Liens - A lien is a charge against property or other assets.
Created by having a certified copy
of the child support order or an "abstract"
of that order recorded at the county recorder's office
- often in several counties.
By putting the order or judgment
in the official records the public is put on notice
that the paying parent owes money. The recording creates
a lien - usually equal to the child support arrears
- against any property owned by the paying parent.
If the she/he tries to sell or refinance property,
the lien must be satisfied from the proceeds of the
sale or loan.
Commonly, there is not enough money
in the property sale or refinance to satisfy all the
arrears. The child support agency may then agree to
take less than the full arrears to allow the deal
to go through and get some payment rather than ruin
the deal and get no payment. Such an agreement does
not forgive any of the unpaid arrears.
If the property was refinanced, the
lien is still "on" that property and any
future sale is still subject to the lien. If the property
was sold, the lien is no longer "on" that
property but is on all other properties owned or acquired
later by the paying parent.
A lien is created in a Worker's
Compensation case by filing a document in the court
action that certifies the support arrears. If there
is a settlement of the claim, the child support agency
will usually negotiate a payment of a portion of the
arrears. If a settlement is negotiated it does not forgive
any arrears not paid by the settlement.
Collection
in Worker's Compensation cases is limited to support
that accrued after the injury occurred. The lien procedure
is separate from the wage withholding order that is
served to collect against temporary disability benefits
being paid to the injured worker. A Worker's Compensation
judge can decide that no money will be paid against
the lien.
A lien is created in a lawsuit
by filing a document with the court that certifies the
support arrears. Unless the court orders otherwise,
no settlement or award can be paid to the paying parent
until the lien (support arrears) are paid. If there
is not enough money in the award, or if the case is
being settled to avoid the chance of losing at trial,
the child support agency may agree to take less than
the full arrears amount. Such an agreement does not
forgive any unpaid arrears.
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