Can You Be Held in Contempt When You Cannot Afford Court Ordered Payments?

It’s hard enough to stay afloat when bills are piling up, much less with a possible jail sentence hanging over your head. When a family court orders payments that you cannot afford, it is natural to wonder what happens next.

Court orders are a heavy responsibility. But before a judge can hold a person in civil contempt for failing to pay, the judge must consider whether that person has the means to pay.

The North Carolina Court of Appeals recently took on that requirement and the limits of contempt to enforce financial obligations in Collins v. Holley.

Background of Collins v. Holley

Lisa Collins and Corey Holley are the parents of one minor child. The trial court initially awarded primary physical custody of the child to Collins, but in April 2022 it changed the arrangement and awarded Holley primary physical custody, with visitation for Collins.

In July 2023, the court ordered Collins to pay $30,000 toward Holley’s attorney fees in monthly payments of $2,500. She also owed $795 a month in child support and $3,500 in back support to be paid in installments. The opinion calls this “past-prospective” support because it covered time between the filing of a support claim and entry of the support order.

Collins was behind on support and missed her first payment of attorney fees, leading Holley to file for contempt. By the August hearing, Collins was current on child support, but the $2,500 was still unpaid.

The trial court found her in contempt. It increased the attorney-fee obligation to $51,600, payable in three installments of $17,200, and ordered an additional $6,000 in support for the prior period. If she misses any scheduled payment she will be arrested and detained until full payment is made.

Collins appealed.

Could Collins Afford the Payments?

Civil contempt requires willful noncompliance, meaning that the person has the ability to follow the order but makes a conscious effort not to do so. Courts may also look at whether a person can reasonably take steps to get the money.

Collins testified that she made about $3,600 per month. Her usual expenses and support obligations were about $850, far short of the payment of $2,500 in attorney fees.

What about borrowing the cash? Well, there was not enough evidence that she’d be able to obtain a loan, with her testifying that she thought she would need a co-signer, and the record did not show assets she could use to pay.

The Court of Appeals concluded that the evidence did not support a finding that Collins could comply. Without that ability, the contempt ruling could not stand.

Could the Court Increase What She Owed?

With all this in mind, the appellate court also rejected the increased financial obligations. The purpose of civil contempt is to force compliance with an existing order, but it can’t be used to alter that order or penalize someone for disobeying it.

Requiring Collins to pay a whole lot more did not properly enforce the amounts already awarded.

The same problem affected the conditions for “purging” contempt (the steps Collins had to take to get herself out of it). Those conditions must be within a person’s actual ability to meet. The evidence didn’t show she could afford the original payments, let alone the bigger ones.

Can a Future Missed Payment Automatically Mean Jail?

The court also rejected automatic imprisonment for future missed payments. Each alleged violation requires an assessment of whether the person can comply at that time. That’s because a judge cannot just guess what a person’s future income, expenses, and assets will be.

What Does This Mean for Families Going Through the Same Situation?

The Court of Appeals reversed the contempt finding. The ruling was aimed at the improper enforcement measures, not at wiping out the original payment obligations.

The Collins v. Holley case shows how important it is to have evidence of income, expenses, and your available resources.

If you are having trouble making your court-ordered payments or are trying to collect from the other parent, you’ll need to pay close attention to the financials of both parties. But thankfully, you don’t have to figure out how to do this by yourself. That’s because our team is here to help.

Call Woodruff Family Law Group to discuss your situation and learn about your options. Reach out today!