Legal Aid Repayment

[Diamond54]

I'm looking for help and advice re above. Approximately 20 years ago I had to use legal aid in a divorce case.

I have now had a letter from the Legal Services Commission asking me to either repay the whole amount or complete a form deferring payment, which would then mean that my old legal aid bill of £2905 will be deferred and accruing simple interest at a rate of 8%.

 

According to the letter there is a charge on my home and therefore it would seem that the "loan" is secured against my home and if I do not pay the whole loan back, interest will be accrued. I will then not be able to sell my home, or borrow money against it without first paying the "loan" back.

I'm not in a financial position to be able to pay the money back but am petrified at how much I could have to pay eventually with interest.

 

I can't remember being made aware that I would eventually have to pay this and so it has come as a nasty shock.

 

Noone I've spoken to has ever heard of this, even people in the same situation as me who have had to use legal aid at some point in there life.

 

Can anybody please give me advise on where I stand and what I should do?

[The GodMother]

Have you spoken the legal aid board over why you need to pay this back?

[Diamond54]

havent as yet as only got letter today, just wanted to see if anyone else had been in same position and what they did about it. i dont feel i am in any better position to pay it now as i was then, 20 yrs ago. will ring them tomorrow i think and see what they say, have you heard of it before?

[The GodMother]

No l have not heard of this before. I ahve used legal aid and never been charged.

 

I am going to PM someone about this who may help.

 

Chrissi

[The GodMother]

I have PM'd Curly ben an PT2537 for you.

 

Chrissi

[Diamond54]

thanx so much for your interest, let you know how i get on cheers Heather

[Edz11]

The statutory charge applies when your proceedings involve the preservation or recovery of property. So the divorce proceedings in your case may well have included the children and the house and the house bit has led to the statutory charge.

 

You should have been told about this at the time of your divorce but a lot of solicitors did not point it out back then. Legal aid wasn't "free" if you were arguing over property - it was just paid back later. From distant memory I think the very early cases were non interest ones. Nowadays, simple interest is added from the date of the debt.

 

What I'd do is write and say that you understood at the time that the charge would be restricted to the aid granted and that interest would not be added. The reason that this has raised itself as an issue now is that the sprogs have left home (or have ceased full time education) and the legal aid board want repaying. If you chose to delay payment they want interest. This isn't me moralising - but just think - you've had an interest free loan from the taxpayer for 20 years. Starting to add 8% simple interest now isn't unreasonable.

 

Paying it back... the interest is about £240 per annum. So if you pay that figure (£20 a month the debt won't grow. Add £20 a month to that £20 and it will be paid back in about 15 years. (can't find my calculator...)

[The GodMother]

Edz11.

 

Just a quick question as l dont quiet understand what u have said.

 

I went threw a divorce, it lasted 4 long long years, was on legal aid with no children or property will i have to pay it back?

 

Dont my to thread hijack buy the way thought you would not mind if it wass a quick question.

 

Chrissi

[Edz11]

Godmother - nothing to pay back at all.

 

Why 4 years if there were no kids or property??

 

The idea behind it is that if Mr and Mrs x decide to spend £x arguing over who is to have custody of the house and the Da Vinci why should the public pay the legal costs? Which sounds reasonable to me (and I have a small statutory charge to pay over my my legal costs from my divorce over 10 years ago). What is unfair is that the bill for child contact etc is thrown in with the property part of the bill. But that's another story...

[The GodMother]

It took 4 years as he would move about alot.

 

We would get an address for him and attempt to file the papers within 48 hours and he would then move out the day the baliffs attempted to file with him.

 

Needless to say l got very cheesed off and filed at his parents house with 20 minutes of his parents signing for the docs he had phone my solicitor saying where he was. it was all paperwork from there. This eventually finished 1st Dec 2006 after starting July 2002.

 

Glad to hear there wont be a charge for me ty Edz11

 

Chrissi

[Edz11]

Chrissi - why he delayed it is strange. Just meant he got more costs!

[The GodMother]

He did not pay costs as he is was also on legal aid and no solicitor.

 

It is not really strange behaviour for him he is still up to his normal tricks with his new wife which l was told he married while he was still legally married to me which also does not suprise me.

 

Chrissi

[Edz11]

I think thats called bigamy. It's very generous of you not shopping him to the Police!

[The GodMother]

Oh its not generous l just cant prove it as l found out threw someone who hates him and l am trying to sue him for the money he owes me but we cant find him so l cant file any court papers.

[Edz11]

The best revenge is to have a happy and contented life after divorce. Ignore everything that happened before and never concern yourself with what happens to them. It worked for me!

[Goldlady]

I was under the impression that the solicitors who claimed the legal aid on your behalf had to repay the legal services commission out of the proceeds before paying the balance to the client. That is certainly the way things work these days.

[The GodMother]

Yes l am enjoying the revenge.

 

Goldlady that is what l also assumed.

[Edz11]

It depends on how you get the money...

 

Wife stays in home with kids. She gets all or part of the house under the settlement. Solicitors claim legal aid from the LSC. LSC then put a charge on the house so that when it is sold or another event takes place then the LSC is repaid.

 

Wife leaves home with kids. Is awarded half the proceeds of the house. Husband remains in house. She is paid £x by the husband and the solicitor deducts legal aid from the cash before paying her (that is effectively what happens).

 

In my case I owned 100% of my house before marriage. At divorce I kept 50% but my ex was able to "borrow" that 50% until the kids reach 18. I did most of the legal stuff on the divorce myself so have a small legal aid bill to repay. In (at most) three years time she has to pay me 50% of the value of the house. From that the LSC will be repaid my small charge + interest. She will have to pay an enormous LSC charge + interest. So she has to pay me and the LSC a small fortune. (Why am I worrying about her problems when we have spoken five times in ten years??).

[Classic-car-lover]

Well done