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<p><del class="ministerial">The department publishes an annual estimate of child maintenance
arrears in the Client Funds Account that sets out the three categories of collectability.</del></p><p>
</p><p><del class="ministerial"><strong>1. Likely to be collected:</strong> Debt which
meets criteria indicating that the Department has a good chance of collecting it.
The criteria are:</del></p><ul><li><del class="ministerial">At least one payment made
against the outstanding arrears in the six months prior to the reporting date.</del></li><li><del
class="ministerial">At least one payment made in excess of the scheduled amount</del></li></ul><p>
</p><p><del class="ministerial"><strong>2. Potentially collectable:</strong> Debt
which meets criteria indicating that the Department has a reasonable chance of collecting
it. The criteria are:</del></p><ul><li><del class="ministerial">The existence of a
payment schedule at any point during the six months prior to the reporting date, even
though no payments were received in the period.</del></li><li><del class="ministerial">For
recent arrears, i.e. aged three months or less, the receipt of at least one payment
against those arrears after the reporting date.</del></li><li><del class="ministerial">Debt
on cases where enforcement action such as deduction directly from the non-resident
parent’s bank account, or forcing the sale of their property is likely to be successful.</del></li></ul><p>
</p><p><del class="ministerial"><strong>3. Uncollectable:</strong> All remaining debt
which does not meet the criteria for either of the other categories.</del></p><p>
</p><p> </p><p><strong><ins class="ministerial"> <p><ins class="ministerial">The Department
aims to ensure parents fulfil their obligation to make financial provision for their
children and that maintenance is paid accurately and on time. Our priority, as outlined
in our published Arrears and Compliance Strategy is to collect on-going maintenance
and arrears in cases where there is still a child who stands to benefit.</ins></p><p>
</p><p><ins class="ministerial">Child maintenance arrears are categorised in the Client
Fund Account according to the likelihood of them being collected. We consider action
on all cases that fall into the collectable and potentially collectable categories
of debt. Where we are unable to take enforcement action, for example where we cannot
trace the non-resident parent, cases will fall into the uncollectable category and
will be reviewed as resources allow.</ins></p></ins></strong></p><p> </p><p> </p><p>
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