Overpaid Benefits

script

There have been a few posts about overpaid benefit payments.

Stuff like housing benefits and tax credits.

Can they be included in Bankruptcy?

Or will they just get clawed back from future payments?

debtinfo

It depends on the circumstances

script

I did have a feeling it might get a bit complicated...

Shall we start with Housing Benefit?

kindofagilr

Dont Child Tax Credits get clawed back direct?

Like if they overpay you one year I thought HMRC just reduced your payments for the next year?

Thats what happened to my friend anyway.

script

What's the "overpaid" benefit that gets clawed back - during your B/R - then after your discharge - the balance gets written off.

script

I'm not exactly sure why I'm asking all this - cos I don't get a penny in benefits...

tonysarda

You can include your benefit overpayments but they will only be wiped out if they are NOT classed as fraud IE: If you were interviewed under caution and signed a confession you pay them back still, they need proof of fraud, the mere suggestion that overpayments were fraud is no good, they need a signed confession or for you to have paid a fine or a conviction in court, there's nothing to stop you from including them though from what i understand! you just will simply still have to pay up.

coolcait

As debtinfo says, it depends on the circumstances, whether a final award notice of repayments has been issued, when it was issued etc.

The one definite is that overpayments as a result of fraud are not included in bankruptcy.

debtinfo

have a read on here sections 40.102 A-G

http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch37-48/chapter40/part6/part6.htm

script

Thanks Debt - the answers are there

debt_doctor

All benefit overpayments are a provable debt in bankruptcy (unless incurred through fraud which is defined as admitting to fraud under caution, paying an adminisritive penalty under the 1992 social security act or being successfully prosecuted) providing the overpayment was demanded to be repaid before your bankruptcy date.
Whilst undischarged, the DWP can deduct payments from any ongoing benefit at a rate that must not cause you hardship. After discharge any remaining balance is written off.

DD