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Is legal aid a loan that has to be re-paid?

  • feelfoolish
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15 Apr 10 #198542 by feelfoolish
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Tuedid - would she be using it for a mortgage? if not then the SC (legal aid) will have to be repaid - if she is not buying a property immediately then the solicitor should hold the money until such time as she does and then the charge will be put on her property and accrue interest at 8%.

My X has tried to evade SC by having wording on Consent Order which has been revoked by LSC so he has to pay his costs back. And quite rightly so - decent paying people have to pay theirs.

Hope all goes well!!:)

  • .Charles
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16 Apr 10 #198630 by .Charles
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What you are describing is the facility to defer the Statutory Charge on a property which will be used for the benefit of the assisted person and his/her dependants. It merely delays the repayment of the Statutory Charge rather than avoid it completely. Simple interest will accrue at a rate of 8% per annum.

What is certain is that she will have to pay back her costs up to and including the amount that she recovered or preserved with the benefit of her public funding. If she recovered £10k and her costs were 8k, she would pay it all back and if she recovered £7k and her costs were £8k, she would only have to pay back £7k.

On what basis does your partner's ex want him to pay her costs? Was a costs order made at the final hearing?

Charles

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17 Apr 10 #198868 by tuedid
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We dont know if she is using it for a mortgage (no communication for over a year). She does not work so how could she get a mortgage? She has been living in council accommodation for over 10 years now.

A letter has arrived today and it is an amendment to the Legal Aid Certificate and she has now been granted full representation. Looks like we are in for a bumpy ride.

  • Notgiving up
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17 Apr 10 #198891 by Notgiving up
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am i reading this right, we are now divorced, finances settled, just kids to be sorted. ex was eligible for legal aid but elected not to take it as she got 120k settlement. Can she now claim legal aid for the contested children proceedings which will now happen? Is this fair as she is sitting in a 250k house,all the posessions and now playing at restricting contact?

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17 Apr 10 #198894 by .Charles
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Why was the certificate amended? It sounds as though the finances are resolved in which case does the amendment deal with issues involving children?

If this is the case, the Statutory Charge will apply to any costs incurred under the certificate, whether this is in relation to financial issues or otherwise.

If the monies recovered were limited to £7k, this is the amount she will have to repay therefore all other funding will be free unless her financial circumstances change or her certificate is revoked.

Charles

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17 Apr 10 #198897 by Notgiving up
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Ex never took the legal aid as she didnt liket the solicitor and knew it was only a loan. My question now is the finances are settled and divorced can she re-apply for legal aid for the application I made for shared residence for the children?

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17 Apr 10 #198965 by .Charles
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In that case the Statutory Charge cannot take effect.

When applying for legal aid you do have to declare your assets. If you have more than a certain amount of cash savings the balance will have to be paid to the LSC prior to public funding being granted. The amount of equity in the property can also have an effect on eligibility.

If a person misrepresented their application for public funding the certificate will be revoked which means they will have to pay back any monies expended to the LSC. The solicitor who is acting can also pursue their client for the balance of the monies between the hourly rate paid by the LSC and solicitor's usual rate.

Charles

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