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Deduction Orders : Lump Sum/Regular

CMS have the power to remove funds from a bank/building society account in two different ways:

  •  A REGULAR deduction order involves the removal of funds each week/month ,
  •  A LUMP SUM deduction order involves funds in an account being frozen and then removed in one single transaction.  

These orders can be made without an application to court and can be taken from a variety of accounts.

Appealing a Deduction Order:

A Lump Sum Deduction Order can be appealed to a court, using an N161 form, but applications should be made with caution!   There are limited circumstances in which an appeal may be valid - and costs may run into thousands of pounds if your application is deemed invalid.  

There is a very specific process to follow, within a very strict timeframe, and the information often given with the N161 form is misleading, and inaccurate.  Courts have been known to refuse appeal applications as they also fail to understand the process.  A rejected application may have significant impact on your appeal. 

It is vital that you seek advice if you are considering an appeal against a Deduction Order.  

Key Facts :

  • Deduction Orders can be imposed against joint accounts as well as sole named accounts, and certain types of business accounts.  
     
  • Deduction Orders should be used only when the NRP has demonstrated a failure to pay maintenance by any other method.
     
  • The intention is to use regular Deduction Orders against bank accounts, and lump sum Deduction Orders against building society/savings accounts.  
     
  • The Paying Parent/NRP may request a review of the order if their circumstances change.  There is no obligation for the order to be reviewed.
     
  • Deduction Orders are regularly imposed where a Deduction from Earnings Order is not appropriate. 

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