Bankrupt for a second time -tax credits?

haddit

I was made bankrupt March 09 and I have received a notice from HMRC to sat that I have been over paid by thousands for 06/07 and 08/09 ! I know that this cannot be included in my current BR.

Basically when my business was failing I neglected to tell them about changes in my circumstances, I was desperate and very pre-occupied with just keeping a roof over our heads. As a result they have disallowed my entire claim as I failed to provide evidence to the contary. I am first to admit my head was in the sand and I just stacked their letters up along side all my other unopened ones. I just couldn't cope with dealing with it.

Obviously they want me to pay it back but how, i am an undischarged Br and have no disposable income and they have now stopped my claim and so I can't work as I don't get the child care element. Looks like I will have to apply for income support, housing and council tax benefit. Madness I want to work but I cant pay the childminder now !

Will they make me BR again after discharge?

Thanks for any helpful advice in advance.....

damoandclaire

do you know for absolute certain that you cannot include this in your current BR - has the OR stated this to you?

As i understand it, anything dated prior to the date of the court order making you bankrupt, can be included in the bankruptcy - where tax credits are concerned I beleive that they can claim repayments up to the point that you are discharged and then no more.

I would double checkt he position of including TC in bankruptcy and only take the official line of the Official Receiver in this regard.

I cant see them making you bankrupt again for the simple fact that it will cost them money to do that and you will have no assetts by this time as you have already been bankrupt once and therefor, they won't get anything.

:rolleyes:

dmg24

So you committed fraud and now want to go bankrupt to solve the problem?

coolcait

I have no idea whether fraud was or was not committed here.

As a general point, I believe that any debt incurred through fraud will not be written off after bankruptcy (usual disclaimer here - that's how it works under the Scottish system). The individual would remain liable for the debt.

miss_spooky

Hi Haddit,

Sorry to hear about your predicament. Have you spoken to the HMRC? I only ask as I know someone who was doing a party plan business and failed to let them know that she had stopped trading - she only did xmas period but had reg SE. We did all her self assessments from 2006 to currant and they re-evaluated her assessment & cleared the debt? Unless your circumstances are different. It was a hairdressing / beauty salon you had wasn't it?

Also if I remember from your posts prior to BR, wasn't your mum your childminder? Can't you come to an arrangement with her payments?

Also I thought child tax credits & child care element were paid based on what your salary is now - so the bill for HMRC would be irrelavant? Has your childcare element stopped cos your now earning more money? They can't stop wht your entitled to only in as far as to reclaim overpayments then they have to make sure that you are not suffering financial hardship as a result?

kelloggs36

coolcait wrote: »

I have no idea whether fraud was or was not committed here.

As a general point, I believe that any debt incurred through fraud will not be written off after bankruptcy (usual disclaimer here - that's how it works under the Scottish system). The individual would remain liable for the debt.

She admitted she did not notify them of a change of circumstances - knowlingly doing this is indeed fraud.

skylight

Haddit - you need to get professional advice on this one.

Its my understanding that you cannot include this in your BR as they sent you a "bill" as such after your BR date thus making it a proveable debt after your BR. But the 06/07 one - is this the first time you have had a bill or demand for it?? Is there a demand pre-dating your BR amoungst all the letters you ignored?? (I really dont think that you will have a bill pre-dated your BR for the 08/09 one - but check them all with a fine tooth comb). Of course, on top of this, there is the possible fraud element; debts that are due to fraud are not included in BR so they (OR probably) will also need to establish whether you were just ignorant to the fact or did it deliberately.


It is unlikely that they will make you BR again for this. Tax Credits don't really - they just deduct what you owe from future payments. If you are not working and on IS then you are "entitled" to the maximum CTC (Which looking at my forms is about £150 per month, per child - very approximately though so check out entitledto.co.uk) so work out how long it will take to pay this back. Also, they can only take enough that doesn't leave you in financial hardship (as mentioned previously); but from experience this can take several months to sort out!!

So: Plan of action -
1) Find out if the debts are proveable (billed before BR date) and can be included in your BR. (Bearing in mind the fraud element)
2) If not, make an appointment with a CTC advisor at CAB or similar to discuss about the hardship. CTC themselves do not normally make this known over the phone!

Its not the end of the world - we can sort it out, one way or another.

PNPSUKNET

shes lucky they are not doing her for benefit fraud

peachyprice

You can't be made BR again while you're already BR.

You got lots of replies about what the TC people may do in your thread form July

http://forums.moneysavingexpert.com/showthread.html?t=1835189&highlight=

philnicandamy

Thought it looked familiar.....thank u peachy

dalip

I seem to remember "max"offered invaluable help on your previous threads,maybe he will come back and offer you some more advice.Dx