Bankruptcy and Housing Benefit

colin8

I would appreciate some advice please.

I self petitioned bankruptcy on 3 June. I have just received letters from HM Revenue notifying me that they have notified my employer and as from September I will be placed on a nil tax code and will make payments to the OR in place of paying tax.

My partner has today taken copies of the letter to the council offices as we are in receipt of housing benefit as I am on a low income. We have informed them of a pay increase also that I received in August and of the bankruptcy and that we will take in September's payslip showing the nil tax code as soon as I have received this.

However, our concerns are that housing benefit is determined by your income and in their calculations they take into account the amount of tax you pay. Although my payslip will show no tax being paid, I am still making those payments to the OR. Does anyone know whether this will affect our housing benefit?

Has anyone else experienced this who has gone bankrupt or can anyone offer any advice.

reall

Unfortunately i have not been in your situation. I would recommend going to the housing benefit department (the place like customer services to hand in the documentation i.e payslips,contact number for the OR,or letters that have in writing about you not having a tax code to do with bankruptcy). seek advice from the citizens advice bureau /money advice centre or law centre.you can google them.Make an appointment and see them .They are more familiar with the rules of housing benefit etc.Thirdly you can contact the cccs consumer credit counselling service.
hope this will inspire you

skylight

There was a huge thread and problems with this and another poster last year.

I think that the outcome was that the benefit WAS stopped as the income had increased, but the tax was left alone and the OR could not touch it so that it was used to pay the rent. Will have a search as I think it took a VERY long time to sort out.

skylight

https://forums.moneysavingexpert.com/discussion/750075


Here it is.

Have a VERY good read. It was about an IPA and housing benefit but as a nil tax code is sort of an IPA, the principle is the same.

colin8

Thank you kindly for all your replies and advice. I have read over the thread and can't believe what Chazpots experienced.

As mentioned, I have yet to take this September payslip into their offices and on speaking to two advisers at the council offices yesterday, one in person and one on the phone, neither could advise the likelihood of this situation, as they themselves had not experienced this before. So we will hopefully find out where we stand by the end of this month.

In the meantime though, I think I will approach CAB to advise them of the possible situation and whether they can advise further. Will keep you all posted. Just hoping that as this thread dated back to 2008 that miracously the law or council opinion has changed.. I always live in hope..