OT- Direct Deposit & Fed Rule Changes Could Affect CS Debtors

[meanyjack]

What is the name of your state (only U.S. law)? ALL states

Interesting story making the rounds today that could affect many adults who owe CS -- even though their children are probably grown and the amounts are mainly interest due the states (my only issue w/this story is that the sexist bias). Paper checks are going bye-bye
Thought I'd share this:

Direct deposit and federal rule change could cost child-support debtors their only income | cleveland.com

 

[punchcard]

I haven't read a poorly written, published article like that in a long time.

Anyway, here's the gist of the article.
Per law, government can collect 1/2 (or so) federal benefits (like social security) to pay for child support arrearages.

Usually, government takes their cut and the rest is sent to the deadbeat via paper check.
Government no longer is going to issue paper checks. Government still will take their cut and the rest is sent to the deadbeat. However, the deadbeat's money will be electronically deposited into the deadbeat's checking/savings account.

However, here's the rub, the government can freeze the deadbeat's checking/savings account. With paper checks, the deadbeat got the federal benefits money. With the new electronic deposits and a frozen checking/savings account, the deadbeat won't have access to any of his federal benefits money.

>Comment: The court's not going to allow the government to take control of more of deadbeats' federal benefits than allowed by law.

 

[Proserpina]

I suppose the flippant answer would be, "Pay your child support and it will be a non-issue".

 

[nextwife]

It's a potential nighmare for landlords, cities, and elder spouses who depend on the modest social security as their only income, and are now unemployable. Imagine suddenly creating huge homeless elderly populations and what that does to local economies.