Many people understand that a failure to pay child support runs the risk of wage garnishments, seizures of tax refunds, or even property liens to pay off the outstanding support. However, delinquent child support can harm your long term financial future in other ways. In fact, failing to pay Minnesota child support can be noted on your credit report and inflict great damage to your credit score.
Nerdwallet warns that credit bureaus record outstanding child support payments in your credit file. So when you fail to make support payments, those delinquent payments will be recorded as part of your credit report. Some state agencies will report you if you rack up more than a thousand dollars in missed support payments. Overdue payments after six months will end up reported to a collection agency.
With these missed support payments on your credit report, you might find a frosty reception if you apply for a loan. Bankers and creditors will notice the delinquent payments on your report and could conclude that if you are not keeping up with payments to your children, you will not be reliable in paying off a creditor. Even worse, delinquent support payments stay on your credit report for seven years, which can mark you for a prolonged period of time.
Too much outstanding child support can also do great harm to your credit score. If a court places a lien on your property or hands down a judgment against you for the missed payments, the resulting loss of your assets can substantially lower your credit score. This creates an even bigger financial hole for you to climb out of, or at the very least, maintains an already low credit score.
This article is not written to provide readers with any legal advice. The purpose of this article is only for educational purposes.