Notice of Delinquency Law and Legal Definition
Generally, a notice of delinquency is a legal notification of an overdue payment. It may be issued in the context, among others, of payment of taxes, court-ordered child support, finance charges, or wages. State laws, which vary by jurisdiction, govern rules involving time period, delivery method, content, etc. of notices of delinquency. Failure to timely respond to a notice of delinquency may result in a lien or garnishment being filed.
The following is an example of a state statute governing notices of deliquency for payment of employee wages:
"If, under a final order, a person is determined to be delinquent in the payment of wages, penalties, interest, or other amounts due under this chapter, the commission may notify personally or by mail any person who:
- possesses or controls any of the delinquent person's assets, including a credit, bank, or savings account or deposit, or other intangible or personal property; or
- owes a debt to the delinquent person.
(b) A notice under this subchapter to a state officer, department, or agency must be provided before the officer, department, or agency presents to the comptroller the claim of the delinquent person.
(c) A notice under this subchapter may be given at any time after the wages, penalties, interest, or other amounts due under this chapter become delinquent. The notice must state the amount of wages, penalties, interest, or other amounts due and owing and any additional amount that will accrue by operation of law in a period not to exceed 30 days and, in the case of a credit, bank, or savings account or deposit, is effective only up to that amount."
