Title 15 . Revenue

Chapter 125 . (Repealed)

Section 620. Negotiated agreement for payment schedule on arrears; modification of agreement

15 AAC 125.620. Negotiated agreement for payment schedule on arrears; modification of agreement

(a) In negotiating an agreement for a payment schedule on arrears under AS 25.27.244 (g)(1) or 25.27.246(f)(1), the agency will calculate the monthly amount by adding the following amounts:

(1) the monthly ongoing support obligation;

(2) the monthly interest charge; and

(3) a monthly amount to be collected and applied to arrears.

(b) If an obligor has previously entered into an agreement for a payment schedule with the agency under AS 25.27.244 (g)(1) or AS 25.27.246 (f)(1) and has failed to make the payments required by that agreement, the obligor shall first bring current all payments that are due under the previous agreement before the agency will enter into another agreement for a payment schedule under AS 25.27.244 (g)(1) or AS 25.27.246 (f)(1).

(c) The agency may not enter into an agreement under AS 25.27.244 (g) or AS 25.27.246 (f) until the obligor agrees to pay the amount calculated in (a) of this section, subject to the limitations of 15 U.S.C. 1673(b) and 15 AAC 125.540(c) . The payments under the agreement must be made pursuant to an income withholding order or an order to withhold and deliver issued by the agency or by a tribunal of another state. The agency will consider the obligor to be in substantial compliance with a payment schedule if payments are received under an income withholding order or an order to withhold and deliver at the percentages stated in 15 U.S.C. 1673(b), or at a lower percentage if adopted by the agency, even if the payment is less than the amount calculated under (a) of this section.

(d) At the request of the obligor, the agency will, in its discretion, make arrangements with an obligor to issue an order to withhold and deliver if the obligor is self-employed. An order to withhold and deliver issued under this subsection is subject to periodic review to determine whether payments are being made as required. As a part of a periodic review, the agency will, in its discretion, request that the obligor provide business records to establish that the proper amounts are being withheld pursuant to the withholding order. If the agency determines that the obligor has failed to withhold and deliver the proper amounts, the agency may find that the obligor is not in substantial compliance with the payment schedule.

(e) At the request of the obligor or at the agency's discretion, the agency will, in its discretion, modify a payment schedule agreed to under AS 25.27.244 (g)(1) or AS 25.27.246 (f)(1) if

(1) the ongoing support obligation is modified after the agency has signed an agreement for a payment schedule; or

(2) there is a substantial change in the amount of the arrears so that, applying the amortization chart or formula set out in 15 AAC 125.545, the amount required to be collected each month changes substantially; for purposes of this paragraph, the amount required to be collected changes substantially if the amount changes by at least 30 percent.

(f) If the agency determines that a modification of a payment schedule is appropriate under (e) of this section, the agency will give the obligor written notice of the proposed modification at least 10 days before the effective date of the modification. The agency will send the notice by first class mail or by electronic means to the obligor's last known address on file with the agency.

History: Eff. 10/1/98, Register 147; am 6/15/2001, Register 158; am 4/1/2005, Register 173

Authority: AS 25.27.020

AS 25.27.244

AS 25.27.246