Interest

[Duped]

Hello,

My ex seems to have come to the realization that child support will have to be paid retroactively, should or can I request that the retroactive amounts be subject to interest and if so, to what amount? Due to the lack of support I have been unfortunately subjected to the high interest of credit card debt as that was the only credit I have and was needed to survive, yes I am that poor.

Thanks

[logicalvelocity]

Duped,

An a FRO document they had this to say in regards to interest:

http://www.mcss.gov.on.ca/NR/MCFCS/F...s/HTML/SAR.htm

Instructions for Completing Interest Calculations

Please note that the Family Responsibility Office will only take enforcement action on interest that has accrued as a result of the support payor's failure to comply with the support order. Where funds are being remitted to the Family Responsibility Office pursuant to a support deduction order or garnishment, the support payor has no control over the schedule of payments by the income source or garnishee and, therefore, the Office will not enforce any interest owing for delays in the receipt of support payments.

When determining the amount of interest owed to you, you should know the following:

i. If your Ontario support order is dated after June 21, 1979, the interest rate must be stated in the order. For Ontario orders made before June 22, 1979, the rate of interest is five percent (5%) and does not have to be stated in the order.

ii. Prior to January 1, 1985, the Provincial Court (Family Division) could not award interest.

iii. Under the Courts of Justice Act, interest accruing on a debt is simple interest and not compound interest.

iv. Where the court provides that support be paid on a periodic basis (e.g. $500.00 / month), each payment in default will bear interest from the date that the payment was due. Therefore, the interest owing for each missed support payment must be calculated separately.

v. Interest can be calculated by using the following formula:
(Principal x Interest Rate x Number of Days the Payment is in Arrears)/365 days
Where
The principal is the outstanding individual support payment.

The Interest Rate, established by the Courts of Justice Act or its predecessor, is the rate that was in effect on the date that the court made the support order.

Example
On January 27, 1992 the court made an order for support in the amount of $500.00 / month. The support payor has failed to make support payments for the months of July and September, 1992. The prescribed rate of interest for the first quarter of 1992 is 9%. As of October 1, 1992, the accrued interest is calculated as follows:

Interest on July's payment is: 500 x 9% x (92/365) = $11.34

Interest on September's payment if 500 x 9% x (30/365) = $3.70

Total Interest = $11.34 + $3.70 = $15.04

lv

[Duped]

Thanks LV

So in my situation where hopefully on tuesday I get in my settlement order that CS will be granted retro to January 1st, 2006, and interest will be calculated for the number of months in arrears for each overdue payment. Do I need to specify the interest rate in the minutes of settlement or just state "Prime+?" or will that just automatically be input by the court?

If my lawyer leaves it out could it be overlooked by the court?

Not clear on exactly what I need to do.

Thanks again LV

Duped

[logicalvelocity]

Duped,

If it was me I would specify the interest - This way it shouldn't get overlooked and fall through the cracks.


lv