Are outstanding National Insurance Contributions included in Bankruptcy?

HateBanks

Hi there guys,
Have searched but cannot find any info re this, I have got behind with NI contributions, and would like to know if they would be included in BR or would I have to allow room in my budget, and to make payments direct to them?
Thanks, most knowledgeable Money Savers.:)

sizzler

Hi there:)

where you self employed?

if yes NI is included in BR with your tax upto date of BR.

If you were working they are included but not sure how you would get behind as they are deducted usually at source.

Only thing that happens to some people if self employed before BR and you become unemployed DSS say you have not made enough NI payments and it takes a while to sort out your benefits.

hope this helps Sizz:)

debtinfo

As siz says the will be included but that may leave you short of the required contributions in the future so is something best rectified if possible

Emmamumof2

Looking to resurrect this thread although old if I can -
Haven't been on here in a while, as things have just ticked over!
I made all my NI Contributions right up to bankruptcy, but actually £45 was included in my bankruptcy because the direct debit for self employed people is paid in arrears. Cue now, almost 2 years later, having to claim ESA but they say I haven't paid enough NI in the year of bankruptcy because £45 was included in my bankruptcy! HMRC tell me I now need a written confirmation from the OR that they are happy for me to pay the missing £45 to HMRC in order for them to update that year's contributions and allow me to be eligible for ESA.
So my questions are:
1) Do you think OR will allow this or will they say no?
2) Should the DWP actually allow those contributions because they were included in the bankruptcy?


Any help greatly appreciated! Haven't had to think about the bankruptcy in a little while but its reared its ugly head at a really unfortunate time with being ill :-(

National_Debtline

Hi Emma

These answers are based on the assumptions that you have by now been discharged from your bankruptcy, and that you are not still the subject of an Income Payment Agreement.

(1) I cannot think of any sane reason the OR should want to object to this. The OR being obstructive would only increase the risk of you getting into debt all over again if were unable to claim welfare benefits at this stage. In any case if the bankruptcy is over then their say-so shouldn't really matter anyway.

(2) The inclusion of the NI arrears in the bankruptcy doesn't alter the fact that your contributions are short for the period concerned. DWP can't overlook this shortfall just because of the bankruptcy.

Hope that helps

Regards

Dennis @NDL

Emmamumof2

I am discharged yes -


I actually found this section in the OR manual:

77.42D Qualifying years needed to get the full basic state pension (added September 2013)

If the state pension age is reached on or after 6 April 2010, only 30 qualifying years are needed for entitlement to a full basic state pension.

If the state pension age is reached before 6 April 2010 the number of qualifying years needed for entitlement to a full basic state pension is normally 44 for men, or 39 for women.

If a bankrupt is concerned that failure to pay his/her National Insurance contributions due to bankruptcy will effect his/her entitlement to the state pension (or other contributory benefit), he/she should be directed to the HMRC website for more information on topping up National Insurance contributions. This also includes guidance on how to check his/her National Insurance contributions record.

I know this refers to state pension but it also say 'and other contributory benefit' so it says in their own manual that if a bankrupt person wants to address their NI contribution deficit they should look to HMRC website about how to "top up" so I have put this in a letter with the fact that Im discharged to the HMRC and a cheuqe for the £42 - lets hope that solves the issue and the claim for ESA can proceed.

I completely agree with your observation that it would make no sense for them to be obstructive when I need help because I am ill and failure to get the help may mean I couldn't manage financially and get in bother again. I will update once I get any news for any others who may be affected in the future. In the meantime, if anyone has any experience directly either as OR staff or because they've been in this situation I'd love to hear from you -

Thanks guys and girls.

Emmamumof2

I just wanted to update in case anyone else in similar position ever - the OR did give permission for me to pay the missing £42 so that I could claim contribution based ESA thankfully. But I did get this in writing for any future 'come backs'!