So I owe tax credits 4.5k apparently

Top_Girl

I thought bankruptcy (sp?) didn't clear tax credit debts?

bestpud

Top_Girl wrote: »

I thought bankruptcy (sp?) didn't clear tax credit debts?

No, it doesn't, but he was earning in this case and suddenly became the more likely target!

She eventually paid half of it but they actively chased him for the rest, Beforehand, they wouldn't help her in any way - just said she would have to sort it out with him.

kbtutd

Can anyone advise how far back they can try and reclaim? I am being pursued for overpayments from 2005, seems a long time ago.

Lady_gaga

kbtutd wrote: »

Can anyone advise how far back they can try and reclaim? I am being pursued for overpayments from 2005, seems a long time ago.

there is no time limit, these debts do not come under statute barred rules, they can chase you until the day you die... and then probably after from your estate!!

jimimi

I was in a similar situation OP, and I told them I would only be paying back my half of it, which they accepted. The person on the phone said that if it ever went to court they couldn't enforce that I paid back his half. I found this strange because I think you sign something to say they can chase either of you when you claim? I've paid back my half now, and they did say they could chase him for his half.

DanE2010

bestpud wrote: »

They will write to him about the over payment, but they won't split it in half - they will leave that up to the two of you to sort out.

In reality, that means they will pursue whichever one starts paying - i.e. you!!

If your ex refuses to pay anything, or even respond, they will not do anything as they are getting the payments from you.

It's infuriating, I know, but that's how it operates! You'd probably be better off refusing to pay until they've contacted your ex.

A friend of mine was forced to go bankrupt in your situation (left with ridiculous debts too) and then, funnily enough, tax credits suddenly started chasing her ex more rigorously - before then they couldn't have cared less!

Its changed in the past 2 years and they will only ever ask you to pay back half of the overpayment from an old joint claim (unless you are willing to pay the whole amount)

And they will be chasing him for his half also, the reason the lady got a letter with just her name on it is for security reasons as they are no longer a couple they dont put the other ex partners name and address on the letter as they are no longer together and may not want the other ex partner to know their new address.

bestpud

Thanks for the update, guys. My friend had this problem in 2006 so I'm glad they're more reasonable now!

Hammyman

Top_Girl wrote: »

They're gonna put it all in writing for me and have accepted £50 a month :T which is still gonna be a pest to find but will be easier than £60 or the £120 they initially wanted.

My last payment date will be Jan 2019 :eek: but obviously once everything else is clear I will either make extra payments to them or put money aside and try and clear it all in one go!

As it is effectively an interest free loan, I wouldn't get too hung up on repaying it faster.

bestpud wrote:

Thanks for the update, guys. My friend had this problem in 2006 so I'm glad they're more reasonable now!

I don't think they have a choice. Its that or nothing. Can't get blood out of a stone comes to mind and it looks like they've finally woken up to it. Maybe there is a silver lining to the recession.

Top_Girl

Hammyman wrote: »

As it is effectively an interest free loan, I wouldn't get too hung up on repaying it faster.


I don't think they have a choice. Its that or nothing. Can't get blood out of a stone comes to mind and it looks like they've finally woken up to it. Maybe there is a silver lining to the recession.

I'm no skank though, I hate owing money and will be paying it off asap. Debt hanging over me knocks me sick.

Hammyman

Top_Girl wrote: »

I'm no skank though, I hate owing money and will be paying it off asap. Debt hanging over me knocks me sick.

Likewise. However if you know that you don't have to pay interest on it, you can lower the priority of it when it comes to overpaying stuff so you're not making yourself worse off paying less on debts that do accrue interest.