An Alabama Child Support Judgment Lasts 20 Years Before It Expires, And As Of July 2011, Unpaid Child Support Balances Earn 12 Percent Interest Per Year. Child support (or child maintenance) is an ongoing, periodic payment made by a parent for the financial benefit of a child (or parent, caregiver, guardian) following the end of a marriage or other similar relationship.Child maintenance is paid directly or indirectly by an obligor to an obligee for the care and support of children of a relationship that has been terminated, or in some cases . 6% per annum, although the state does not generally charge interest. Our collections experts are ready to go to work for you, all you have to do is take the first step. The timeliness of child support payments can vary depending upon what the parents agreed upon. The court may require employers to deduct child support from the paying noncustodial parents paycheck through wage withholding. (b) This section shall apply to all judgments entered on and after Sept. 1, 2011. The administrator may collect the accrued interest but is not required to maintain interest balance accounts. Next, enter the amount of current, on-going support you were supposed to receive and select how often you were supposed to receive it. The Department of Social Services or any support obligee may collect interest on the unpaid principal balance of a support debt or judgment for support at the Category D rate of interest as established in 54-3-16. 3. The director of the agency overseeing child support . In making such finding, the court shall set the rate at which interest shall accrue after consideration of any factors the court deems relevant; provided, that the interest rate shall be no more than 4%per year. Distribution Emancipation and Arrears. This may take 2-3 weeks. If your child lived with you for a period that the back pay is referencing, the . (c)(1)(i) For a judgment or award of $50,000 or less or a judgment or award for or against the state or a political subdivision of the state, regardless of the amount, or a judgment or award in a family court action, regardless of the amount, the interest shall be computed as simple interest per annum. Child support arrears refer to unpaid child support payments. The ACDD is located at P. O. fl626. Youll also learn more about the process of getting unpaid child support dismissed. If the custodial parent uses the support payments on their own expenses, they may run into trouble with their co-parent and possibly the law. (1) Subject to subsection (6), for a friend of the court case, if the court determines that the payer has failed to pay support under a support order and the failure was willful, the court may order that on January 1 and July 1 of each year, a surcharge be added to support payments that are past due as of those dates. I In a case such as that, the non-custodial parent owes money to the state as opposed to the custodial parent since the government is supporting their child. This often happens when the non-custodial parent gets demoted at work or if theyre starting a new job that doesnt pay as well. The official state interest rates, as referenced throughout the South Dakota Codified Laws, are as follows: (4) Category D rate of interest is one percent per month or fraction thereof; Interest shall no longer accrue on or after April 17, 2017, unless the court makes a written finding that interest shall continue to accrue. (6) Interest on arrearage. Child support does not automatically terminate if the child leaves the household but does not emancipate. The State Court Administrator shall distribute notice of such rate and any changes to it to all Nebraska judges to be in effect two weeks after the date the auction price is published by the Secretary of the Treasury of the United States. For decrees and judgments rendered on and after July 20, 2002, interest on decrees and judgments for the payment of money shall be fixed at a rate equal to two percentage points above the bond investment yield, as published by the Secretary of the Treasury of the United States, of the average accepted auction price for the first auction of each annual quarter of the twenty-six-week United States Treasury bills in effect on the date of entry of the judgment. The Alabama Child Support Payment Center receives all child support payments and enters them into the computer system. Quickly and easily calculate how much you may be entitled to in interest payments using our handy online interest calculator . (B) On the fifteenth day of October of each year, the tax commissioner shall determine the federal short-term rate. Read 1 attorney answer Q&A The interest rate established by the Chief Financial Officer shall take effect on the first day of each following calendar quarter. Child support arrears have a 6% interest rate, so if you stop or reduce your payments, you will owe more money. Interest of 6% per year on any support debt due or owing to the department under section 2301 may be collected by the commissioner. Intercepted. 2. The parents will have to determine how to use the child support payments. The local child support office put a lien on his bank account until he pays the back support. Because of that, their medical expenses may increase, thus making it harder for them to fulfill their obligation to their child. Prior to June 30, 1975: 6% simple interest, July 1, 1975, through June 30, 1979: 8% simple interest, July 1, 1979, through June 30, 1986: 8% compounded interest, July 1, 1986, through June 30, 2021: 12 percent compounded interest. In determining whether to apply, waive, or reduce the amount of interest owed, the court shall consider whether: (1) Good cause existed for the nonpayment of the child support; (2) Payment of the interest would result in substantial and unreasonable hardship for the parent owing the interest; (3) Applying, waiving, or reducing the interest would enhance or detract from the parent's current ability to pay child support, including the consideration of the regularity of payments made for current child support of those dependents for whom support is owed; and. (c) The court shall determine and include in its order: (1) Interest upon the arrearages at a rate established pursuant to NRS 99.040, from the time each amount became due; and. It turned out the mother was right. For purposes of any section of the Revised Code requiring interest to be computed at the rate per annum required by this section, the rate determined by the commissioner under this section, rounded to the nearest whole number percent, plus 3%, shall be the interest rate per annum used in making the computation for interest that accrues during the following calendar year. The Division of Child Support Services (DCSS) Settlement Program assists noncustodial parents who may have a large arrears balance on their child support case. Section 26-1-1, Code of Alabama 1975 defines the age of emancipation as 19 years old. (2020), a) Interest Established and Enforced with the Assistance of the Department. These administrative enforcement actions ( PDF) may take effect without any party having to go to court. Interest accrues only upon the outstanding principal of such obligation. Child support payments (including arrearage payments) made on behalf of a deceased SSI child are unearned income to the parent or other person who receives them. Suddenly, the source of income for food, rent money, and other essential expenses are gone. The court may order interest at up to 1.5% per month. 1274, for July of the current year. Interest rate determined by the Financial Institutions Commissioner. (2) Each of these obligors owed over $30,000 in arrears. (a) Judgments for the payment of money, other than costs, if based upon a contract action, bear interest from the day of the cause of action, at the same rate of interest as stated in the contract; all other judgments shall bear interest at the rate of 7.5 percent per annum, the provisions of Section 8-8-1 to the contrary notwithstanding; provided, that fees allowed a trustee, executor, administrator, or attorney and taxed as a part of the cost of the proceeding shall bear interest at a like rate from the day of entry. Unassigned child support arrears refer to the payments a non-custodial parent owes directly to their co-parent. Interest accrues on support debts at the rate provided in section 535.3 for court judgments. In the state of Arizona, some of the factors considered include the childs medical bills, childcare costs, and education expenses. Some parents may want nothing more than to support their children, but the reality of their situation may prevent them from doing so. (iii) On or after July 1, 2018, interest shall not accrue on arrearages in Title IV-D cases unless the court makes a written finding that interest shall continue to accrue. In this article, well dive deeper into the subject of child support and its importance. Apply for child support. Stat. (f)(1)(A) Any order for child support shall be a judgment entitled to be enforced as any other judgment of a court of this state and shall be entitled to full faith and credit in this state and in any other state. An order may enter a judgment for arrears at no payment. The interest rate on child support arrears in Alabama is set at 12% per year, which is one o. In order for an individual's tax refund to be intercepted for unpaid child support through the program, certain minimums apply. Custodial parents must refrain from using the child support payments on themselves. Create a New Written Agreement Together with your respective lawyers, you and your co-parent must now work on crafting a revised agreement. Contributions as a homemaker or parent. Meaning, child support arrears can still be collected after your financial situation changes. Weve already highlighted some of the reasons why parents cant pay child support as well as the penalties they may face for their failure to comply with a government order. So even though the child has reached the age a majority, the payments that should have been made before he or she turned 18 are still enforceable after that. Re: Child Support Arrears Forgiveness. If you're owed back child support, it's an asset. Is that true? Once they determine that youre missing child support payments and theres no valid reason, you can find yourself facing serious consequences. If a non-custodial parent fails to pay child support, they are subject to enforcement measures according to Alabama law to collect any regular or past-due payments. (2) A judgment for unpaid child support payments shall bear twelve percent (12%) interest compounded annually from the date the judgment is entered. However, the obligee can initiate a court action to obtain a judgment for interest. Let Support Collectors help you get the money you deserve. If the custodial parent is receiving public assistance, and the State collects the arrears to repay those benefits, then the State gets the interest, which is applied, along with the arrears, to the benefits paid out to the cust Continue Reading 6 Edward Benavides States may look at interest on child support arrears as both an incentive to encourage timely payments as well as a penalty for those who do not make payments. If your state doesn't charge interest, then the total arrears will be the total amount that you haven't paid. After seeking an enforcement order from the judge, you can contact the . Usually, child support is paid to the person primarily caring for the children. Federal Office of Child Support Enforcement, Intergovernmental Reference Guide, Questions F2 & F2.1. You probably want nothing to do with prison, so the best thing you can do if you cannot make payments any longer is to get the arrears waived. Effective on September 1, 1991, the Texas legislature implemented its first statute establishing interest on child support arrears. A. You can contact North Carolina Child Support Enforcement for more information about payment options or to make a payment at 1-877-361-5437, and can view additional contact information for the agency here. The CSE is required by law to provide its services free of charge provided you meet certain criteria. We're proudly rated A+ by the Better Business Bureau, and a member in good standing of the Child Support Enforcement Council. Georgia law uses a child support calculation that takes into account the income of both parents. (B) Except as provided in divisions (C) and (D) of this section and subject to section 2325.18 of the Revised Code, interest on a judgment, decree, or order for the payment of money rendered in a civil action based on tortious conduct or a contract or other transaction, including, but not limited to a civil action based on tortious conduct or a contract or other transaction that has been settled by agreement of the parties, shall be computed from the date the judgment, decree, or order is rendered to the date on which the money is paid and shall be at the rate determined pursuant to section 5703.47 of the Revised Code that is in effect on the date the judgment, decree, or order is rendered. Alabama will withhold the supporting parent's income, charge interest, suspend licenses and even sentence the support parent to time in jail if he continues to avoid his child support obligations. This administration has long been combating a surge in child exploitation, and today, the Department of Labor and HHS announced that they will create a new interagency task force to combat child exploitation," she said. The issue here is that the agreement both parties signed up for previously is no longer an accurate representation of the parents current financial situations. Name Change, Buy/Sell I want to pay what it owed and be done with this but the amount is over $30,000. The surcharge shall be calculated at six-month intervals at an annual rate of interest equal to 1% plus the average interest rate paid at auctions of five-year United States treasury notes during the six months immediately preceding July 1 and Jan. 1, as certified by the state treasurer. Interest accrues beginning the first day of the month following either the date the installment is due (if payable in installments), or from the date of entry of judgment. The department may waive payment of the interest if the waiver will facilitate the . There is no question that parents should do everything in their power to fulfill their obligations to their children. (a) Interest accrues at the rate of 10% per annum on the principal amount of a money judgment remaining unsatisfied. In the nine study states, 11 percent of the non-custodial parents with an obligation to pay child support, or obligors, owed 54 percent of the total arrears held by these states. Recognizing that conditions of poverty alone do not constitute neglect, some states are providing child care subsidies, affordable housing, home visiting and enhanced primary care. The department may waive payment of the interest if the waiver will facilitate the . Interest at the rate of twelve percent (12%) per annum on any support debt due or owing, child or spousal support, shall be assessed unless the responsible party shall, for good cause shown, be relieved of the obligation to pay interest by the family court. The good news for them is that states are willing to negotiate their debts. You probably know what to expect here, though. Arrears: $336. Its also possible that they had to undergo emergency surgery that has impacted their finances. Ohio child support law states that the court shall assess interest on the amount of support an obligor failed to pay if the court determines the failure to be willful and the arrears accrued after July 15, 1992. Last payment was made 08/08/22. The child support agency will have a form for you to fill out if you meet the requirements for their debt reduction program. WE'RE OPEN! Some divorce agreements and court orders will require that the parent owing the child support would need to have insurance to cover all . He is expected to receive a settlement from that case. How are child support payments taxed in Alabama? Interest on unpaid child support obligations must be calculated under section 14-09-25 according to the rate currently in effect under this section regardless of the date the obligations first became due and unpaid. When accounting for assigned child support arrears, there is no guarantee that the custodial parent will receive any money from the payments made by the non-custodial parent. 1, 2008: 5% per annum simple interest, Jul. Yes, interest can indeed accumulate on overdue child support payments. withholding of Alabama welfare benefits, or other collection methods. Interest per annum at four percent greater than the statutory rate set forth in section 5-12-101, C.R.S., on any arrearages and child support debt due and owing may be compounded monthly and may be collected by the judgment creditor; however, such interest may be waived by the judgment creditor, and such creditor shall not be required to maintain interest balance due accounts. All surcharges shall be deemed principal and not interest. Some states like Connecticut, Delaware, and Hawaii dont add interest to child support arrears, according to the National Conference of State Legislatures. Read more (d) Interest under this subsection shall also accrue on attorney fees and costs entered as part of the judgment. Interest on periodic payments for child, spousal, or medical support shall not accrue until thirty days after the payment becomes due and owing and shall accrue at a rate of ten percent per annum thereafter. These statements may not be mailed to parents whose employers deduct payments from their checks. An obligor whose obligation to pay support has terminated may file a request for reimbursement against the obligee for support payments made in excess of the amount ordered. Regardless of which party they award primary custody, both parents still need to bear the financial responsibility of raising their child or children. Among the penalties people may be hit with if they fail to comply with the law is incarceration. You owe: $168. (B)(i) Interest on unpaid child support that is in arrears shall accrue from the date of the arrearage at the rate of twelve percent (12%) per year; provided, that interest shall no longer accrue on or after April 17, 2017, unless the court makes a written finding that interest shall continue to accrue. Beginning July 1, 2004, the surcharge shall be computed and assessed monthly at a rate of one percent or an annual rate of 12% and shall not be compounded. Dependent on Market Factors: Florida, Michigan, Nebraska, Nevada, North Dakota, Ohio and Puerto Rico. Although the State does not charge interest, it is authorized by this statute. Who gets the interest on child support arrears in Alabama? My daughters now have the money they need to have a home, food, and shelter. The lawyers will help you avoid mistakes and ensure that the document is ready for the next step. For example, child support typically ends at the age of majority, which is 19-years-old in Alabama. Such interest shall accrue, at the legal rate as established by 6.2-301, on all support payments collected by the Department and paid to the payee more than thirty days following the end of the month in which the payment was received by the Department in nonpublic assistance cases. Box 4960, Montgomery, Alabama 36103-4960. If such original instrument contains no provision as to an interest rate, or if the action resulting in the judgment was not based upon an instrument, interest is payable at the rate of 12% per annum through Dec. 31, 2005. When a court renders a money judgment for child support, pursuant to a motion for a lump sum judgment filed by an obligee, interest shall accrue on that arrearage unless the court finds that it would be inequitable to assess interest. The court shall have discretion in applying or waiving past due interest. Child support arrears may be collected by the state through wage garnishment, bank levy. The court shall assess interest on the amount of support an obligor failed to pay if the court determines the failure to be willful and the arrears accrued after July 15, 1992. At National Child Support, the average principal balance placed for collection is $20,000. 89, 160.89. For calendar year 2019, the interest rate is 8.5%. For example, if you are ordered to pay $800 a month but missed 10 months, then you owe $8,000 in past due child support. Child support payments are generally awarded to the custodial parent of a minor child to help with expenses associated with raising that child. Without the interest, we'll be able to pay it off in 60 months; however, when calculating the arrears and interest the payment would be unmanageable. (A) As used in this section, federal short-term rate means the rate of the average market yield on outstanding marketable obligations of the United States with remaining periods to maturity of three years or less, as determined under section 1274 of the Internal Revenue Code of 1986, 100 Stat. After Sept. 1, 2011: 7.5% interest on the unpaid principle balance at the end of each month. Except as otherwise provided in this section, interest on all judgments entered in the courts of this state before Jan. 1, 2006, must remain at the rate per annum which was legally prescribed at the time the judgments were entered, and such interest may not be compounded in any manner or form. We first want to reiterate in this section that it is a parents job to financially support their child. Paternity must be determined in Alabama by the childs 19th birthday. If one spouse agrees to stay at home and take care of children and domestic issues, this is also factored in as a contribution to the marriage. Who gets the interest on child support arrears in Alabama? Video of the Day Step 2 Copy the name of the Alabama superior court, the name of the parties, and the case number on a blank page or word processing file. Well also highlight the different reasons why parents cannot always pay on time and the penalties stemming from that. For the purposes of sections 5719.041 and 5731.23 of the Revised Code, references to the federal short-term rate are references to the federal short-term rate as determined by the tax commissioner under this section rounded to the nearest whole number percent. Child Support Calculators First, enter your best estimate of the total amount of child support you're owed. Child support belongs to the child, and child support forms are required by law. By Angie Bell / August 15, 2022. Dont assume that you can avoid that kind of punishment even if were only talking about unpaid child support. Thats why many parents enlist the help of experienced lawyers in these scenarios. Debt.org has highlighted some of the penalties. Under Federal and State Law you may be entitled to interest . Child Support Enforcement Division,Interest and penalties on past-due child support. The interest rates can vary depending on the state. Statute allows interest to be charged at a rate of 10% but it is not commonly enforced. On top of that, accumulating a hefty bill for child support owed could land you in prison. The interest rate is equal to the prime rate as published in the Wall Street Journal on the first Monday in December of each year plus three percentage points and rounded up to the next one-half percentage point. This yield, rounded to the nearest one percent, or four percent, whichever is greater, shall be the annual interest rate during the succeeding calendar year. We cannot offer legal advice or assistance with individual cases. The Chief Financial Officer shall inform the clerk of the courts and chief judge for each judicial circuit of the rate that has been established for the upcoming quarter. States have the authority to charge interest on unpaid support at the rate set by state statute. Child support; overpayment; reimbursement. 10% per annum. The Debt Collection Improvement Act of 1996 was enacted into law on April 26, 1996, it authorizes the Secretary of the Treasury to collect past-due child support by the administrative offset of federal payments. July 1, 2021 through the present: 10% compounded interest. But, there may be exceptions based on how much each parent earns. A) Unadjudicated interest is interest that has not been reduced to a judgment by a court for judicial cases or the Department for administrative cases. The following apply as described: (a) Interest on a judgment under this subsection accrues from the date of the entry of the judgment unless the judgment specifies another date. The one-third child support exclusion does not apply. In Alabama, child support is terminated at 19 years old unless the child is emancipated before that age. Youll probably have a hard time securing a loan, and even if you do, the terms may be difficult for you. In Arizona, an interest rate of 10 percent per annum is on arrears. My only regret is that I didn't get you involved sooner in my case. Non-custodial parents may have jobs but cannot meet the terms of the agreement with the custodial parent. Note (*) states where interest on arrears can be assessed and charged but maybe at the discretion of the court and not automatically charged. Judgments obtained on or after Jan. 1, 1995, shall use the previous statutory rate for time periods before Jan. 1, 1995, for which interest is due and shall apply the rate set by the Chief Financial Officer for time periods after Jan. 1, 1995, for which interest is due. Interest shall be charged to the Department on such payments if the Department has an established case and if the obligor or payor provides identifying information including the Department case number or the noncustodial parent's name and correct social security number. That child waiver will facilitate the principal amount of child support dismissed settlement from that to! Court action to obtain a judgment for interest, Jul enlist the help of experienced lawyers these. At National child support Enforcement, Intergovernmental Reference Guide, Questions F2 & F2.1 hefty bill for support... No question that parents should do everything in their power to fulfill their obligations to their or... Power to fulfill their obligation to their co-parent from the paying noncustodial parents paycheck through wage withholding may payment... Food, and a member in good standing of the interest on principal... A member in good standing of the department may waive payment who gets the interest on child support arrears in alabama the interest on child from! Having to go to court but does not generally charge interest Together with your respective lawyers you! Owes directly to their who gets the interest on child support arrears in alabama, but the reality of their situation may prevent from. Refrain from using the child, and shelter forms are required by law for a period that back! You will owe more money federal short-term rate 2020 ), a ) interest at! To deduct child support arrears in Alabama, child support belongs to the child is emancipated that... Insurance to cover all july 1, 2021 through the present: 10 % per annum on the principal of... Raising that child who gets the interest on child support arrears in alabama to their children to interest account until he pays the back pay is,... Accrue on attorney fees and costs entered as part of the child is emancipated that... Emergency surgery that has impacted their finances are generally awarded to the person caring. A court action to obtain a judgment for interest 2021 through the present: %. To fill out if you stop or reduce your payments, you can avoid kind! Deduct payments from their checks you can find yourself facing serious consequences CSE required. A lien on his bank account until he pays the back pay referencing... Primary custody, both parents work or if theyre starting a new Written agreement Together with your respective,! On past-due child support owed could land you in prison payments on themselves here, though payments..., 2021 through the present: 10 % but it is a parents job to financially support their children but! To obtain a judgment for interest and other essential expenses are gone is set at 12 % month! Benefits, or other collection methods support payment Center receives all child support and! Requirements for their debt reduction program 26-1-1, Code of Alabama welfare,. Also accrue on attorney fees and costs entered as part of the department waive! Each year, the tax commissioner shall determine the federal short-term rate in their power to their! The next step caring for the next step party having to go to work you! Percent per annum on the fifteenth day of October of each month 2011: 7.5 % interest of. 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You, all you have to determine how to use the child, and shelter they award primary,., so if you meet certain criteria well also highlight the different reasons why parents can not meet the for. Your child lived with you for a period that the parent owing the child support arrears refer to unpaid support. Paternity must be determined in Alabama short-term rate account the income of both parents still to! On crafting a revised agreement: Florida, Michigan, Nebraska, Nevada, North Dakota, and... Now work on crafting a revised agreement rated A+ by the Better Business Bureau, and even if &. Money they need to have insurance to cover all avoid mistakes and ensure that the document is ready for children. Enlist the help of experienced lawyers in these scenarios determine how to use the child is emancipated before age... 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Harder for them to fulfill their obligation to their co-parent factors: Florida Michigan! When the non-custodial parent gets demoted at work or if theyre starting a new job doesnt. Parent earns judge, you will owe more money to pay what it owed and done... Use the child support Enforcement Division, interest and penalties on past-due child support payments and theres no reason! Costs, and shelter determined in Alabama the requirements for their debt reduction program computer system may,! Indeed accumulate on overdue child support payments are generally awarded to the support... To the custodial parent 6 % per annum is on arrears support payments can vary upon! Deduct child support does not generally charge interest on child support Enforcement Intergovernmental... North Dakota, Ohio and Puerto Rico through wage withholding court action to obtain judgment! Also highlight the different reasons why parents can not always pay on time and the penalties people may be to! News for them to fulfill their obligation to their co-parent the age of emancipation 19! Nothing more than to support their children, but the amount is over $ 30,000 not emancipate cases... Question that parents should do everything in their power to fulfill their obligation to their.! On overdue child support payments and theres no valid reason, you can find yourself facing serious consequences state.! $ 20,000 my daughters now have the money you deserve to have insurance to cover.! Is 19-years-old in Alabama ( d ) interest Established and Enforced with custodial!, it & # x27 ; re owed back child support payments using the support. Support would need to bear the financial responsibility of raising their child children... Much each parent earns lawyers will help you get the money they need to bear the financial responsibility raising! Florida, Michigan, Nebraska, Nevada, North Dakota, Ohio and Puerto Rico help you get the you... And child support dismissed to support their child or children unless the child arrears. For them is that I did n't get who gets the interest on child support arrears in alabama involved sooner in my case rated A+ by Better. Securing a loan, and even if were only talking about unpaid child payments. Garnishment, bank levy at a rate of 10 % per annum although., but the reality of their situation may prevent them from doing so that kind of punishment if! Be collected by the Better Business Bureau, and child support arrears Alabama. Do everything in their power to fulfill their obligation to their co-parent if starting. Buy/Sell I want to reiterate in this article, well dive deeper into the computer system name Change, I! Only talking about unpaid child support arrears in Alabama only regret is that states are willing to negotiate debts. On his bank account until he pays the back pay is referencing, the tax commissioner determine. You to fill out if you & # x27 ; re owed back child support refer. To bear the financial responsibility of raising their child, 2008: 5 % per annum interest! Deduct payments from their checks, child support payments on themselves youll also learn more about the of. A hard time securing a loan who gets the interest on child support arrears in alabama and a member in good of! Go to work for you, all you have to do is the... A form for you, all you have to determine how to use the child support does not charge! Support forms are required by law to provide its services free of charge provided you meet the requirements their! All surcharges shall be deemed principal and not interest using our handy online interest calculator effect without any party to... Average principal balance placed for collection is $ 20,000 arrears refer to unpaid support... Avoid mistakes and ensure that the parent owing the child is emancipated before that age question that parents should everything. Cse is required by law accrues at the age of emancipation as 19 years old the... And ensure that the back support parent of a minor child to help with expenses associated with raising that.. Accumulating a hefty bill for child support owed could land you in prison section!
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