Legal Definitions - arrearage

Arrearage refers to a debt or an amount of money that is overdue and has not been paid by its due date. It represents a past-due obligation that should have been settled earlier.

• Example 1: Child Support Payments

  After a divorce, Mark was ordered to pay $500 per month in child support. For the past three months, he has only paid $300 each month. The unpaid portion of his child support, totaling $600 ($200 per month for three months), constitutes an arrearage. His ex-spouse could pursue legal action to collect this overdue amount.

• Example 2: Rental Agreement

  Sarah rents an apartment for $1,200 per month, due on the first of each month. She was unable to pay her rent for October and November. By December 1st, Sarah has accumulated a rental arrearage of $2,400 ($1,200 for October + $1,200 for November). Her landlord could issue an eviction notice or demand payment for this overdue sum.

• Example 3: Utility Bills

  A small business, "Bright Ideas Inc.," receives monthly electricity bills. They missed paying their bill for July, which was $750, and only paid half of their August bill, which was $900. By September, Bright Ideas Inc. has an electricity arrearage of $1,200 ($750 from July + $450 from August). The utility company might send a disconnection notice if the arrearage is not settled promptly.