Capital Contribution Order. Living overseas and need advice

Quashing Orders. Stopping Enforcement. Applying for more time to pay. Disputing a liability.
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roydrunner
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#1 Capital Contribution Order. Living overseas and need advice

Post by roydrunner » 10 Apr 2014 15:05

Hello everyone,

I am wondering if anyone could advise regarding this situation.

I was involved in a trial about 4 years ago for which I received legal aid. Immediately after the trial I payed an income based contribution order of £7000, as a lump sum, thought that was the end of it and got on with my life. 3 years ago I moved to Sweden for a new job with my family and rented out my property in the UK, this doesn't cover my mortgage costs so I transfer some money back each month. Anyway, about a week ago I got an email from my tenant saying they had received a letter from the County Court and would forward it on to me. The letter had a court stamp and was entitled 'Recovery of award order and had a N322a form stapled to it. Stapled to this was a photocopy of a letter from Rossendales Ltd entitled, 'Capital Contribution Order' saying that I needed to pay a further £7300. This was dated July 2013 and was the first I had ever heard of the matter. I called Rossendales and they stated that I should call the Solicitor named on the letter, a company called Shakespeares. First of all I am upset that I was not aware that this charge would be levied on me, I also very much disagree with the details of the, 'means test' on the form. They are claiming that I have equity of £40,000 in my house, which I do not and also that I have £6000 other assets, which I do not. I called the solicitor anyway and she said that I should email her within the next few days to indicate when I could pay and in what type of installments, lump sum combination.

Does anyone have any idea what my options are here. As I said, I am non-resident in the UK, I have informed the solicitor of this fact and provided proof of this. Things are complicated by the fact that I am moving to Africa in August for a new job!

Help gratefully received and thanks in advance.

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jasonDWB
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#2 Re: Capital Contribution Order. Living overseas and need adv

Post by jasonDWB » 10 Apr 2014 15:39

If you are non UK resident then the capital contribution order dies. It cannot be enforced outside England & Wales.mit becomes what is called a perpetual debt

Rossendales had a little dabble with trying to recover capital contribution orders and I understand it was not successful. They went round to people who did not have what they wanted and in any event they had not been means tested for it.

Here is more. http://www.dealingwithbailiffs.co.uk/ca ... -order.htm
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roydrunner
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#3 Re: Capital Contribution Order. Living overseas and need adv

Post by roydrunner » 10 Apr 2014 16:30

Thanks Jason,

Do you have any link to any document or area of law relating to your point;

'If you are non UK resident then the capital contribution order dies. It cannot be enforced outside England & Wales.mit becomes what is called a perpetual debt'

I would like to be able to reply to the solicitor to this effect if possible. I still have property in the UK, could they not move against this as an asset through a 'charge order' for example?

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jasonDWB
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#4 Re: Capital Contribution Order. Living overseas and need adv

Post by jasonDWB » 10 Apr 2014 16:36

The law is Regulation 19 of the Criminal Defence Service (Contribution Orders) Regulations 2009. It's effect only applies to England & Wales.

If you have UK registered land then it's vulnerable to a legal charge, so you should put all UK property into a Family Protection Trust and make a Lasting Power of Attorney. This is how most UK expats manage their landed wealth.

A forum about unlawful bailiff action is not a place to seek advice on FPTs and power of attorney but this method is how my UK assets are held because I work overseas and I can instruct my trustee or attorney to move property and assets around as needed without me having to go to the UK.
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roydrunner
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#5 Re: Capital Contribution Order. Living overseas and need adv

Post by roydrunner » 10 Apr 2014 17:00

Would it be worth, do you think, for me to email the solicitor saying I completely disagree with the assessment of capital, which I do and that I wish to be re-assessed or do you think that it would be sensible to say that the state that the law only applies to England and Wales and therefore I do not believe myself to be liable?

Also, if you have a link to how to set up a Family Protection Trust then that would be amazing.

Thanks for the help.

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jasonDWB
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#6 Re: Capital Contribution Order. Living overseas and need adv

Post by jasonDWB » 10 Apr 2014 18:00

You might be able to question the assessment but it will show you have landed property and that will be included in the new assessment.

If you need to protect property from an imminent charging order the procedure for this to complete forms you can download from HM Land registry website. They are form AP1 to make an application in the land register, ID1 to cover your photo ID documents and TR1 to transfer the property out of your name and into the name of your trustee. If you only own a share of the property then use form TP1 to transfer your share of the property to the name of your trustee. Any licensed conveyancer can do this for you for a small fee and I can introduce you to a property lawyer if needed.

That means you no longer own the property. You only have a life interest in it and you can set your trust instrument to set the terms of the use of the property. I can draft a trust for you but you need to decide the mechanism of the trust and the names of your trustees. Also whether you want to be able to substitute the property for an interest in another property or convert it to an investment or rental property to provide you with an income paid into the trust while you are working abroad. This means a legal charge cannot be secured to the property because life tenants (a person having only the use of the property) cannot be charged because they don't own it.

This type of trust structure works well if the country you are working in is governed by Sharia law (mostly Northern Africa and Middle East) because the income generated by the trust is tax free.
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roydrunner
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#7 Re: Capital Contribution Order. Living overseas and need adv

Post by roydrunner » 10 Apr 2014 19:00

Thanks Jason,

I am not, I believe subject to an imminent charging order, or I have nor been informed about this by the solicitor working on behalf of Rossendales, that I spoke to. Surely they would have to inform me if a charging order was in place or being planned. Am I correct in thinking that to issue a charging order they would first need a CCJ, which it would be difficult to serve on someone living overseas? I am aware that a CCO can only be put in place if you have assets of over £30,000. This I dispute, I think the equity in my house in the UK is less than this. I shall respond to this effect and buy some time whilst I investigate the issue of placing the house in trust.

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jasonDWB
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#8 Re: Capital Contribution Order. Living overseas and need adv

Post by jasonDWB » 10 Apr 2014 20:08

Rossendales solicitor cannot apply a charging order. Only the legal services commission can.

You don't get any warning if a charging order and the legal services commission does not need a CCJ. A CCO is statutory debt.
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roydrunner
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#9 Re: Capital Contribution Order. Living overseas and need adv

Post by roydrunner » 10 Apr 2014 20:26

Thanks again for the advice Jason. Does your last email mean that basically unless I can prove that I do not have the £30000 assets then I will have to pay the £7300? If they issue a charging order, will I still have the opportunity to pay the money if necessary before the order is in place?

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#10 Re: Capital Contribution Order. Living overseas and need adv

Post by jasonDWB » 10 Apr 2014 20:50

I can't answer that because I have not researched CCOs in that much detail. Have a look at the regulations and see whT you make of it and present it to a solicitor and see what he thinks.
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roydrunner
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#11 Re: Capital Contribution Order. Living overseas and need adv

Post by roydrunner » 10 Apr 2014 20:54

Thank you for your advice anyway. I have written them a letter anyway asking for clarification of a number of points and have stated that I don't feel I meet the criteria for having to make a contribution. The worst that can happen I would think is that they come back at me and say I am wrong.

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