Paying back Legal Aid?

rapper57

Hi & thanks in advance

My partner currently owes LSC just over £12K as a debt against her property from her divorce. Interest is accrued at £1.56/day (8% interest!!!!!). I would like to get some help about the best thing to do about repaying this money. Is it possible (best) to get a small mortgage to pay back the money and then pay back the mortgage at a smaller interest rate? Any other ideas would be apreciated. She has no intention to sell the property and will leave it in her will for her next of kin to sort out in the future.

Cheers

NAR

I would have thought a mortgage would be the cheapest way of raising the money. She would have to prove to the bank/lender that she has the income/ability to meet the payments though.

Pee

Would she be able to repay the mortgage? The advantage of the LAB is that it doesn't have to be repaid, so if she lost her job or anything else horrid it wouldn't be an overhead. Also, interest rates are low now and so she probably could do better, but who knows what the future holds.

If I was her, I'd try saving some money and paying a chunk off.

amani_2

i owe 4k to legal aid after my divorce and the transfer of the house into my name. I was told that the money would be paid back when i sold my house, they have put a charge on my house. I paid a chunk off 2k.
They have now written and told me that the money has to be paid back to them on a monthly basis and have send me an expediture form to fill in, apparently they have changed the way in which they have the money paid back to them now.

1984ReturnsForReal_2

£1.56 is not 8%

weths

I have just been in touch my my legal aid, i have a charging order for around 5k on my property after my divorce...(why did nobody tell me i could do it myself!?) They are sending me an income and expenditure form. I have asked them to freeze the interest, which they wont but they are considering a reduction. I would suggest that your partner calls them and explains things. I think with all debts perhaps the louder we shout the more gets done. All debt companies etc have the ability to reduce your debt or freeze the interest. Its at their discretion as far as im aware.

Georgie4

weths wrote: »

I have just been in touch my my legal aid, i have a charging order for around 5k on my property after my divorce...(why did nobody tell me i could do it myself!?) They are sending me an income and expenditure form. I have asked them to freeze the interest, which they wont but they are considering a reduction. I would suggest that your partner calls them and explains things. I think with all debts perhaps the louder we shout the more gets done. All debt companies etc have the ability to reduce your debt or freeze the interest. Its at their discretion as far as im aware.

There is only a certain amount of discretion as the money you owe was used out of the civil legal aid budget for whatever year it was you were represented. They cannot reduce the interest to zero or the legal aid budget would not be able to function and help other people who will be in the same situation you were in:rolleyes:

rapper57

Sorry for my lack of mathimatical knowledge. If its not 8% as they informed me. What percentage is it roughly?

rapper57

1984ReturnsForReal wrote: »

£1.56 is not 8%

Sorry for my lack of mathimatical knowledge. If its not 8% as they informed me. What percentage is it roughly?

chewmylegoff

rapper57 wrote: »

Sorry for my lack of mathimatical knowledge. If its not 8% as they informed me. What percentage is it roughly?

£1.56 a day = £570 a year

£570/£12000 x 100% = 4.75%

that assumes that the interest is simple interest. if the interest is compounding [i.e. on monday you get charged interest of 4.75% on £12,000 (£1.56); on tuesday you get charged interest of 4.75% on £12,001.56 (£1.5618)] then the APR is going to be a bit hight but i can't be bothered to work it out exactly. It would be under 5%.

You sure it isn't £2.56 a day? that would be almost exactly 8% per annum.

kelly1234

Hello, just come across this posting, I am also in the situation of having a huge charge on my property, LSC told me last year that they cannot freeze interest charges on amount outstanding (£25K!) even though i do not have the means to repay it. As I am unable to be able repay the monies in the forseeable future, the interest accrued on the figure will probably be more than my actual legal aid bill! The interest rate is 8%.