Legal issues force Services Australia to pause 86,000 Centrelink debt repayments. Are you affected?

If you've ever received a scary letter from Centrelink demanding repayment of a welfare debt (that you believe is not accurate), you know how stressful it can be.

Good news for some Australians facing these demands: Services Australia has stopped collecting repayments from 86,000 people because they suspect these debts might not be valid.



Let's take a step back to better understand the situation. In August, the Commonwealth Ombudsman revealed that over the last two decades, around 100,000 debts, or potential debts, were wrongly calculated by incorrectly distributing the income of welfare recipients.

In response, Services Australia initially stopped creating new welfare debts for income earned before December 2020.

Now, they've taken an extra step by halting the repayments for those they had previously claimed owed them money.


Screenshot 2023-10-31 at 9.30.57 AM.png
Services Australia paused 86,000 Centrelink repayments due to legal concerns. Credit: Shutterstock.



In the past week, the NotMyDebt campaign has received numerous reports from people who previously faced income support payment-related debts. These debts have now disappeared from the 'Money you owe' section on the Centrelink website.

In fact, a news source has verified two cases where people's debts vanished, one of which involved a former income support recipient who was initially told they owed $4,000.



This new issue is said to be different from the notorious Robodebt scheme, where debts were calculated by averaging annual employment income over 26 fortnights, which was later found to be largely unfair and unlawful by a royal commission.

In response to concerns raised by the Commonwealth Ombudsman, Services Australia has paused debt repayments and internal reviews related to income apportionment before December 7, 2020.

According to Services Australia's website, the agency is ‘Working closely with the Department of Social Services to get a clear position. The pause will stay in place until we have advice on the next steps.’

The agency also added that this pause does not mean your debt has been cancelled.

This means that, while these debts may not appear in the 'Money you owe' section of your Centrelink online account during the pause, they will still appear in your debt statement.



How did this happen?

According to reports, Services Australia sometimes used payslips that didn't match the reporting periods for calculating welfare debts. When this happened, they came up with an 'average' daily income.

The ombudsman discovered that in a process called 'apportionment', the agency divided a person's employment income across multiple reporting periods. These periods are essential for determining Centrelink payments like Jobseeker.

However, this approach violated the Social Security Act.

As a result, Services Australia stopped around 13,000 debt reviews, and there may be up to 87,000 more cases affected.



Services Australia is reaching out to people whose debts have been paused first via SMS and then by letter, providing details about the specific debts on hold.

They said: ‘If you get a payment from us, we'll stop deducting repayments for the debt that has been paused. If you have a direct debit arrangement set up with us, we'll stop the arrangement while your debt is paused.’

‘If you have other debts that aren't impacted by the pause, recovery action will continue for those debts.’

Key Takeaways

  • Services Australia has paused Centrelink repayments for 86,000 individuals over concerns that welfare debts may be unlawful.
  • This response comes after the Commonwealth Ombudsman revealed that up to 100,000 debts were incorrectly calculated over two decades.
  • Service Australia clarified these debts have not been waived and will still appear in recipients' debt statements.

If you're facing a situation like this or need more information, consider reaching out to Services Australia. You can contact their customer service department or, even better, visit their website for more details.



Although Services Australia is working to fix these repayment errors, it's uncertain how long this process will take. If you're expecting income support repayment, it's a good idea to keep an eye on your finances and make sure your debts are accurate when they're finally addressed.

What are your thoughts on this news, members? Let us know in the comments below.
 
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If you've ever received a scary letter from Centrelink demanding repayment of a welfare debt (that you believe is not accurate), you know how stressful it can be.

Good news for some Australians facing these demands: Services Australia has stopped collecting repayments from 86,000 people because they suspect these debts might not be valid.



Let's take a step back to better understand the situation. In August, the Commonwealth Ombudsman revealed that over the last two decades, around 100,000 debts, or potential debts, were wrongly calculated by incorrectly distributing the income of welfare recipients.

In response, Services Australia initially stopped creating new welfare debts for income earned before December 2020.

Now, they've taken an extra step by halting the repayments for those they had previously claimed owed them money.


View attachment 33434
Services Australia paused 86,000 Centrelink repayments due to legal concerns. Credit: Shutterstock.



In the past week, the NotMyDebt campaign has received numerous reports from people who previously faced income support payment-related debts. These debts have now disappeared from the 'Money you owe' section on the Centrelink website.

In fact, a news source has verified two cases where people's debts vanished, one of which involved a former income support recipient who was initially told they owed $4,000.



This new issue is said to be different from the notorious Robodebt scheme, where debts were calculated by averaging annual employment income over 26 fortnights, which was later found to be largely unfair and unlawful by a royal commission.

In response to concerns raised by the Commonwealth Ombudsman, Services Australia has paused debt repayments and internal reviews related to income apportionment before December 7, 2020.

According to Services Australia's website, the agency is ‘Working closely with the Department of Social Services to get a clear position. The pause will stay in place until we have advice on the next steps.’

The agency also added that this pause does not mean your debt has been cancelled.

This means that, while these debts may not appear in the 'Money you owe' section of your Centrelink online account during the pause, they will still appear in your debt statement.



How did this happen?

According to reports, Services Australia sometimes used payslips that didn't match the reporting periods for calculating welfare debts. When this happened, they came up with an 'average' daily income.

The ombudsman discovered that in a process called 'apportionment', the agency divided a person's employment income across multiple reporting periods. These periods are essential for determining Centrelink payments like Jobseeker.

However, this approach violated the Social Security Act.

As a result, Services Australia stopped around 13,000 debt reviews, and there may be up to 87,000 more cases affected.



Services Australia is reaching out to people whose debts have been paused first via SMS and then by letter, providing details about the specific debts on hold.

They said: ‘If you get a payment from us, we'll stop deducting repayments for the debt that has been paused. If you have a direct debit arrangement set up with us, we'll stop the arrangement while your debt is paused.’

‘If you have other debts that aren't impacted by the pause, recovery action will continue for those debts.’

Key Takeaways

  • Services Australia has paused Centrelink repayments for 86,000 individuals over concerns that welfare debts may be unlawful.
  • This response comes after the Commonwealth Ombudsman revealed that up to 100,000 debts were incorrectly calculated over two decades.
  • Service Australia clarified these debts have not been waived and will still appear in recipients' debt statements.

If you're facing a situation like this or need more information, consider reaching out to Services Australia. You can contact their customer service department or, even better, visit their website for more details.



Although Services Australia is working to fix these repayment errors, it's uncertain how long this process will take. If you're expecting income support repayment, it's a good idea to keep an eye on your finances and make sure your debts are accurate when they're finally addressed.

What are your thoughts on this news, members? Let us know in the comments below.
Bloody government cover u for their stuff ups
 
Does that also apply to Child Support Agency debts? Wish it did. I'd be $8000 dollars richer!
My son was paying triple to what he needed to pay , then his ex found someone else ans he actually thought they were going to try again then she turned around and stopped my son from seeing his girls now 5 and 6.
He has refused to pay child support for the past 8 months. He says why should I pay it when she won't let me see them.
This is something her mother did with each new partner..

He is going through the family law court but won't be until June next year. And $60,000 plus . Really very unfair
 
My son was paying triple to what he needed to pay , then his ex found someone else ans he actually thought they were going to try again then she turned around and stopped my son from seeing his girls now 5 and 6.
He has refused to pay child support for the past 8 months. He says why should I pay it when she won't let me see them.
This is something her mother did with each new partner..

He is going through the family law court but won't be until June next year. And $60,000 plus . Really very unfair
Hopefully he won’t get hit with a big child support debt, our son had to pay even when the bitchy ex refused to let him see his daughter, after she walked out, until he could get a court date and she was ordered to give him custody by the judge. It took almost six months, even we were refused any contact with our granddaughter who I had been looking after at least 3/4 days and or nights a week while they both worked. It took over 4 years of on and off court visits to get everything sorted and cost well over $100,000. Totally unjustified waiting times and every time our son even rang the solicitors it was at least $300 and ringing the barrister was at least $500. It is all just a money making rip off.
 
I think all the debts should be wiped and that if Centrelink make the mistakes and overpay people they should not have to repay the money. Might make Centrelink more accountable for the stuff ups they make.
 
If you've ever received a scary letter from Centrelink demanding repayment of a welfare debt (that you believe is not accurate), you know how stressful it can be.

Good news for some Australians facing these demands: Services Australia has stopped collecting repayments from 86,000 people because they suspect these debts might not be valid.



Let's take a step back to better understand the situation. In August, the Commonwealth Ombudsman revealed that over the last two decades, around 100,000 debts, or potential debts, were wrongly calculated by incorrectly distributing the income of welfare recipients.

In response, Services Australia initially stopped creating new welfare debts for income earned before December 2020.

Now, they've taken an extra step by halting the repayments for those they had previously claimed owed them money.


View attachment 33434
Services Australia paused 86,000 Centrelink repayments due to legal concerns. Credit: Shutterstock.



In the past week, the NotMyDebt campaign has received numerous reports from people who previously faced income support payment-related debts. These debts have now disappeared from the 'Money you owe' section on the Centrelink website.

In fact, a news source has verified two cases where people's debts vanished, one of which involved a former income support recipient who was initially told they owed $4,000.



This new issue is said to be different from the notorious Robodebt scheme, where debts were calculated by averaging annual employment income over 26 fortnights, which was later found to be largely unfair and unlawful by a royal commission.

In response to concerns raised by the Commonwealth Ombudsman, Services Australia has paused debt repayments and internal reviews related to income apportionment before December 7, 2020.

According to Services Australia's website, the agency is ‘Working closely with the Department of Social Services to get a clear position. The pause will stay in place until we have advice on the next steps.’

The agency also added that this pause does not mean your debt has been cancelled.

This means that, while these debts may not appear in the 'Money you owe' section of your Centrelink online account during the pause, they will still appear in your debt statement.



How did this happen?

According to reports, Services Australia sometimes used payslips that didn't match the reporting periods for calculating welfare debts. When this happened, they came up with an 'average' daily income.

The ombudsman discovered that in a process called 'apportionment', the agency divided a person's employment income across multiple reporting periods. These periods are essential for determining Centrelink payments like Jobseeker.

However, this approach violated the Social Security Act.

As a result, Services Australia stopped around 13,000 debt reviews, and there may be up to 87,000 more cases affected.



Services Australia is reaching out to people whose debts have been paused first via SMS and then by letter, providing details about the specific debts on hold.

They said: ‘If you get a payment from us, we'll stop deducting repayments for the debt that has been paused. If you have a direct debit arrangement set up with us, we'll stop the arrangement while your debt is paused.’

‘If you have other debts that aren't impacted by the pause, recovery action will continue for those debts.’

Key Takeaways

  • Services Australia has paused Centrelink repayments for 86,000 individuals over concerns that welfare debts may be unlawful.
  • This response comes after the Commonwealth Ombudsman revealed that up to 100,000 debts were incorrectly calculated over two decades.
  • Service Australia clarified these debts have not been waived and will still appear in recipients' debt statements.

If you're facing a situation like this or need more information, consider reaching out to Services Australia. You can contact their customer service department or, even better, visit their website for more details.



Although Services Australia is working to fix these repayment errors, it's uncertain how long this process will take. If you're expecting income support repayment, it's a good idea to keep an eye on your finances and make sure your debts are accurate when they're finally addressed.

What are your thoughts on this news, members? Let us know in the comments below.
About ten odd years ago I was widowed, told I had been overpaid. Owed $21,000. How they could have overpaid that amount in a short time was beyond me but still had to pay. Now 83 j have $6000 left to pay. Although they cut the repayment down and tried to help me. At 83 something tells me they won’t get a final payment. Told my kids if I die do not pay it.
To say I was terrified is an understatement. I still dont know why and how they overpaid as I was just getting a single pension and barely manageing. But no info forthcoming
 
Hopefully he won’t get hit with a big child support debt, our son had to pay even when the bitchy ex refused to let him see his daughter, after she walked out, until he could get a court date and she was ordered to give him custody by the judge. It took almost six months, even we were refused any contact with our granddaughter who I had been looking after at least 3/4 days and or nights a week while they both worked. It took over 4 years of on and off court visits to get everything sorted and cost well over $100,000. Totally unjustified waiting times and every time our son even rang the solicitors it was at least $300 and ringing the barrister was at least $500. It is all just a money making rip off.
I know it's ridiculous how expensive. Our friends son has gone through similar, he has paid over $150,000 in court cost and lawyers fees and the judge says the same thing everything, that she has to give him his visitation, every second weekend and two week days. But she never opens the door or she goes out, the police can do nothing intact he is a police officer abd high ranked 🙄. Each time it has to go back to court and something over again . Really she should be fined heavily but nothing and she knows she can get away with it.

I told my son he wants to becareful he doesn't cop a fine. Atm no one has custody and it's been 6 months since he has seen them. He is thinking of collecting them early on Friday from school and keep them for the week end
 
About ten odd years ago I was widowed, told I had been overpaid. Owed $21,000. How they could have overpaid that amount in a short time was beyond me but still had to pay. Now 83 j have $6000 left to pay. Although they cut the repayment down and tried to help me. At 83 something tells me they won’t get a final payment. Told my kids if I die do not pay it.
To say I was terrified is an understatement. I still dont know why and how they overpaid as I was just getting a single pension and barely manageing. But no info forthcoming
Maybe get one of your kids to call and ask for a statement showing the time you were so called over paid
 
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If you've ever received a scary letter from Centrelink demanding repayment of a welfare debt (that you believe is not accurate), you know how stressful it can be.

Good news for some Australians facing these demands: Services Australia has stopped collecting repayments from 86,000 people because they suspect these debts might not be valid.



Let's take a step back to better understand the situation. In August, the Commonwealth Ombudsman revealed that over the last two decades, around 100,000 debts, or potential debts, were wrongly calculated by incorrectly distributing the income of welfare recipients.

In response, Services Australia initially stopped creating new welfare debts for income earned before December 2020.

Now, they've taken an extra step by halting the repayments for those they had previously claimed owed them money.


View attachment 33434
Services Australia paused 86,000 Centrelink repayments due to legal concerns. Credit: Shutterstock.



In the past week, the NotMyDebt campaign has received numerous reports from people who previously faced income support payment-related debts. These debts have now disappeared from the 'Money you owe' section on the Centrelink website.

In fact, a news source has verified two cases where people's debts vanished, one of which involved a former income support recipient who was initially told they owed $4,000.



This new issue is said to be different from the notorious Robodebt scheme, where debts were calculated by averaging annual employment income over 26 fortnights, which was later found to be largely unfair and unlawful by a royal commission.

In response to concerns raised by the Commonwealth Ombudsman, Services Australia has paused debt repayments and internal reviews related to income apportionment before December 7, 2020.

According to Services Australia's website, the agency is ‘Working closely with the Department of Social Services to get a clear position. The pause will stay in place until we have advice on the next steps.’

The agency also added that this pause does not mean your debt has been cancelled.

This means that, while these debts may not appear in the 'Money you owe' section of your Centrelink online account during the pause, they will still appear in your debt statement.



How did this happen?

According to reports, Services Australia sometimes used payslips that didn't match the reporting periods for calculating welfare debts. When this happened, they came up with an 'average' daily income.

The ombudsman discovered that in a process called 'apportionment', the agency divided a person's employment income across multiple reporting periods. These periods are essential for determining Centrelink payments like Jobseeker.

However, this approach violated the Social Security Act.

As a result, Services Australia stopped around 13,000 debt reviews, and there may be up to 87,000 more cases affected.



Services Australia is reaching out to people whose debts have been paused first via SMS and then by letter, providing details about the specific debts on hold.

They said: ‘If you get a payment from us, we'll stop deducting repayments for the debt that has been paused. If you have a direct debit arrangement set up with us, we'll stop the arrangement while your debt is paused.’

‘If you have other debts that aren't impacted by the pause, recovery action will continue for those debts.’

Key Takeaways

  • Services Australia has paused Centrelink repayments for 86,000 individuals over concerns that welfare debts may be unlawful.
  • This response comes after the Commonwealth Ombudsman revealed that up to 100,000 debts were incorrectly calculated over two decades.
  • Service Australia clarified these debts have not been waived and will still appear in recipients' debt statements.

If you're facing a situation like this or need more information, consider reaching out to Services Australia. You can contact their customer service department or, even better, visit their website for more details.



Although Services Australia is working to fix these repayment errors, it's uncertain how long this process will take. If you're expecting income support repayment, it's a good idea to keep an eye on your finances and make sure your debts are accurate when they're finally addressed.

What are your thoughts on this news, members? Let us know in the comments below.
Good old Centrelink, my story I could write a book bout them. Firstly my husband passed away in 2011 melanoma this was a 12mth battle for him and myself our 12yr old twins. I had heart attack 6 mths later, I diagnosed with major depression went on disability payments. I was also caring for my father who had dementia & asbestosis that was a court case of 5yrs I also dealt with for dad I never claimed carers pension. After 4 long yrs i went back to work I decided I needed a break. It is now 2015, I worked casual, did wage reports Centrelink apparently adjusted their payment. 2019 I get letter I owe money, Covid hits debts on hold, class action happens I signed solicitor docs. I do my tax return for 22/23 my refund went to Centrelink. In last 12 mths I was diagnosed with bowel cancer had surgery I’m good now. Had serious motor vehicle accident car was written off I used money to live on rather than buy a car. I never took Centrelink money, no way I’m having them come back in 10ths tell me I owe them money. I also sold a lot of my belongings to survive. Centrelink hate them with a passion. I retire soon I’m not taking a cent from them, them are thrives of Australian people.
 
Good old Centrelink, my story I could write a book bout them. Firstly my husband passed away in 2011 melanoma this was a 12mth battle for him and myself our 12yr old twins. I had heart attack 6 mths later, I diagnosed with major depression went on disability payments. I was also caring for my father who had dementia & asbestosis that was a court case of 5yrs I also dealt with for dad I never claimed carers pension. After 4 long yrs i went back to work I decided I needed a break. It is now 2015, I worked casual, did wage reports Centrelink apparently adjusted their payment. 2019 I get letter I owe money, Covid hits debts on hold, class action happens I signed solicitor docs. I do my tax return for 22/23 my refund went to Centrelink. In last 12 mths I was diagnosed with bowel cancer had surgery I’m good now. Had serious motor vehicle accident car was written off I used money to live on rather than buy a car. I never took Centrelink money, no way I’m having them come back in 10ths tell me I owe them money. I also sold a lot of my belongings to survive. Centrelink hate them with a passion. I retire soon I’m not taking a cent from them, them are thrives of Australian people.
I'm so sorry you have gone through all this, not many people could deal with one of these.
Please talk to someone at centrelink , you deserve this money. They don't always make mistakes and I think they are so much more careful now.
As I said you deserve it
 
My son was paying triple to what he needed to pay , then his ex found someone else ans he actually thought they were going to try again then she turned around and stopped my son from seeing his girls now 5 and 6.
He has refused to pay child support for the past 8 months. He says why should I pay it when she won't let me see them.
This is something her mother did with each new partner..

He is going through the family law court but won't be until June next year. And $60,000 plus . Really very unfair
My late husband & I paid child support for 18yrs for his son previous relationship. We found out she changed his surname when he started school she also had 7 other children all different fathers collecting child support. Last time we saw him he was 3yrs old she moved every 6mths. We also found out he left school at age of 15. When my husband died she came out from under gutter try claim money from his will. Ppl like that need to show cause in court yes clog up courts this is who approved this crap.
 
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I went through the Robodebt bs. It took me a year and a bit to fight them and said I wasn't paying it as I knew I declared everything. Also the fact they wanted all payslips etc from 11 years ago at that time. I told them, I produced them at the time, you photocopied them, so you look them up in your system. I allegedly owed $2500. They even threatened with debiting my pay each fortnight. I did not need to pay anything as it turned out. The stress and anxiety it caused and now I read they are at it again. Disgusting.
 
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If you've ever received a scary letter from Centrelink demanding repayment of a welfare debt (that you believe is not accurate), you know how stressful it can be.

Good news for some Australians facing these demands: Services Australia has stopped collecting repayments from 86,000 people because they suspect these debts might not be valid.



Let's take a step back to better understand the situation. In August, the Commonwealth Ombudsman revealed that over the last two decades, around 100,000 debts, or potential debts, were wrongly calculated by incorrectly distributing the income of welfare recipients.

In response, Services Australia initially stopped creating new welfare debts for income earned before December 2020.

Now, they've taken an extra step by halting the repayments for those they had previously claimed owed them money.


View attachment 33434
Services Australia paused 86,000 Centrelink repayments due to legal concerns. Credit: Shutterstock.



In the past week, the NotMyDebt campaign has received numerous reports from people who previously faced income support payment-related debts. These debts have now disappeared from the 'Money you owe' section on the Centrelink website.

In fact, a news source has verified two cases where people's debts vanished, one of which involved a former income support recipient who was initially told they owed $4,000.



This new issue is said to be different from the notorious Robodebt scheme, where debts were calculated by averaging annual employment income over 26 fortnights, which was later found to be largely unfair and unlawful by a royal commission.

In response to concerns raised by the Commonwealth Ombudsman, Services Australia has paused debt repayments and internal reviews related to income apportionment before December 7, 2020.

According to Services Australia's website, the agency is ‘Working closely with the Department of Social Services to get a clear position. The pause will stay in place until we have advice on the next steps.’

The agency also added that this pause does not mean your debt has been cancelled.

This means that, while these debts may not appear in the 'Money you owe' section of your Centrelink online account during the pause, they will still appear in your debt statement.



How did this happen?

According to reports, Services Australia sometimes used payslips that didn't match the reporting periods for calculating welfare debts. When this happened, they came up with an 'average' daily income.

The ombudsman discovered that in a process called 'apportionment', the agency divided a person's employment income across multiple reporting periods. These periods are essential for determining Centrelink payments like Jobseeker.

However, this approach violated the Social Security Act.

As a result, Services Australia stopped around 13,000 debt reviews, and there may be up to 87,000 more cases affected.



Services Australia is reaching out to people whose debts have been paused first via SMS and then by letter, providing details about the specific debts on hold.

They said: ‘If you get a payment from us, we'll stop deducting repayments for the debt that has been paused. If you have a direct debit arrangement set up with us, we'll stop the arrangement while your debt is paused.’

‘If you have other debts that aren't impacted by the pause, recovery action will continue for those debts.’

Key Takeaways

  • Services Australia has paused Centrelink repayments for 86,000 individuals over concerns that welfare debts may be unlawful.
  • This response comes after the Commonwealth Ombudsman revealed that up to 100,000 debts were incorrectly calculated over two decades.
  • Service Australia clarified these debts have not been waived and will still appear in recipients' debt statements.

If you're facing a situation like this or need more information, consider reaching out to Services Australia. You can contact their customer service department or, even better, visit their website for more details.



Although Services Australia is working to fix these repayment errors, it's uncertain how long this process will take. If you're expecting income support repayment, it's a good idea to keep an eye on your finances and make sure your debts are accurate when they're finally addressed.

What are your thoughts on this news, members? Let us know in the comments below.
 
Centrelink would honestly have to be the most uninformed and rude staff that know zero of any government department out there. Anything to do with any government department is hopeless. I have been told by one non English speaking person, I don't know anything. Another one told me I'm not trained in that and put the phone down on me. So much wasted time and $ and they are all hopeless! Remember this is our money
The government does not have money. It's from taxpayers
Get some decent English speaking staff and train them! Atrocious.
 
My late husband & I paid child support for 18yrs for his son previous relationship. We found out she changed his surname when he started school she also had 7 other children all different fathers collecting child support. Last time we saw him he was 3yrs old she moved every 6mths. We also found out he left school at age of 15. When my husband died she came out from under gutter try claim money from his will. Ppl like that need to show cause in court yes clog up courts this is who approved this crap.
I hope she didn't manage to get anything from the will. It really isn't fair for fathers when it comes to children and child support
 
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Has anyone noticed that the Child Support Agency doesn't have any walk-in offices?

There's a very good reason for that which you all could well imagine.
I only told my son the other day to go into their office and talk face to face, he replied " and where would that be mum "

Every week he gets at least 2 letters from child support and these he rips up straight away

Up to 8 months ago he was paying triple to what he should have, he gave what his ex wanted , plus he paid for the girls clothes ect.
He had them every Sunday and every second week end plus every Wednesday. He also had them whenever she needed someone to look after them.

Then she started seeing a new man and then wanted my son not seeing the girls just so they could bond with the new dude.

Then the new dude moved in.
We then found out what the correct ammount of child support was and he started paying that and paying through child support.

He hasn't seen his girls in 8 months and he hasn't paid child support in 8 months. He says why should I pay if I can't see them ! I told him because they are your girls but he then says and how fo I know she is using it in them.

I want to know what can happen by him not paying it.
 
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