The Compromise of Arrears Program (COAP) made its debut back in 2003, the same year the beloved children’s movie Finding Nemo came out, demonstrating the grand journey a parent will make for their child. COAP was created to help parents who owe child support get to a place where they can pay something towards their support order. In 2004, the program was authorized on a temporary basis and was so successful it became permanent in 2008.
COAP allows parents who are currently making payments, and who owe at least $5,000 in past due child support, to make an offer to pay a portion of the past due amount. Only money owed to the government while the parent with the child was on assistance can be considered. Any child support owed directly to the other parent is not eligible to be settled in this program.
The ability to pay is determined by the parent’s income, assets, and allowable expenses. Depending on the case, approved parents can make their payment in a lump sum or by setting up a payment plan, as long as it’s paid in full within 36 months. Because the required payment is dependent on the applicant’s financial situation, the minimum amount can be different between applicants.
The interest rate on past due child support in California is 10 percent per month, which continues to accrue even if there is a compromise agreement. Reducing the total amount of past due support can also help reduce the amount of accrued interest.
Parents interested in the program fill out a COAP application and submit income, bank account, and asset verification to their local child support agency (LCSA). LCSA directors then approve eligible payment offers made by applicants. Parents who make offers lower than the minimum requirement for their case are given an opportunity to make a counter offer.
There are payment exceptions for parents with verified hardships, such as physical or mental disability, which allow parents to pay less than the standard ten percent minimum, forgiving up to 92.5% of the total amount owed to the state. If an LCSA approves an applicant’s offer to pay less than the minimum, the settlement agreement is submitted to the California Department of Child Support Services (CA DCSS) for review and final approval. Once approved, the agreement is then finalized with signatures from both parents. This past state fiscal year, more than half of the 2,601 applicants seeking a COAP agreement were approved.
“When I joined COAP in 2013, I was delighted,” says CA DCSS COAP unit manager, Michelle Santiago. “I started my post-college career as a local social service case manager and it was truly one of the most rewarding experiences I’ve ever had. For me, the rewards in this line of work are found in the practical more so than the theoretical. COAP is a wonderful program and I’m lucky to be a part of it.”
Eager to build on the program’s success, there are important changes coming to the program. To increase the reliability of payments to families, CA DCSS is developing a tool that will better reflect a parent’s ability to pay by using county-specific income thresholds that can account for the gap between income and living costs based on where the participant lives. Additionally, the program is simplifying the application process, reducing the minimum compromise repayment for the most vulnerable and at-risk participants, and creating more flexible payment timeline options.
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