tax credits

daytona650

i am likely to go bankrupt in the next four weeks and we currently owe money for over payment of tax credits. The new job i have managed to secure is a lot less than what i am used to, will i be able to claim tax credits after going bankrupt or will the fact that we have previously been overpaid prohibit this. Any help would be great.

gpkwells

Not sure on this one - you might get a better response to this on the benefits and tax credits board??? Click the link below:

http://forums.moneysavingexpert.com/forumdisplay.html?f=139

debt_doctor

Hi,

Yes you will be able to claim tax credits after you go BR. So long as the decision to recover the overpayment has been made before bankruptcy then this debt will be written off in your BR.

They CAN take payments from an ongoing award whilst you are undischarged but the payments must not cause you hardship.

DD

daytona650

Thank you for that!
Just one more question do you open your new account before or after bankruptcy? Who is best? and should you leave any money in there for day to day living or is it immediatley swallowed up.
A lot of people say they empty there account the day they go bankrupt is there a guideline to what is reasonable to take out?

gpkwells

You will need to open a Coop cashminder or Barcleys ???? account. Both give accounts to BR people.

I know the Coop one is ok to open before BR as it wont be frozen. Transfer your wages into it and let the OR know the details.

Some have withdrawn funds just before BR and then opened an account. This also seems to be fine, just as long as the OR knows what ammount you withdraw. Don't lie to him/her as they will check.

:beer:

debt_doctor

its ok to have money in your account when you go Br so long as it is not excessive and is there to cover your essential bill / costs. CO OP account definately best, and better to open before BR and transfer your wages as the above poster says.

DD