Relating to the accrual of interest on overdue child support.
The introduction of HB4213 will have significant implications for families dealing with overdue child support in Texas. By standardizing the interest rate for future overdue payments, the bill aims to reduce legal ambiguities and provide predictability for both custodial and non-custodial parents. It addresses concerns that the previous rates could vary widely depending on the specifics of a case. However, for existing arrears, the bill stipulates how interest rates will be applied based on the age of the debt, which could create financial implications for those with longstanding unpaid obligations.
House Bill 4213 seeks to amend the Family Code concerning the accrual of interest on overdue child support payments. The bill proposes to set the interest rate for delinquent child support at three percent simple interest per year, which applies to both unpaid current obligations and confirmed arrears. This modification aims to provide a clearer framework for how interest accumulates on child support debts, potentially alleviating confusion around existing regulations that dictated variable rates. The changes are set to take effect on January 1, 2026, allowing for adjustments in current practices that impact parents with unpaid child support obligations.
While the bill primarily aims to simplify child support processes, it is likely to be met with varying opinions. Proponents argue that establishing a consistent interest rate is fair and will benefit custodial parents owed back support. Critics, on the other hand, may raise concerns about the impact of increased financial burdens on non-custodial parents, especially those who have struggled to maintain timely payments. Additionally, the bill’s effective date of 2026 raises questions about whether this delay is necessary, with some advocating for more immediate reforms to support families facing economic challenges related to child support.