Social Services child support arrears and do not have more than $3,000 in the bank or more than $5,000 in property.
  • Parent Success Program: designed to help noncustodial parents by supporting their well-being and strengthening their ability to provide for their children by completing a substance-use treatment program.
  • Pay It Off: a time-limited program that enables noncustodial parents to pay off NYC DSS child support debt twice as fast. See the website for more information about each program.

Source: New York Debt Reduction

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North Carolina

To be eligible the obligor must:

  • Owe a minimum of $15,000 in state‐owed arrears
  • Agree to make 24 consecutive monthly payments for current support and an amount toward arrears
  • Comply with the agreement.

Source:  NC General Statute, Chapter 110, Section 135 (§ 110-135)  (PDF)

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North Dakota

North Dakota has three goals for its debt compromise program:

  1. Motivate obligors to comply with long-term payment plan 
  2. Eliminate uncollectible debt
  3. Facilitate case closure where appropriate

Compromise of assigned arrears is permitted if an offer is received for at least 95% of the outstanding arrears balance (after subtracting all negotiable interest) or 90% with IV-D Director approval.

Interest may be compromised when an obligor enters into a payment plan to avoid license suspension or other enforcement remedies or when an obligor has been making payments on a regular basis.

In both cases, interest is not charged while regular payments are made and, after one year of regular payments, any unpaid interest that had accrued before that date can be compromised.

Interest can also be considered uncollectible under certain circumstances. Some situations are pre-approved, such as an obligor is receiving Supplemental Security Income. In these cases, a worker may prevent interest from accruing on the case and can request an adjustment to the payment record for any unpaid interest that has already accrued.

In situations that are not pre-approved, the worker cannot suspend interest or have it waived as uncollectible without IV-D Director approval.

Source: State

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Ohio

Permanently assigned arrears can be reduced if/ when the obligor satisfies all the terms and conditions of a waiver, installment plan compromise, lump sum compromise, or a family support program.

Source: Ohio Administrative Code: Rule 5101:12-60-70

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Oklahoma

The state permits a waiver of some or all child support arrears with court approval, provided the parents mutually agree (or the state agrees when the debt is owed to the state).

Settlements of past support may include an agreement that the noncustodial parent make a lump-sum partial payment or a series of payments toward the total amount of past support.

Settlements also may include an agreement for the noncustodial parent to pay a specified number of current child support payments or in-kind payments in the future.

In addition, the state has established an amnesty program for accrued interest owed to the state. The state attorney in the local district must approve all settlements of state-owed interest. 

Source: 43 O.S. §112 Oklahoma Administrative Code 340:25-5-140 56 O.S. §234 

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Oregon

The Oregon Child Support Program/ Division of Child Support does not have a formal program, but forgiveness is used in appropriate situations. The program considers the family’s best interest and may satisfy all or any portion of child support arrears that are assigned to the State of Oregon or to any other jurisdiction if:

  • The arrears are a substantial hardship to the paying parent
  • A compromise will result in greater collections on the case; or
  • The paying parent enters into an agreement with the program to enhance the parent’s ability to pay or their relationship with the children for whom the parent owes arrears.

Source: OAR Rule 137-055-6120

 

 

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Pennsylvania

Per Pennsylvania Supreme Court Rule, any compromise of state-owed debt must be approved by the court.

Source: State

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Rhode Island

The Office of Child Support Services has the discretion to compromise state-owed arrears.

Source: State

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South Carolina

Does not have a program.

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South Dakota

South Dakota Division of Child Support (DCS) does not have a formal debt compromise policy.

Child support workers do have some discretion to negotiate a lump sum settlement of 75% of state-owed arrears. If the parents agree to a lump sum settlement for arrears owed to the family, DCS has a forgiveness of arrears form, which the parties can sign. The form is submitted to the court for approval. If the court approves the settlement, DCS will remove the arrears from the case.

Source: State

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Tennessee

With the approval of the court, the parties have the right to compromise and settle child support arrears owed directly to the person owed support (family-owed arrears). State-owed debt cannot be forgiven.

Source: Public Chapter 200, amending Tennessee Code Annotated, Section 36-5-101(f)  (PDF)

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Texas

The child support agency may establish and administer a payment incentive program to promote payment by noncustodial parents who are delinquent in satisfying child support arrearages assigned to the child support agency under Section 231.104(a).

The program must provide to a participating noncustodial parent a credit for every dollar amount paid on interest and arrearage balances during each month of the NCP’s voluntary enrollment in the program.

Source: Texas Family Code 231.124

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Utah

The Prisoner Forgiveness Program targets recently released prisoners and forgives state‐owed arrears for those who are approved for the program and pay 12 consecutive months of current support plus a nominal amount toward arrears.

Utah also targets obligors in treatment programs and forgives state‐owed arrears for those who are approved for the program and pay 12 consecutive months of current support and/or arrears.

Source: UT Admin. Code Rule R527‐258

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Vermont

The court may limit the child support debt, taking into consideration the criteria of 15 V.S.A. § 659.

 

Source: 33 VSA §3903

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Virginia

The Division of Child Support Enforcement's Temporary Assistance for Needy Families (TANF) Debt Compromise Program is available to parents who owe TANF debt under a Virginia court or administrative order.

The program is designed to encourage consistent child support payments by offering eligible parents a debt reduction in TANF debt. There are three tiers of participation based on your ability to pay. For more information on how much you may be eligible to save, call 800-468-8894 or visit your local district office.

Source: State Child Support TANF Debt

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Washington

The Child Support Department may accept offers of compromise of disputed claims and may grant partial or total charge-off of support arrears owed to the state.

The state established an administrative dispute resolution process through its Child Support Conference Boards to hear parents’ request to reduce the amount of arrears and make determinations based on the individual circumstances.

Source: Rev. Code of Washington 74.20A.220 , Washington Admin. Code 388-14A-6400 through 388-14A-6415

Washington Child Support Conference Boards  (PDF)

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West Virginia

This program allows forgiveness of interest for obligors who pay off all arrears within 5 years/60 months. This is a voluntary program and requires all parties to voluntarily agree to forgive the interest.

Source: West Virginia Code §48‐1‐302 (c)

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Wisconsin

Local child support agencies may forgive all or part of the state-owed arrears under a variety of circumstances, including when the obligor is unable to pay the arrearage based on income, earning capacity, and assets, or the obligor has a long-term disability.

Source: Child Support Bulletin # CSB 20-06

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Wyoming

Does not have a program.

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Puerto Rico

Does not have a program.

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Virgin Islands

Does not have a program.

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American Samoa

Does not have a program.

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Commonwealth of the Northern Mariana Islands

Does not have a program.

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Guam

Does not have a program.

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Federated States of Micronesia

Does not have a program.

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Republic of the Marshall Islands

Does not have a program.

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Republic of Palau

Does not have a program.

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