Contribution order

[Guest]

hi, I’ve recently been convicted of an offence at court and I’m now subject of a contribution order to the sum of £40,000. Now the rules within the Legal Aid Agency are a total disgrace and as things stand they plan to take £40,000 equity from my home address, even though I have another 4 rental properties which they agree are in massive negative equity. Initially the LAA thought some of my rental properties had equity and were going to take £3,700 from them. But after I got two estate agents to value the properties they agreed there was in fact about £70,000 negative equity. However rather than take all properties collectively and work out if I have any equity left, they are simply now disregarding the rental properties, and treating them as ‘nil’ and still going after the equity in my house. My question refers to another post which stated that if the LAA can’t find the initial signed Legal Aid application then then i can avoid this payment. I’m in a desperate position and if this is the case I’d refuse to pay. But is this true? I’ve asked for a copy of the signed agreement and they only sent out a form to which I would have signed stating my solicitor will have the original. Can they enforce this debt without proof I signed this agreement.

[2222]

hi, I’ve recently been convicted of an offence at court and I’m now subject of a contribution order to the sum of £40,000. Now the rules within the Legal Aid Agency are a total disgrace and as things stand they plan to take £40,000 equity from my home address, even though I have another 4 rental properties which they agree are in massive negative equity. Initially the LAA thought some of my rental properties had equity and were going to take £3,700 from them. But after I got two estate agents to value the properties they agreed there was in fact about £70,000 negative equity. However rather than take all properties collectively and work out if I have any equity left, they are simply now disregarding the rental properties, and treating them as ‘nil’ and still going after the equity in my house. My question refers to another post which stated that if the LAA can’t find the initial signed Legal Aid application then then i can avoid this payment. I’m in a desperate position and if this is the case I’d refuse to pay. But is this true? I’ve asked for a copy of the signed agreement and they only sent out a form to which I would have signed stating my solicitor will have the original. Can they enforce this debt without proof I signed this agreement.

I looked in Criminal Defence (Contribution Orders) Regulations 2009, and I think it would be useful for you to read those regs, so as to help you focus your thoughts. http://www.legislation.gov.uk/uksi/2...0093328_en.pdf

I could see nothing in there requiring the LAA to produce a copy of the signed form. I have not found the other post you refer to, so I don't know what reasons were given to you. It may be correct advice, but I'm not very hopeful. If you make enough fuss, presumably the solicitors can retrieve their files and produce the form, anyway, so it may not have any practical effect.

When you made the original application for legal aid, you should have completed a form setting out your income and assets. I assume the £40,000 is based on that form.

The assessment of your capital is based on regulations 12-18. That appears, as you say, to require the LAA to treat each asset in isolation (ignoring any with negative values) and not take any negative equity off the total. That seems very unfair to me, and I do wonder whether it falls foul of the HRA, as it inflates your net wealth. What would your net total position be if the negative equity were taken into account?

Challenging the legality of the regulations, or even the LAA's interpretation, is a daunting task. Your case could take years (possibly including a referral to the ECHR). I don't see how you could do that as a litigant in person.

[2222]

Sorry, wrong regulations. These seem to be the right ones.

http://www.legislation.gov.uk/uksi/2013/483/made

[Gary111]

If my rental properties were in fact taken into account then I’d be in negative equity. I’m planning on making an appeal, but I’m not very hopeful. I’m thinking of going down the financial hardship route. Which is actually true. I’ve currently got an unfinished extension to the rear of my property which is reducing any sale price. Then due to the fact the LAA put a purchase order on my house I can’t remortgage and finish the works which have now been this way for 4 years. I’m in a bit of a financial crisis and this contribution order is going to effect my standard of living for many years.

[2222]

You could apply for a review under 39.1 of the regulations.