What should I do? Tax credit underpayment

big_feet_little_toes

I've just received a lump sum of WTC as a result of underpayment in 2008/2009. My partner, who I make a joint claim with, has also received a lump sum for CTC. I am the sole earner in our household. I went bankrupt in March 2009, she is not bankrupt. Spoke to OR on phone about lump sum and with no questions asked about income or expenditure or who the payment was too (he just assumed it was to me) he told me to send a cheque for the lump sum to him. I'm now very confused as got some good advice from my previous post that effectively said he can't claim the lump sum as an asset, but can stick an IPA on me to get it. Understaning this I have pen poised to write the cheque for my WTC (not too sure about the CTC). However, just read another post that says he can't take it as it is a benefit and my duty is only to inform him of it. Any thoughts on what I should do, sign cheque or not? Have four children and money very tight could really do with it, but if he wants an income and expenditure and includes the lump sum in it, I see scope for him to change my figures to suit him, although I can prove most of our expenses and have made an effort to ensure the expenditures are reasonable. An IPA would really screw us and in the long run the IPA might amount to more than the lump sum received. Should I rock the boat or just hand over the dosh no questions asked? Tough one I know, but any thoughts advice or opinions greatly received.

kerrypn

Hi big feet

I have read with interest what has been said on both your thread and another thread asking prety much the same.

I would seriously call National Debtline or CCCS for urgent advice before you write the cheque, let us know what they advise as it would be good to know for most of us who claim these things what they say.

Hope this helps

fermi

Any back payment of benefits are yours to keep.

The OR can take a "run and jump".

http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part7/part2/part_2.htm#10

31.7.10 Arrears of benefits received post bankruptcy (August 2009)

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.

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.

big_feet_little_toes

Hi ya have already done that and they said he can have all my WTC and 50% of partners CTC so am getting quite stressed now about what to do. This is money that we had to do with out last year, it doesn't mean we can cope without it, if anything we need it more. It just seems unfair if that doesn't sound a bit rich coming from a bankrupt.

fermi

Note in my above post the word "voluntary".

Even as in an IPA they cannot force you to pay a penny of benefits to them.

fermi

BTW: We have been through this with other posters and OR's many times.

In each case the OR has had to back down and admit they were wrong.

You need to stick by your guns and the law.

fermi

Have a careful read through this thread:

---

> Don't believe everything OR's tell you!

big_feet_little_toes

Thanks for the advice. I am a fighter and think I might just notify him of it now and see what happens. The kindness of people who help on this forum never ceases to amaze me. I hope this post will help others. Thanks