Debt offset (CS) 277-04110000

Case 1- ‘K’ is owed $20,000 by ‘J’.

Case 2 – ‘J’ applies against ‘K’ due to change of care.

Case 2 has an ongoing liability of $500 per month and no maintenance arrears. The customers agree to off sett all of Case 2 liability against the debt remaining on Case 1. An Ongoing Offset for 100% of the Case 2 liability should be entered. Each time the liability is raised on Case 2, the maintenance debt on Case 1 will be reduced by $500. The result of this offset arrangement is that ‘K’ (the payer in Case 2) does not have to pay any maintenance to ‘J’ until the debt is paid off.

Case 1 – ‘E’ is owed $5000 by ‘F’.

Case 2 – ‘F’ is owed $1500 by ‘E’.

Both cases are ended due to the child turning 18. A One-Off Offset is applied for the amount of $1500. The offset reduces the arrears on both cases by $1500. The Case 2 debt is cleared in full and the Case 1 debt is reduced to $3500.