# How is Interest Calculated on Support Arrears

1. Member
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## How is Interest Calculated on Support Arrears

My question involves child support in the State of: Illinois

HI -

My step-daughter graduated high school in June 2011 at age 18. Child support prior to that was 80 weekly for current and 20 for arrears but the order (and the law) are written that once child support ceases upon graduation, all support monies immediately get attributed to the arrears so they should get paid off sooner being paid at essentially 400 a month.

We know there is interest but from the 2 statutes I've found it says child support arrears are taxed at 1/12th of the statutory amount which is 9%. When I do that math it comes out to .75%. (http://codes.lp.findlaw.com/ilstatutes/735/5/XII/12-109 that statute says 1/12 of this statute's rate: http://www.ilga.gov/legislation/ilcs...050K2-1303.htm)

However we cannot understand how they do their math because when she graduated he had approximately 16000-18000 in arrears. The majority is from interest that has accrued while he was only paying 20/wk (80/mo or 960/yr) towards the arrears. He is now at \$10000 but considering we pay \$400/mo (4800/yr) it should be going down a lot faster than that if interest is only .75%. It seems to be accruing more at the speed of a high rate credit card.

The statutes listed above say that the accrued interest should not be included in the arrears that are calculated monthly so if they aren't basing the math on all that interest, how could he still owe 10k after over 2.5 yrs. We've paid over \$12,000 in 2 years.

We've requested a full disbursement record to try and make heads and tails of all of this stuff.

Are we way off on how we are calculating things or what they base it on?

Thanks!

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## Re: How is Interest Calculated on Support Arrears

It's not that difficult to see how, after @30 months, a @18,000 debt with a 9% interest rate could have a balance of @10,000.

3. Member
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## Re: How is Interest Calculated on Support Arrears

Except for the fact that the law says the interest would be 1/2th of the statutory interest rate. Statutory interest is 9, so 1/12th of that is .75%.

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## Re: How is Interest Calculated on Support Arrears

Quoting Illinois Interest on Child Support Arrears
The interest on judgments arising by operation of law from child support orders shall be calculated by applying one‑twelfth of the current statutory interest rate as provided in Section 2‑1303 to the unpaid child support balance as of the end of each calendar month.
There are twelve months in a year, so that's a fair way to calculate your monthly interest. If you are confused because you think the monthly interest is the annual interest, that's your answer.

5. Member
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## Re: How is Interest Calculated on Support Arrears

Ahhh ok that makes more sense. Thank you for the help

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