Overpaid Benefits

script

DD,

Is it just Housing Benefits that ask that you pay (an affordable) figure during your bankruptcy.

Or does it happen with other "overpaid" benefits?

debt_doctor

script wrote: »

DD,

Is it just Housing Benefits that ask that you pay (an affordable) figure during your bankruptcy.

Or does it happen with other "overpaid" benefits?

It can happen with any type of benefit or social fund loan.

DD

script

Thanks DD,

And at the end of the B/R whatever is left is written off?

(because it was a "proven" debt in B/R).

debt_doctor

script wrote: »

Thanks DD,

And at the end of the B/R whatever is left is written off?

(because it was a "proven" debt in B/R).

Correct.

DD

script

Again many thanks DD.

julietormesby

debt_doctor wrote: »

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

Hi, I was not aware that signing/agreeing to pay an Administrative penalty was an admission of guilt. Can you please let me know where this is stated? Because it seems the DWP can just class something as fraud and that's it, on their say so!!!

Regards

Whoopy

I was overpaid benefits in 2006 when I first seperated from my ex. The maintenance he gave me for kids was paid by cheque and always showed in my bank statements. However nearly 2 years later this was quiried by them and when I told them they said I hadnt declared it by actually writing on the form!! I told them they had never quieried in on my bank statement so looked to me like both to blame!! ( also my mum and dad had both died a few months after I split with ex so you could say my head at that time was firmly planted up my bottom!!)

So I got interviewed under caution much to my embarassement and made to feel like a criminal. I never once said I admitted fraud as to me I had never committed it. It was overlooked and the fact I never hid the payment showed I had no intention to defraud them. Also my point to them was why did I get a review of housing benefits yet none of their officers noticed it or picked it up right away!!

I had to wait until after the christmas to find out the result, convinced that I was going to jail over a stupid misunderstanding. 2 months later I still heard nothing and had to phone them and ask the result. I was told vaguely nothing proven so asked if I could have that in writing please as nobody bothered to inform me!!

Anyway I am still paying the overpayment of council tax back at 20 quid a month 2 years on and housing benefit decuct from source. I was told this could not be included in BR although not fraud just couldn't be done.

The council are now in the same league as LloydsTSB as far as I'm concerned!!

debt_doctor

julietormesby wrote: »

Hi, I was not aware that signing/agreeing to pay an Administrative penalty was an admission of guilt. Can you please let me know where this is stated? Because it seems the DWP can just class something as fraud and that's it, on their say so!!!

Regards

Hi its contained in this link, in particular from point 14 onwards.

http://www.hblearning.co.uk/media/circular_summaries/2008/0802/A3v2008_Full.pdf

Paying an administrative penalty is a choice that if taken up gives the claimant immunity from prosecution for the overpayment under investigation. Those offered the option should take advice as it may well be that there is insufficient evidence to prosecute for fraud in such a case.

DD

immoral_angeluk

debt_doctor wrote: »

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

I would thank you for this but my thanks button has done a runner...

julietormesby

debt_doctor wrote: »

Hi its contained in this link, in particular from point 14 onwards.

http://www.hblearning.co.uk/media/circular_summaries/2008/0802/A3v2008_Full.pdf

Paying an administrative penalty is a choice that if taken up gives the claimant immunity from prosecution for the overpayment under investigation. Those offered the option should take advice as it may well be that there is insufficient evidence to prosecute for fraud in such a case.

DD

Hi, Have had a look at HB/CTB Ciurcular A3/2008, (in particular point 14) and notice this appears to have been drafted by the DWP dated Feb 2008. Which as you say says "agreed to pay a penalty under section".

However the DWP Sanction Policy in respect of fraudulent Social Security Benefit Claiims version 3 dated Feb 2009, 4.3.2. states "unlike cautions no admission of guilt is required from the customer before offering an administrative penalty. Presumably therefore if you sign an administrative penalty you have not admitted guilt, if you have not admitted guilt under caution, if you have not been convicted of fraud then you are not guilty of fraud. Therefore debts wholly occuring before the Bankrutcy date should be written off on discharge.

I would be grateful for your opinion.

Regards