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Over payment in tax credits?
direstraites
Posts: 100 Forumite
I was over paid in my tax credits and although im still getting some as we are still well below the threshhold,its at a reduced rate so they get there money back,should i have included this into my bankruptcy? 
If i do have to does that mean my tax credits will stop? :eek:
If i do have to does that mean my tax credits will stop? :eek: 
bsc no 162 0
Comments
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I incuded mine in the BR, but not sure what they do about it. Did you keep tax credits informed about your income??? They cant stop your tax credits from being BR, infact you dont need to tell them.
Contact your OR, and explain. They can often sort it out that day, or at least get more info for you. BSC member 137
BR 26/10/07 Discharged 09/05/08 !!!
Onwards and upwards - no looking back....0 -
I have been overpaid with working tax credits and it is my understanding that I will have to pay this back after BR. I have been sent paying in slips to pay back £5 per week, which means a weekly trek to a PO as no cheque account after BR. I didn't think I could include the WTC in my bankruptcy. As it happens mine is locked away in my very overdrawn bank account so I haven't actually made use of it.0
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We still get a half decent ammount even after they have taken there reductions(im off long term sick and wife isnt on a high paid job) and the i+e was worked out with the new figure in place so i may aswell leave things well alone aint i bsc no 162 0
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It was my understanding that if you were paying them back via a reduction in your benefits you did so till the end of your BR, then the rest were written off. If you were paying them back via a DD then they were written off in your BR straight away.
Now I am not 100% on this so I am just gonna PM Debt Doctor to ask him to look at this thread.BSCno.87The only stupid question is an unasked oneLoving life as a Kernow Hippy0 -
It used to be that:
1) if you were notified of the overpayment before your bankruptcy, then they could be included.
- If you are paying by deduction from current payments, then this could continue until your discharge but must cease after that.
- If you are making direct payments yourself then these should cease immediatly.
2) If you were notified of the overpayment after your bankruptcy date then HMRC could collect/pursue the overpayments in the normal way:
The above is explained more here: Tax Credits.
BUT last November at the Court of Appeal at the High Court it was ruled that all benefit overpayments that exist at the time of the bankruptcy must be included. That eliminates option (2) above. The news of this doesn't appear to have filtered down to everyone who should know yet.Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB
IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed0
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