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VIC Child Support Agency Debt

Discussion in 'Family Law Forum' started by JohnL, 29 June 2015.

  1. JohnL

    JohnL Member

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    I have a debt to CSA (Child Support Agency) for $12,000 and have been paying it off at $200 a month at this stage as that is all the extra I can afford over the normal monthly payment. They have called me and told me that I have to pay at least 1,000 a month extra to pay it off or they will take further action (the message says "If you do not enter a satisfactory payment arrangement then DHS (Department of Human Services) Child Support can take enforcement action. This action may include: - collecting from your employer, - intercepting your tax refunds, - collecting money from Centrelink payments, - litigation against assets you own, and - preventing any overseas travel via Departure Prohibition Order").

    Can they compulsory make me pay far more than I can afford even when I am making an attempt to pay it off?

    I'm interested to know what the rules are, would be happy to pay off the debt if I had the capacity but they don't seem to want to listen to that, so any advice or help is very much appreciated.
     
  2. AllForHer

    AllForHer Well-Known Member

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    Realisitically, the court would probably apply interest to these kinds of debts, and at $12,000, a monthly repayment of $200 would barely cover the interest, so it makes sense for the CSA to pursue higher repayments.

    However, it's unlikely the court would permit the CSA to drive a person to financial hardship.

    I really think you should speak to a legal aid solicitor about this matter so they can assess your position properly. Has CSA indicated what they are seeking in minimum repayment?
     
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  3. JohnL

    JohnL Member

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    Their statement was "we are requiring you to pay an additional $513.96 to $642.46 per fortnight to be considered in a satisfactory payment arrangement." The absolute most I can afford is an extra $350 per month so have replied back with that.

    The conversation yesterday with CSA was that I should cancel my medical insurance and cancel my golf - country club so not expensive 100 per year) as that was considered unnecessary and that I should pay absolute minimum on my credit card debts which might get me to $500 per month (I don't pay much above the minimum - maybe $30 per card to try and reduce the debt).

    Can they dictate these things as to how one lives if the offer of $350 per month clears the debt within about 4 years?

    Thanks for the help.
     
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