Tax Credits...

Sammy3008

Just to make things a little more non-understandable, sorry!!

Our son got awarded DLA in July09, made the claim back in february, so got a back-payment, which I've spoken about.

However, I spoke to the HM Revenue & Customs, regards the Tax Credits. Just had the paperwork through, literally, so thought it best to question it on here.

Basically we've had back payment on this, so they owe us £1196.43 I imagine until 04/2010, which will be paid into the account, bit by bit each month, what will happen to this?

Is there anyway I can put the Tax Credits just into my name, although they take my OH's income into account aswell.

So now each month, into the (upto now) joint account, they'll be paying in £114.25....

£166.25 went in on the 22/07 and another £116.18 has gone in today.

How will this affect the BR?

Just when I think I've got most questions answered something else crops up :rolleyes:

Sammy3008

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1750
Benefits................................ 246.25 Tax Credit and Child Benefit

Total monthly income.................... 1996.25
Monthly Expense Details
Mortgage................................ 495 Will be rent and possibly around £650
Council tax............................. 86 Will be higher, probably around £96/£97
Electricity............................. 35 Probably be higher.
Gas..................................... 58
Water rates............................. 32
Telephone (land line)................... 25
Mobile phone............................ 15
TV Licence.............................. 12
Satellite/Cable TV...................... 30
Internet Services....................... 10
Groceries etc. ......................... 500
Clothing................................ 25
Petrol/diesel........................... 120 May be slightly lower as less miles when moved
Road tax................................ 14
Car Insurance........................... 35
Car maintenance (including MOT)..10
Car parking............................. 10
Other travel............................ 10
Other child related expenses........34
Medical (prescriptions, dentist etc 14
Buildings insurance..................... 10
Contents insurance.....................10
Presents (birthday, christmas etc).20
Haircuts................................ 20
Entertainment........................... 10
Holiday................................. 25
Emergency fund.........................5
Opticians............................... 10
Total monthly expenses...............1680

Assets
Cash.................................... 500 possibly
House value (Gross)....................75000
Car(s).................................. 4000
Total Assets............................ 79500

Secured & HP Debts
Mortgage £ 75028 £495 6.49%
Total secured & HP debts...... 75028

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................23447.....156.......0
Loan...........................16000.....202.......0
Loan...........................10000.....0.........0
Estate Agent Fees.........1712......0.........0
Credit Card...................4000......0.........0
Loan ..........................14000.....0.........0
Loan...........................9500......0.........0

Total unsecured debts...78659.....358......

Monthly Budget Summary
Total monthly income.................... 1,996.25
Expenses (including HP & secured debts). 1,680
Available for debt repayments........... 316.25
Monthly UNsecured debt repayments....... 358
Amount short for making debt repayments. -41.75

Personal Balance Sheet Summary
Total assets (things you own)........... 79,500
Total HP & Secured debt................. -75,028
Total Unsecured debt.................... -78,659
Net Assets.............................. -74,187

This is with the new Tax Credits award on top.

maxmycardagain

these are wiped in BR, your SOA should be debt free

Unsecured Debts
Description....................Debt......Monthly.. .APR
Loan...........................23447.....156...... .0
Loan...........................16000.....202...... .0
Loan...........................10000.....0........ .0
Estate Agent Fees.........1712......0.........0
Credit Card...................4000......0.........0
Loan ..........................14000.....0.........0
Loan...........................9500......0........ .0

Total unsecured debts...78659.....358......

Sammy3008

maxmycardagain wrote: »

these are wiped in BR, your SOA should be debt free

Will the OR want to claim any of the Tax credits though? And from that SOA, would my DH be likely to get a petition for BR?

I'm panicking now this Tax Credit thing has come through, can you tell, lol?

debt_doctor

Backdated benefits do not vest in the trustee, so cannot be claimed by the OR, that is yours to keep although of course tax credits do count as ongoing income in an assessment for an IPA.

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.

DD

Sammy3008

debt_doctor wrote: »

Backdated benefits do not vest in the trustee, so cannot be claimed by the OR, that is yours to keep although of course tax credits do count as ongoing income in an assessment for an IPA.

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.

DD

Does the same thing apply to our son's DLA then, or is that completely different?

tigerfeet2006

Yes it would. You can write a letter to the OR to show you know the rules and won't accept it if he wants to take the money. This is from a previous post by Fermi, just adapt for your use

Dear OR,

On xx/xx2009 I shall receive/have received a back payment of Child Tax Credit for the sum of £xxxx.

I understand that as a back payment of state benefits this sum is excluded from being regarded and claimed as an after acquired asset.

I also understand that this should not be be claimed under the Income Payment provisions of the Insolvency Act 1986 and Enterprise Act 2004.

Therefore I am informing you of this payment for information only, according to my duties while undischarged.

Yours.....

Sammy3008

tigerfeet2006 wrote: »

Yes it would. You can write a letter to the OR to show you know the rules and won't accept it if he wants to take the money. This is from a previous post by Fermi, just adapt for your use

Dear OR,

On xx/xx2009 I shall receive/have received a back payment of Child Tax Credit for the sum of £xxxx.

I understand that as a back payment of state benefits this sum is excluded from being regarded and claimed as an after acquired asset.

I also understand that this should not be be claimed under the Income Payment provisions of the Insolvency Act 1986 and Enterprise Act 2004.

Therefore I am informing you of this payment for information only, according to my duties while undischarged.

Yours.....

Thank you so much Tiger-feet, will try and remember where it was posted when the time comes, and write a letter from that.
Should DH write this as soon as he knows who is OR is going to be?

And does he just have to write a letter for the Tax Credits or the DLA aswell (the DLA however is in my name) the Tax Credits are in both names.