Liability Order Help

costcutterkaz

My hubby (the NRP) has just received a letter with ENFORCEMENT across the top, stating that the CSA are applying to a court for a liability order against him.
This apparently covers the period between 11 May 2009 and 04 Mar 2012.
As is customary, the court is as far from us as possible, although from other threads, i believe he could change this if he wanted.
Anyway, my first question is, as he has previously told them he was out of work during this period, not claiming any job seekers etc. are they after him now off their own backs or because the ex has given them information? for example: We have recently opened a shop (partnership not sole)
I have read that they can obtain information from HMRC, but as a new business we have yet to take any money from the business. And it would show on his self assessment.
Also I work part time for an employer, but have been told they can't touch my wages, we don't have any joint bank accounts except the business one. And the house, which is rented, is in my name, as is all the contents because I bought them!!!
What exactly can they do? And what should he do to avoid it?
Grateful for any advice

costcutterkaz

I mean to avoid the court case not the arrears!
We have no savings etc.

MataNui

Things must have gone pretty far if they are after a liability order. They must have offered him a payment plan for the arrears in the past? Ultimately if he has no assets then there isnt much they can do to recover the money.

What you do need to do ASAP is sort the business stuff. If its a partnership then i am pretty sure they can raid the bank accounts since its going to be set up in your names with a 'trading as'. Change the business to a ltd company and transfer all current business assets into the proper ltd company bank account. They cant touch that. He can then take a minimal salary (say about 650 per month) and any assessment on affordability will be based on that. Even the courts wont be able to look at the company assets.

costcutterkaz

MataNui wrote: »

Things must have gone pretty far if they are after a liability order. They must have offered him a payment plan for the arrears in the past? Ultimately if he has no assets then there isnt much they can do to recover the money.

What you do need to do ASAP is sort the business stuff. If its a partnership then i am pretty sure they can raid the bank accounts since its going to be set up in your names with a 'trading as'. Change the business to a ltd company and transfer all current business assets into the proper ltd company bank account. They cant touch that. He can then take a minimal salary (say about 650 per month) and any assessment on affordability will be based on that. Even the courts wont be able to look at the company assets.

This is first we've heard since 2009, the dates refer to when his son turned 16 until his 19th birthday. He took an apprenticeship and, as he was being paid (nominal amount but still) his mother charged him rent!

As for the business, it just makes enough to cover the bills, not pay a salary to anyone! We've only been open for 2 years. We are still entitled to benefits, although they do include working tax, which I've heard they can take?

HappyMJ

costcutterkaz wrote: »

My hubby (the NRP) has just received a letter with ENFORCEMENT across the top, stating that the CSA are applying to a court for a liability order against him.
This apparently covers the period between 11 May 2009 and 04 Mar 2012.
As is customary, the court is as far from us as possible, although from other threads, i believe he could change this if he wanted.
Anyway, my first question is, as he has previously told them he was out of work during this period, not claiming any job seekers etc. are they after him now off their own backs or because the ex has given them information? for example: We have recently opened a shop (partnership not sole)
I have read that they can obtain information from HMRC, but as a new business we have yet to take any money from the business. And it would show on his self assessment.
Also I work part time for an employer, but have been told they can't touch my wages, we don't have any joint bank accounts except the business one. And the house, which is rented, is in my name, as is all the contents because I bought them!!!
What exactly can they do? And what should he do to avoid it?
Grateful for any advice

costcutterkaz wrote: »

I mean to avoid the court case not the arrears!
We have no savings etc.

Avoiding the court case...not much you can do. A liability order just confirms he owes the money they say he does. It doesn't go on his credit record. If he doesn't owe the money he'll have to attend court and prove why he doesn't owe the money. If he accepts the money is owed there is no need to attend court.

If he's got no money, no assets and a low income how about a debt relief order which will write off all his debts. They can't do much against someone who has nothing so I'd look at sorting it out earlier rather than later.

costcutterkaz

HappyMJ wrote: »

Avoiding the court case...not much you can do. A liability order just confirms he owes the money they say he does. It doesn't go on his credit record. If he doesn't owe the money he'll have to attend court and prove why he doesn't owe the money. If he accepts the money is owed there is no need to attend court.

If he's got no money, no assets and a low income how about a debt relief order which will write off all his debts. They can't do much against someone who has nothing so I'd look at sorting it out earlier rather than later.

A debt relief order won't help because of the business, but thanks for the reply.

costcutterkaz

Would taking his name off the business account help any?
I can prove all start up funds came from me not him!

HappyMJ

costcutterkaz wrote: »

Would taking his name off the business account help any?
I can prove all start up funds came from me not him!

Yes it will help. He can still help out with the business but just not be named as a partner. You would therefore have to cover the tax on your tax return. Not the most tax efficient as he doesn't get to use his personal allowance but an idea.

costcutterkaz

Ok, i've just found this:-

https://www.citizensadvice.org.uk/relationships/children-and-young-people/child-maintenance/child-maintenance-2012-scheme/child-maintenance-enforcement/child-maintenance-enforcement-deductions-from-your-bank-account/

If you're self-employed

A regular deduction order won’t be made on an account you use entirely or partly for business purposes, except if you’re a sole trader.

shoe*diva79

I might be asking a daft question, but why can he not just start paying the arrears off? From what you have said he agrees he owes them? Instead of trying to find ways around getting out of it. Either go to court and contest it or he pays up what he was due to pay for his son?

If he contests what the CSA say is due and he has not heard from them since 2009 then he can ask for a copy of his file so he can see how the arrears have come about.

costcutterkaz

shoe*diva79 wrote: »

I might be asking a daft question, but why can he not just start paying the arrears off? From what you have said he agrees he owes them? Instead of trying to find ways around getting out of it. Either go to court and contest it or he pays up what he was due to pay for his son?

If he contests what the CSA say is due and he has not heard from them since 2009 then he can ask for a copy of his file so he can see how the arrears have come about.

We're not entirely sure it's owed, as his son was being paid for his work in the apprenticeship. Also they want the money in a lump sum. And He hasn't any money.
But will definitely ask for a copy of his file.