tax credits and bankruptcy

depression

The Cab are helping me fill out my bankruptcy papers. They mentioned that I will get a nil tax code once I am bankrupt. I also get tax credits am I allowed to keep them. And if I am is this worked out for me by the OR. Or will the solicitors who collect the tax work it out. Thanks for your help.

IF

Hi depression, Unsure of the answer........bumping you up the board x

fredfedup

Think CAB have left you a little confused.

Once you go BR, you will be given a NIL Tax code. This can take some months to happen so don't panic. The OR will tell you how much Tax will be collected. Once you are actually on the Nil Tax code, the extra money you get in your wages, you will have to save. You MUST put it aside, as Moonbeever (the OR's Solicitors) will contact you and expect you to pay it to them. They have been known to take months to do this! So do not be tempted to spend it, while waiting.

Your Tax credits you keep, but you declare them on your Statement of Affairs (SOA) as they are classed as income.

Hope that helps a bit,

fred x