Free Guide to Understanding Arrears Relief Options

What Arrears Relief Is and Why It Matters

Arrears refers to money that is owed but has not been paid. When you fall behind on payments—whether for rent, utilities, child support, or other obligations—that unpaid amount becomes arrears. Arrears relief refers to programs and options that may help people who have fallen behind on these payments catch up or reduce what they owe.

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Understanding arrears relief options is important because falling behind on payments can have serious consequences. Unpaid rent can lead to eviction. Unpaid utility bills can result in service disconnection. Unpaid child support can affect your ability to get a professional license or passport. Unpaid taxes can lead to wage garnishment or property liens. According to the U.S. Census Bureau, about 3.7 million households reported being behind on rent or mortgage payments at various points in recent years.

Many people who face arrears do not realize that options exist to address the situation. Some programs forgive a portion of what is owed. Others restructure payments to make them more manageable. Some provide one-time payments to help you catch up. The type of relief available depends on what the money was owed for, your location, your income level, and other factors specific to each program.

This guide describes different types of arrears relief that exist and how they generally work. It does not determine whether you qualify for any program, nor does it act as an application. Instead, it provides information to help you understand what options may be worth exploring further with the organizations that administer them.

Takeaway: Arrears relief programs are designed to help people address unpaid obligations. Learning about what types of programs exist is the first step toward understanding which options might apply to your situation.

Rental Arrears and Eviction Prevention Programs

Rental arrears—money owed to a landlord for unpaid rent—is one of the most common forms of arrears. According to the National Housing Law Project, millions of renters have experienced rental debt. When rent goes unpaid, landlords may begin eviction proceedings, which can result in loss of housing and long-term damage to your rental history.

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Many communities have created emergency rental assistance programs to help renters catch up on back rent. These programs typically work by paying landlords directly on behalf of tenants. Some programs also cover utilities, moving costs, and other housing-related expenses. The Emergency Rental Assistance Program, funded by federal COVID-19 relief money, distributed over $46 billion to help renters between 2021 and 2023, according to the U.S. Treasury.

Beyond emergency assistance, some jurisdictions offer rental arrears forgiveness or mediation programs. These programs may work with landlords to reduce the amount owed or create payment plans that spread the debt over time. Some states have laws that limit how far back landlords can pursue unpaid rent or that prevent eviction if a tenant is paying a portion of what is owed. A few cities have enacted "right to counsel" laws that provide legal representation to tenants facing eviction, which can sometimes result in negotiated settlements.

To explore rental arrears options, you would typically contact your local housing authority, community action agency, or tenant rights organization. Many of these organizations maintain updated lists of which programs are currently operating and what their requirements are. Eviction prevention services sometimes operate through legal aid organizations, which may provide information about local options at no cost.

Takeaway: Rental arrears relief programs vary by location but often include emergency assistance funds, mediation services, and legal support. Reaching out to local housing organizations is a practical first step toward learning what options exist in your area.

Utility Arrears and Energy Assistance Programs

Utility arrears refers to unpaid bills for electricity, gas, water, or other essential services. According to the Energy Information Administration, over 20 million households in the United States struggle with energy bills at some point. When utility bills go unpaid, companies can disconnect service, which creates immediate hardship—particularly dangerous during winter or summer months when heating or cooling are necessary for health and safety.

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The Low Income Home Energy Assistance Program (LIHEAP) is a federal program that provides grants to help low-income households pay heating and cooling bills. LIHEAP also may cover arrears—past-due utility bills—in some cases. The program is administered through state and local agencies. Each state sets its own income limits and determines how much assistance is available. In 2023, LIHEAP served over 3.5 million households, according to the U.S. Department of Health and Human Services.

Many utility companies also operate their own arrears programs. Some offer discounted payment plans for customers with past-due balances. Others have programs that forgive a portion of arrears if a customer maintains current payments for a set period. Utility assistance programs specifically for arrears exist in many states and counties. Some focus on a particular utility type (electric, gas, or water), while others cover all utilities. Community action agencies often administer these programs and can provide information about what is available locally.

Additional resources include weatherization assistance programs, which may reduce utility bills by improving home energy efficiency, and bill payment protection programs in some states that prevent disconnection if a customer is working toward payment. Senior citizens and disabled individuals sometimes have access to additional utility assistance through aging and disability services programs.

Takeaway: Utility arrears relief comes from federal programs like LIHEAP, utility company programs, and local community assistance. Contacting your utility company or local community action agency can provide information about specific programs available to you.

Child Support Arrears and Modification Options

Child support arrears refers to unpaid child support obligations. The Office of Child Support Enforcement reports that over $113 billion in child support arrears were owed in the United States as of recent years. When child support goes unpaid, the consequences can include wage garnishment, passport denial, driver's license suspension, and collection actions that damage credit. However, several options exist for people struggling with child support obligations.

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One primary option is a modification of the child support order itself. If your circumstances have changed—such as job loss, reduced income, or significant medical expenses—you can request that the court reduce the amount of child support you are ordered to pay going forward. This does not erase existing arrears but may prevent additional arrears from accumulating. Many states provide low-cost or free legal services to help with modification requests. You would typically file a motion with the court that issued the original order, explaining your changed circumstances with documentation such as recent pay stubs, medical bills, or unemployment records.

Arrears settlement or forgiveness programs exist in some jurisdictions. These may reduce the total amount of back child support owed if you commit to making regular current payments. Some states offer settlement programs specifically for cases where the obligor (the person who owes child support) has experienced long-term unemployment or where collection is unlikely. The specific programs and policies vary significantly by state.

Payment plan options allow you to repay arrears over time rather than in a lump sum. These plans are often negotiated with the child support enforcement office. Additionally, if you are experiencing financial hardship, some states allow for temporary payment reductions while you get back on your feet, though this requires court approval and documentation of hardship.

Takeaway: Child support arrears options include order modification, settlement programs, and structured payment plans. Your state's child support enforcement office or a legal aid organization can explain what options your state offers and how to pursue them.

Tax Arrears and IRS Relief Programs

Tax arrears refers to unpaid income taxes owed to federal, state, or local tax authorities. The IRS reports that over $600 billion in individual income tax debt is outstanding nationally. Unlike some other forms of arrears, tax debt carries distinct consequences including wage garnishment, bank account levies, property liens, and passport revocation for certain tax debts. However, the IRS and state tax authorities offer several options for managing tax arrears.

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One primary option is an installment agreement, which allows you to pay your tax debt over time in monthly payments. The IRS offers short-term agreements (for balances under $25,000 payable within 180 days) and long-term agreements (typically spreading payments over 5 to 6 years). You can set up these agreements online, by phone, or by mail. According to IRS data, millions of taxpayers use installment agreements each year.

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