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Letting state agencies seize the money contradicts the public stance of the Department of Health and Human Services, the federal agency in charge of child support collections. The department does not want states to collect child support so aggressively that poor people lose their only income, spokesman Ken Wolfe says. "Child support enforcement -- getting that money and passing it on to parents and children
-- is a measure to fight poverty, and it doesn't make sense to accomplish that by impoverishing somebody else," he says. Wolfe said HHS is developing guidelines for states to "make sure we're not putting someone into deep poverty as a result of an automatic collection." He declined to provide details of those plans. Lawyers from HHS agreed with Treasury's decision to let states seize benefits, according to the Treasury memo. An early version of the Treasury department rule protected people from having their federal benefits frozen by debt collectors
-- including private collection agencies and states seeking back child support. State child support agencies replied in public comments on the proposed rule that blocking their access to people's benefits would cause great harm to parents and children receiving child support. HHS research suggests the policy could deepen the hardship for people who collect benefits as well. People who owe large amounts of child support are almost universally poor. Among those owing $30,000 or more, three-fourths had no reported income or income of less than $10,000, HHS says. Many had their earnings interrupted by disability or jail time and are unlikely to repay the child support debt, the government-sponsored research says. The usual methods of collecting back child support often don't work with the poor. States typically start by garnishing wages. If that doesn't work, they can suspend driver's licenses, revoke passports and take away professional credentials. Those measures have little effect on poor people without jobs who rely on federal benefits. They have no wages to garnish and no passports. Many can't afford a car and do not need a driver's license. State child support agencies echo the HHS view that child support enforcement should not be so draconian that people end up with nothing. "You don't want the noncustodial parent to go out and be living on the streets. You're not going to collect anything at that point," says Tom Shanahan, spokesman for the Idaho Department of Health and Welfare. The Idaho department requires people who owe child support to show good faith by paying a minimum amount and seeking jobs when they are out of work, Shanahan says. The White House is reviewing the final version of the rule. Its impact so far has been limited, legal-aid lawyers say, because people can still use paper checks. A White House spokeswoman did not respond a request for comment. In a letter sent last week, the National Consumer Law Center and dozens of other groups called on the head of the Social Security Administration to withdraw his support for the rule.
"While both current and past due child support orders should be paid," the letter said, it should not result "in the complete impoverishment of recipients" of federal benefits. The issue has failed to raise alarm in part because most people feel little in common with men labeled deadbeat dads, says John Vail, an attorney with the Center for Constitutional Litigation who provided legal services for the poor for decades. "There's not a lot of sympathy for deadbeat dads, and justly so," Vail says. "But everybody's got limits, and I think people who have never walked a mile in some of those old, worn-out shoes are a little quick to rush to judgment about what that life might be like."
[Associated
Press;
AP Business Writer Christina Rexrode contributed to this report.
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