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Selling house to recover child support debt.

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Letter from Lawyers acting on behalf of the Official Receiver

Hello.  I haven't posted here for a while, but my issue still stands.  This issue has been ongoing since 2007.
My partner's children as well and truly into their adulthood.  Way back in 2007, my partner had a COA.  He was deemed to have a capacity to earn way above what he was actually earning.  He paid child support, and also made non agency payments.  The mother of his children denied ever having received these non agency payments,  meanwhile the debt accrued because he wasn't making the $1250 per week deemed from capacity to earn. So the debt was set at at $28,704.  He was ordered to pay $10,000 by certain date, which he did, after selling my car. However because of the non agency payments made, he disputed the remaining balance.
He went to the SSAT. They agreed to reduce some of the debt based on the receipts provided for non agency payments.  (School camps only).
By this time, he was so overwhelmed, he pushed the issue under the carpet. There were a number of issues where natural justice was not applied, and errors in decisions were made.
Flash forward to a court hearing where he signed over his half of our house to the Insolvency Trustee (Official Receiver) , not really understanding the implications for his new partner and all his children.
The Insolvency Trustee (Official Receiver) have a caveat over his half of our house.  In previous correspondence, it was stated that if he paid minimal amount off the debt, that the house would be safe.  He has failed to do this, and because of his distress, and he didn't appeal the subsequent SSAT decision.
In a previous attempt to sell the house by the Insolvency Trustee received a valuation that was just enough to cover payout of the mortgage, with none left over the pay the CSA debt, so they left the issue alone. We recently received a land valuation, and it remained the same for the previous few years.
Come today, I receive a summons. (Because I own half the house with the Insolvency Trustee (Official Receiver).
My options are as follows:
I purchase the half interest for market value;
I arranged for someone I know to purchase the half interest for market value;
I agree to join the Official Receiver is a sale of the property on the open market with vacant possession;
If none of the above occur, a court application will be made to sell the whole of the property.
What do I do?  I have two young children. This is highly distressing for me.
Contact your Federal MP immediately and explain the situation. I would also go to the media and go in hard against the CSA.

Executive Member of SRL-Resources, the Family Law People on the site (Look for the Avatars).   Be mindful what you post in the public areas. 
This thread raises some extremely complex questions in law that will take time to step through.

I wondered why you allowed him to sell your car and in fact why he would sell YOUR car at all to satisfy CS? It is probably a mute point, but I think some proper advice at the beginning may have helped navigate through what is a very stressful time for you now.

Have you raised the topic of paying out the official assignee with some sort of settlement offer in the order of 30c to 50 c in the dollar for the debt to the Child Support, which is assumed to be one or all of the debts? Is there some additional debt other than Child Support and is it a lot or similar amount?

Are you on good talking terms with the assignee?

Is your partner working?

Is any money going to the assignee?

Did you acquire the property and mortgage as Joint Tenants or Tenants in Common…? This would be seen in the mortgage documents and is relevant to the proportion of legal interest in the property. I suspect the bank will be taking an interest if there is a registerable interest in the property behind the bank and if there is an 'all monies' clause in the mortgage documents will entitle the bank to take all proceeds if they get involved. It is also clear that banks are tightening up lending both from new rules that came in late last year about all sorts of things like the number of children you have, owner equity ratios increasing and ability to repay rules tightening. So what I am eluding to is that it is harder to borrow funds and prices are starting to drop not rise.

Who is paying the mortgage currently and is it up to date or in arrears?

I have a number of other questions but for the moment while we do a little more looking into this, the questions above suffice.

I note my collegue comments above but going in hard against the CS who have an unlimited supply of money, time and legal advice seems a recipe for an entrenched and deepening conflict. I am more inclined to tread softly and get some facts together that support some serious miscarriage of justice and an overreach of power by the agency. Interestingly I had a case today, where Child Support people made a determination on some vapourware and nothing that the Acts or Guide suggested was the corrcet position and the Payer was told some nonsense. It takes time, effort and a lot of angst for Payers to sort out erroneous advice given by Child Support part of Centrelink. There are too few of us that keep these agencies to account…

Executive Secretary - Shared Parenting Council of Australia
 Was my post helpful? If so, please let others know about the FamilyLawWebGuide whenever you see the opportunity
 
Secretary SPCA raises some good point about the CSA - they will win regardless. If you can, cut a deal with them, it will be to your benefit. I would still contact your local Federal MP just to see if they can help in the negotiation but be prepared to be dismissed as a deadbeat dad (not paying VSA).


¨Way back in 2007, my partner had a COA.  He was deemed to have a capacity to earn way above what he was actually earning.¨

Why was he deemed to have a capacity to pay way above what he was earing? Did he change jobs and was there a medical reason?

¨He paid child support, and also made non-agency payments.  The mother of his children denied ever having received these non-agency payments,¨

Were these payments made in cash or into her bank account? In short, can you prove payments?

¨Flash forward to a court hearing where he signed over his half of our house to the Insolvency Trustee (Official Receiver) , not really understanding the implications for his new partner and all his children.
The Insolvency Trustee (Official Receiver) have a caveat over his half of our house.  In previous correspondence, it was stated that if he paid minimal amount off the debt, that the house would be safe.  He has failed to do this, and because of his distress, and he didn't appeal the subsequent SSAT decision.¨

This is why you should contact your MP. How much of the CSA debt is interest?

I strongly recommend that you have separate bank accounts and credit cards.

You can also contact the Minister responsible for the CSA:-

The Hon Michael Keenan MP
PO Box 6022
House of Representatives
Parliament House
Canberra ACT 2600

Telephone:
(02) 6277 7200
Fax:
(02) 6273 4406


Executive Member of SRL-Resources, the Family Law People on the site (Look for the Avatars).   Be mindful what you post in the public areas. 
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