Getting interest waived on child support arrearages

[jerlar61]

Jurisdiction

Nebraska

Monthly child support payments have not been required since approximately 2005. However, due to financial hardship myself, the amount of the arrearage is considerable. All payments were being collected by the Health & Human Services department as my ex-wife was on state assistance since the divorce until the children were grown. I was making monthly payments until recently when i was able to pay $8,346.00 of a $9,464 balance owed. A large portion of the arrearages was interest and the remaining amount of $1,100.00 is solely interest. Is there any way to get the balance of interest remaining on the child support debt waived? If so, how would i go about doing that? I contacted the state's child support department and was told they would settle for 85% of the balance. However, i am trying to buy my first home now and need to see if i can get this debt cleared and showing as paid in full. Paying another substantial amount of money on this isn't an option right now. I actually thought my payment of the majority of the arrearage would or could be considered as a settlement on the debt, but it is not.

 

[army judge]

What you're seeking is possible.
However, possible doesn't mean it will ever come to fruition.
For the interest/fees to be removed would most likely require a court order, and won't happen without considerable effort and time.
Time is, of course, money.
You'll have to do the math to determine what's attainable expediently.
Do you clear the debt quickly in order to achieve home ownership sooner, rather than later.

 

[adjusterjack]

I actually thought my payment of the majority of the arrearage would or could be considered as a settlement on the debt, but it is not.

I could have been had you negotiated a lump sum settlement agreement in writing before you paid. Once they got the money there was no more leverage and now you start from scratch in your negotiations.

Is there any way to get the balance of interest remaining on the child support debt waived? If so, how would i go about doing that? I contacted the state's child support department and was told they would settle for 85% of the balance.

You just answered your own question. You call up and offer a lump sum discounted settlement agreement. If you don't like the 85% response, offer less and see if they take it.

However, i am trying to buy my first home now and need to see if i can get this debt cleared and showing as paid in full. Paying another substantial amount of money on this isn't an option right now.

I don't see where you have any choice. Either pay it or the debt doesn't get cleared and you don't get your loan to buy the house.