Interest

(1) (a) Interest per annum at four percent greater than the statutory rate set forth in section 5-12-101 on any arrearages and child support debt due and owing before July 1, 2021, may be compounded monthly and may be collected by the judgment creditor; however, such interest may be waived by the judgment creditor and such creditor is not required to maintain interest balance due accounts. After July 1, 2021, interest on child support arrearages and child support debt accrues at the interest rate specified in subsection (1)(b) of this section. (b) Interest per annum at two percent greater than the statutory rate set forth in section 5-12-101 on any arrearages and child support debt due and owing on and after July 1, 2021, may be compounded annually and may be collected by the judgment creditor; except that such interest may be waived by the judgment creditor and such creditor is not required to maintain interest balance due accounts. (2) If the judgment creditor seeks interest on child support arrearages as set forth in subsection (1) of this section, the debtor obligor may apply to the court to request that the court find good cause to use discretion in disallowing the calculated interest, or a portion thereof, on child support arrearages. In so doing, the court shall consider but is not limited to the following: (a) Whether good cause existed for the nonpayment of the child support; (b) Whether payment of the interest would result in undue hardship or substantial injustice for the obligor owing the interest; and (c) Whether the disallowance or reduction of interest would result in undue hardship and substantial injustice to the person to whom the interest is owed. (3) The court may determine an equitable period of repayment of any interest and arrears owed, if applicable, as set forth in this section.