Legal Definitions - arrears

Arrears refers to money that is owed and has become overdue because it was not paid by the agreed-upon deadline. It represents a debt that has accumulated over time due to missed or incomplete payments.

Here are some examples to illustrate this concept:

• Child Support Payments: Imagine a parent is legally obligated to pay $800 in child support on the first day of each month. If, for three consecutive months, they fail to make any payment, they would then be $2,400 in arrears ($800 x 3 months). This amount represents the accumulated, unpaid child support that is past its due date.

• Rent Obligations: Consider a tenant whose monthly rent of $1,200 is due on the first of every month. If the tenant misses their rent payment for June and then only pays $600 for July, they would be in arrears. By August 1st, they would owe $1,800 in arrears ($1,200 for June + $600 unpaid from July), as these amounts were not paid by their respective due dates.

• Utility Bills: A homeowner receives a monthly electricity bill for $150, due by the 15th of the month. If they miss the payment for January and then only pay $50 of their $160 February bill, they would accumulate arrears. By March 15th, they would be $260 in arrears ($150 from January + $110 unpaid from February), representing the total overdue amount for their utility services.