Please say I can keep this :)

fermi

debt_doctor wrote: »

I don't agree with that. Back dated benefits can only be considered as an asset not for the subject of an IPA. As they are exempt as an asset, they should not be claimed.

Not quite true, as they can be claimed under the IPA provisions as a voluntary contribution.

31.7.10 Arrears of benefits received post bankruptcy
(September 2008)

Occasionally, where a bankrupt is in receipt of benefits he/she may receive arrears of benefit payments as a post bankruptcy receipt (prior to discharge). Where this happens, because state benefits are excluded from the bankruptcy, the arrears of benefit (including tax credits ) cannot be claimed as a vested asset because they are state benefits. It may however be possible to claim the monies under the income payments provisions of the Insolvency Act by agreeing a single payment agreement with the bankrupt as a voluntary contribution. Any arrears of benefit claimed in this way should not include child benefit.

N.B. official receivers must ensure when dealing with arrears of benefit in this way as a voluntary contribution, that the payment does not represent an overpayment, which has been paid to the bankrupt post bankruptcy and which can be recovered after discharge in specific circumstances.

But the important thing for the OP is that if the OR try to get them to agree to that, then you are within your rights to tell them NO.;)

debt_doctor

fermi wrote: »

Not quite true, as they can be claimed under the IPA provisions as a voluntary contribution.

But the important thing for the OP is that if the OR try to get them to agree to that, then you are within your rights to tell them NO.;)

31.7.10 Arrears of benefits received post bankruptcy
(September 2008)

Occasionally, where a bankrupt is in receipt of benefits he/she may receive arrears of benefit payments as a post bankruptcy receipt (prior to discharge). Where this happens, because state benefits are excluded from the bankruptcy, the arrears of benefit (including tax credits ) cannot be claimed as a vested asset because they are state benefits. It may however be possible to claim the monies under the income payments provisions of the Insolvency Act by agreeing a single payment agreement with the bankrupt as a voluntary contribution. Any arrears of benefit claimed in this way should not include child benefit.

N.B. official receivers must ensure when dealing with arrears of benefit in this way as a voluntary contribution, that the payment does not represent an overpayment, which has been paid to the bankrupt post bankruptcy and which can be recovered after discharge in specific circumstances.

Thats the TM quote I was looking for !!- couldnt find it although I knew I had used it before.:o

Thanks:beer: - and by the way, when it comes to paying in BR I don't do voluntary !!:D:rotfl:

DD

fermi

debt_doctor wrote: »

Thanks:beer: - and by the way, when it comes to paying in BR I don't do voluntary !!:D:rotfl:

DD

Neither do I.

a) Benefits are paid for a damn good reason in the first place, so shouldn't be taken.
b) If you are on benefits then the only place any voluntary contribution will go to is to pay the OR's fees. :rolleyes: Creditors will see none of it.

So "stuff" that.

tomterm8

debt_doctor wrote: »

Thanks:beer: - and by the way, when it comes to paying in BR I don't do voluntary !!:D:rotfl:

DD

I guess it depends what the terms of the agreement are, presumably there is some advantage for some BR's to agree a voluntary agreement? Although what they are, exactly, is beyond me. In any case, getting professional advice is an obvious thing to do before making any such agreement.

josephine1_2

Thanks for pasting those sections, I will definitely keep use this if I win my appeal to backdate the hb/ctax benefit.

peachyprice

debt_doctor wrote: »

I don't agree with that. Back dated benefits can only be considered as an asset not for the subject of an IPA. As they are exempt as an asset, they should not be claimed.

Any on going benefits, including new benefits arising from the claim that brought the back payment, plus earned income would be used to assess an IPA.

Ive won that argument in my area a couple of times with the IS, but OR's reading of the TM differ across the UK. All I would say is challenge it if it happens.

DD

Sorry DD, that was in reply to Merc Man, he has no arrears, just normal straightforward benefits and salary. Have edited my post to include MM's quote to make it clearer.