7 LONG TITLE
8 General Description:
9 This bill addresses collections related to domestic relations debt.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines terms; and
13 ▸ addresses what a court shall order under certain circumstances for collection of an
14 obligation or alleged obligation to pay past due child support or alimony.
15 Money Appropriated in this Bill:
17 Other Special Clauses:
19 Utah Code Sections Affected:
21 30-3-3.5, Utah Code Annotated 1953
23 Be it enacted by the Legislature of the state of Utah:
24 Section 1. Section 30-3-3.5 is enacted to read:
25 30-3-3.5. Collection fee for past due child support or alimony.
26 (1) As used in this section:
27 (a) "Debtor" means a person obligated or allegedly obligated to pay a domestic
28 relations debt.
29 (b) "Domestic relations debt" means an obligation or alleged obligation to pay past due
30 child support or alimony.
31 (2) (a) A court shall order the amounts described in Subsection (2)(b) be paid, if:
32 (i) the court issues a judgment requiring the payment of a domestic relations debt by
33 the debtor;
34 (ii) imposing a collection fee on the debtor or in relation to the domestic relations debt
35 is not prohibited or otherwise restricted by another federal or state law; and
36 (iii) the person owed the domestic relations debt has a contingency arrangement with
37 an attorney to collect the domestic relations debt.
38 (b) If the conditions of Subsection (2)(a) are met, a court shall order payment of:
39 (i) the principal amount due;
40 (ii) applicable interest;
41 (iii) a collection fee equal to the amount provided in the contingency agreement, except
42 that the collection fee may not exceed the lesser of:
43 (A) the actual amount the person owed the domestic relations debt is required to pay
44 for collection costs, regardless of whether that amount is a specific dollar amount or a
45 percentage of the principal amount owed for the domestic relations debt; or
46 (B) 40% of the principal amount owed to the person for the domestic relations debt;
47 (iv) reasonable attorney fees; and
48 (v) costs, if any, related to obtaining the judgment described in Subsection (2)(a)(i).
49 (3) The obligation to pay a collection fee described in Subsection (2)(b)(iii) is incurred
50 at the time the person owed a domestic relations debt enters into an agreement with an attorney
51 to collect the domestic relations debt.
52 (4) An obligation to pay a collection fee imposed under this section is in addition to
53 any obligation to pay reasonable attorney fees that may exist.