Collecting Child Support From the Self-employed

1. The court can order the posting of a cash bond to ensure payment. The court order should state the date the non-payor is required to post the bond; the amount to be posted; the reason that money should be released from the bond; and a requirement that the child support agency is responsible for keeping the bond at the court ordered amount. This means they will be responsible for making the non-paying parent replace any payments that are deducted from the bond.

2. The court can order the business be placed in Receivership. The judge appoints a third party as the "Receiver" who is then responsible for conducting all financial transactions - taking in the money and paying the bills.

3. A special procedure is available through the IV-D Child Support Agency if children are under age 18. An IRS Full Collection can be used on cases with over $750.00 of back support owed. The IRS seizes all property and assets to sell to satisfy the unpaid child support. ACES recommends this procedure for the self-employed and out-of-state cases with an arrearage over $5,000. You need to:

a. Make sure you are a have an open case with your local child support agency.

b. Request an IRS Full Collection services in writing to your local, state and Federal Regional Office of Child Support Enforcement.

c. You must get approval from the local, state and federal child support offices.

d. IRS then handles the case the same way back taxes are collected, including shutting down a business, seizure of all property and jail terms.

UNDER THE TABLE EARNERS: those who receive pay in cash or through some hidden source

1. Credit Check - Your local government child support agency or private attorney can provide this service. Credit check could show hidden assets, ability to pay bills, loans, bank accounts.

2. If your state has a law for Criminal Non-support you can have your local County Attorney (Prosecutor, District Attorney or State's Attorney) file charges if your case qualifies. This cannot be used if non-payor receives welfare benefits. Requirements and punishments vary from state to state.

3. Contempt of court hearing can be held. The judge can order non-paying parent to seek work and report to the court with proof that he/she is seeking employment. If non-paying parent fails to provide proof, he/she can then be sent to jail after the second contempt hearing is held to show non-paying parent did not seek work.

If You Have a Judgment for Back Support:

1. Obtain a judgment for back child support through a court proceeding. A IV-D attorney or a private attorney can represent you at the hearing or you can represent yourself (pro se). You should request that the judgment include interest on arrears. A judgment is a term which means that a person owes a specific amount of money to another person.

2. The judgment must then be executed through one of the following methods:

LIENS

1. Perfect the lien - file the judgment with Clerk of Courts (usually a small fee). You could do it yourself or a IV-D attorney can do it for you. A lien that is placed on property means that the property can not be sold or change title until the judgment award amount is paid to you.

2. The duration of a lien varies from state to state. For example, if you place a lien on a house and do not foreclose, you may have to renew the lien every 5-10 years or it will be renewed removed from the property. Contact the Clerk of Courts in the county where the lien is filed to find out the procedure.

3. Priority status of a lien: Usually the first lien gets the first money, 2nd lien gets 2nd money, etc.

4. Property you can place on liens includes:

a. Real property - home, land.

b. Personal property - jewelry, art work, coin collections, etc.

c. Motor vehicles usually must be worth more than $1,000.

d. Boats, motorcycles and recreational vehicles.

Enforcement of liens: Laws vary from state to state. You will probably need an attorney to enforce the lien. The Child Support Agency (IV-D) attorney can assist you to do this. Re: Federal Law P.L. 98-378.

Other Methods of Enforcement:

1. Writ of Execution (fieri facias) (Levy). The sheriff seizes the property and it is placed for public sale. The cost of court fees and appraisal should be taken off the monies collected. The remainder of funds should go towards your back child support.

2. Garnishment (Writ of Garnishment): The Non-payor is notified and if no defense is presented, the employer is notified and wages are taken. A new garnishment must be done each time a paycheck is received to collect the back support. This method is suggested for bonuses and commissions. This is not the same as an income withholding.

3. Creditors' bill: This forces the non-paying parent to turn over assets to the court for child support debt.

4. Foreclosure: Forced sale of real or personal property.

How to Collect Child Support
Child support enforcement