Over paid salary

Uncertain

Slimming-world wrote: »

Thank you for your reply :A

I was thinking that if they had noticed the mistake 12 months ago could the 'debt' of been added to the bankruptcy?

I hope it helps but I would stress this is nothing more that a question I would ask. I don't claim any expert knowledge in the area of bankruptcy.

Slimming-world

SarEl wrote: »

Couldn't say. But my best guess is that yes they do have more rights because they are not part of the bankruptcy order (so not one of the creditors), and I am wracking my brains trying to work out what legislation would enable the creditors (and it would have to be them) to force an employer to pay the full wage. And even if such exists - OP still owes (I assume) the money and provided they keep chasing her once every six years (or more) they will still get it, one way or another. Can someone declare double bankruptcy??? Although I suspect I see the OP's job disappearing rapidly if they did. TBH if negotiation doesn't work I think a specialist advisor in bankruptcy rather than employment is called for.

Thank you for your reply :A

I will advise and help her draft a letter to the HR Dept explaining how much she can afford and see what happens from there

JCS1

BR covers all unsecured debt (with a few exceptions such as student loans), regardless of whether or not the debt was noted on the statement of affairs, so technically the debt would have been included in her BR (though anything after the BR date would be their responsibility).

With regards to the Income Payment Agreement made with the OR, she has a duty to notify the OR of any changes in income within 21 days, so they would then reassess the payments she makes.

SarEl

I think part of the problem - and this is not my area, so I am speculating - would be that the "debt" did not exist at the time of the bankruptcy in that the employer did not realise an error had been made, and nor did the employee. I am quite convinced that specialist advice should be sought here. Quite apart from anything else, whilst I appreciate that she know nothing about the alleged overpayment (and this should still be checked to make sure they are correct - they made a mistake once so why not twice?), I have concerns that unless this is resolved amicably in some way that her future employment prospects may be less rosy. No matter how much of a model employe she is, an employer can find ways and means of making just about anything fair if they set their minds to it, and I wouldn't want to see her in a position of finally struggling out from under her debt, only to be faced with, let's say, redundancy. Or worse.

Uncertain

SarEl wrote: »

I think part of the problem - and this is not my area, so I am speculating - would be that the "debt" did not exist at the time of the bankruptcy in that the employer did not realise an error had been made, and nor did the employee.

I appreciate you are only speculating (and so am I) but I'm at a loss as to how a debt can only exist if somebody realises it at a particular time!

Either the money was overpaid and therefore owed or it was not. The fact that Fred in payroll hadn't realised is neither here nor there - surely?

What you are suggesting is had the employer done their job properly they would be worse off than if they screwed up!

I take your practical point about being careful not to antagonise the employer. Presumably if the employer takes the money through payroll but my theory is correct the OP's friend could reclaim it any time in the next six years?

JCS1

I've sent the link to this thread for someone to have a look at, I did spent a bit of time working for the Insolvency Service, but their knowledge of bankruptcy law is far greater than mine.

debtinfo

My take is this, at least part of this debt existed at the date of the bankruptcy, it does not matter who knew or did not know, if it was over paid then it was at all times owed back to the company, ie the moment it was paid in error it was owed and therefore is a debt in the bankruptcy, The fact that they are her employer should not give them any extra entitlement over any other creditor (although obviously not good for worker relations).

Therefore i would write to both the employer and the OR stating the facts and that the OP believes that this is a bankruptcy debt.

Any part of the overpayment paid to the OP after bankruptcy is a post bankruptcy debt and thus remains. Any part already deducted since the bankruptcy should only go towards paying the post bankruptcy debt not the pre bankruptcy debt and the OP should make that clear in their letter.

Finally as the OP's income is now reduced she should speak to the OR regarding appropriate payments (or maybe none depending on circumstances) for the bankruptcy

Slimming-world

debtinfo wrote: »

My take is this, at least part of this debt existed at the date of the bankruptcy, it does not matter who knew or did not know, if it was over paid then it was at all times owed back to the company, ie the moment it was paid in error it was owed and therefore is a debt in the bankruptcy, The fact that they are her employer should not give them any extra entitlement over any other creditor (although obviously not good for worker relations).

Therefore i would write to both the employer and the OR stating the facts and that the OP believes that this is a bankruptcy debt.

Any part of the overpayment paid to the OP after bankruptcy is a post bankruptcy debt and thus remains. Any part already deducted since the bankruptcy should only go towards paying the post bankruptcy debt not the pre bankruptcy debt and the OP should make that clear in their letter.

Finally as the OP's income is now reduced she should speak to the OR regarding appropriate payments (or maybe none depending on circumstances) for the bankruptcy

Sorry for my delaying in replying Thank you so much for your help :A
I have spoken to my friend and she is going to come round with all the paper work early next week and we are going to get everything together so she can contact everyone :A:A

Slimming-world

JCS1 wrote: »

I've sent the link to this thread for someone to have a look at, I did spent a bit of time working for the Insolvency Service, but their knowledge of bankruptcy law is far greater than mine.

Thank you so much!

:A:A:A:A