Illinois drops most baby assist curiosity prices | Govt-and-politics

Illinois was one of only 15 states that automatically charged interest on late child support payments. A bill passed last May and signed by Governor JB Pritzker in August removed the automatic interest penalty and gave DHFS the power to legislate to determine how and whether interest penalties should be levied and enforced.

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These new administrative regulations came into force on January 1st.

According to the new regulation, custody parents have a one-time right to apply for interest penalties. Within one year of the emancipation of their youngest child and after all major child support obligations have been paid, they can apply for interest penalties for previous late payments.

In a press release, the agency found that families who do not participate in the program and instead make private child support arrangements only pay interest if ordered by a court.

The agency also found that black people accounted for 41% of all Title IV-D cases in Illinois and together owed 45% of all outstanding interest. White individuals, on the other hand, made up only 32% of IV-D cases and owed only 31% of all accrued interest.

In its press release, the agency said that research has shown that when a person’s maintenance obligations exceed their ability to pay, it leads to even more negative consequences, including the suspension or revocation of driver’s licenses, which can make it even more difficult for unsupervising parents to fulfill their obligations to catch up.

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