Arkansas House Bill HB1794

Arkansas 2023 Regular Session

• Introduced: 3/29/23
• Refer: 3/29/23
• Report Pass: 3/30/23
• Failed: 5/1/23

Caption

To Amend The Rate At Which Interest For Child Support That Is Due And Unpaid Accrues.

Impact

The proposed changes in HB1794 could have various implications on family law and financial obligations in Arkansas. By lowering the interest rate, the bill may encourage more parents to meet their child support obligations promptly, as the financial penalties would be less punitive. This could ultimately lead to improved financial stability for custodial parents and more effective support for children. Furthermore, this change may result in fewer court disputes related to the enforcement of child support judgments, particularly those involving accrued interest.

Summary

House Bill 1794 aims to amend the existing law regarding the interest rate applied to unpaid child support obligations in the state of Arkansas. The bill specifically proposes to lower the annual interest accrual rate for overdue child support from the current rate of ten percent (10%) to two percent (2%). This significant reduction reflects an effort to alleviate the financial burden on individuals owing child support, making compliance more manageable and potentially reducing further legal complications arising from high interest on unpaid amounts.

Contention

While proponents of the bill argue that reducing the interest rate on unpaid child support is a necessary reform aimed at easing the pressures on non-custodial parents, opponents may express concerns about the potential consequences of lowering financial penalties on accountability. Critics could argue that a lower interest rate may not sufficiently incentivize timely payments, which might ultimately affect custodial parents and children's financial welfare. Discussions around this bill may involve broader debates on balancing the needs of familial support against the obligations of parents and the state's role in enforcing these responsibilities.