Bankruptcy and benefit over payment

tonysarda

Hi everybody, i'm thinking of going Bankrupt but would like to know if a housing benefit over payment due to fraud can be written off due to Bankruptcy, i would like to add the overpayment occured when i was working part time hours and failed to mention a rise in hours over the christmas period to the housing benefit and was given a 1st time caution under taped interview as a result, i feel really bad about this but wondered if i could list them on my list of crediors and wipe the debt away with them, i have other debts with loans aswell which i will add but it's the housing benefit debt i'm unsure of.

Thankyou tony.

dojoman

Contact one of the below, they should be able to advise you.

https://www.cccs.co.uk/
https://www.nationaldebtline.co.uk/
https://www.citizensadvice.org.uk/

tonysarda

Ok thankyou.

dojoman

No problem, hopefully someone with more BR knowledge than me will be along shortly to help you.

nuttyp

hi, dont think this can be included. I couldnt include a tax credit overpayment - and it wasnt even my fault, i reported a change in circumstances.

I would enquire with cab or another of the debt charities.

RichesToRags

No, sorry, you won't be able to include it.

snoopy89

i had 1500 pounds wiped off due to going br, the os infomed the dwp or whoever it was and they kindly sent me a latter stateing that due to the or informing them they would write off all outstanding payments due, total 1500 pounds. thats 10 pounds a week better of for me. i nearly fainted, and was over moon.:j:T:T hope that help but no garrentes

tonysarda

Thank you for your replies, i was told by somebody that apparently the council can take back the debt during the bankruptcy but as soon as that person is discharged the debt is wiped clean with them.

fermi

tonysarda wrote: »

Thank you for your replies, i was told by somebody that apparently the council can take back the debt during the bankruptcy but as soon as that person is discharged the debt is wiped clean with them.

Correct, normally.

But if the debt is due to "fraud" then it is not written off at the end.

Insolvency Act 1986 - 281. Effect of discharge.

(3) Discharge does not release the bankrupt from any bankruptcy debt which he incurred in respect of, or forbearance in respect of which was secured by means of, any fraud or fraudulent breach of trust to which he was a party.

tonysarda

fermi wrote: »

Correct, normally.

But if the debt is due to "fraud" then it is not written off at the end.

Thank you for your reply fermi, does it still apply if the person was only given a 1st formal warning though, although admittedly still fraud, only i was sort of under the impression it had to be fraud convicted in court.

debtinfo

depend on if the person admited fraud at the interview, if they did, signed and agreed to pay it back, then no need to go to court