Letter from HMRC after bankrupcy

The_Duchess_3

Hello hoping someone can offer some advice.............. bit of back ground............

Went bankrupt in October 2011, once I got the order sent letters to all my creditors advising them of this along with a copy of my bankrupcy notice and advising them that the OR would be in touch. HMRC wrote back and stated
"The overpayments are now being dealt with by the Debt Management dept as they are being recovered directly and not from an ongoing award"

I Received a £0 IPA from the OR, so thought that was it and I would just have to wait it out until my discharge.

Today I received a letter from HMRC regarding the overpayment debt asking for payment.

This debt was detailed when I went bankrupt so I don't know what to do, I will be contacting the OR for advice but wanted some before hand (more to try and ease my mind more than anything)

Does this mean this debt is not covered by the bankrupcy or are they trying it on????

Any help would be much appreciated thank you :sad:

fermi

Tax Credits I presume?

If you were notified of the overpayment before your bankruptcy date, as you must have been if detailed on your BR forms, then they are covered by the bankruptcy.

The_Duchess_3

Yes I was notified in writing about the overpayments, it's one of the reasons I went down the BR route as that is what tipped my finances over the edge!!!

antonic

Write to them quoting you BR Number and which court you were made BR at.

They should then check the Individual Insolvency Register here :
http://www.insolvencydirect.bis.gov.uk/eiir/

Then any debt BEFORE the date you went BR should be written off, but not any debts that you have accrued since you went BR.

The_Duchess wrote: »

Hello hoping someone can offer some advice.............. bit of back ground............

Went bankrupt in October 2011, once I got the order sent letters to all my creditors advising them of this along with a copy of my bankrupcy notice and advising them that the OR would be in touch. HMRC wrote back and stated
"The overpayments are now being dealt with by the Debt Management dept as they are being recovered directly and not from an ongoing award"

I Received a £0 IPA from the OR, so thought that was it and I would just have to wait it out until my discharge.

Today I received a letter from HMRC regarding the overpayment debt asking for payment.

This debt was detailed when I went bankrupt so I don't know what to do, I will be contacting the OR for advice but wanted some before hand (more to try and ease my mind more than anything)

Does this mean this debt is not covered by the bankrupcy or are they trying it on????

Any help would be much appreciated thank you :sad:

The_Duchess_3

Just had a phone conversation with the OR who has informed me that the overpayment - even though incurred before my BR, is NOT included in my BR!!!! and that I have to contact HMRC as it is between me and them.

So much for thinking that it was all over and done with and I could start breathing.

Any ideas????? I have no idea why I wasn't told this information before that it wasn't included in my BR.......... I am soooooo angry right now.:mad::mad::mad::mad:

fermi

What reason did they give?

If you received notification of the overpayment before your BR, then it is covered by the BR whether your OR likes it or not.

fermi

http://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch73-84/Chapter77/part7/Part7.htm#77.50

Although even the above is slightly out of date. A recent High Court case ruled that overpayments cannot even be deducted from an ongoing claim, let alone by direct collection.

The_Duchess_3

They didn't give a reason just that it wasn't covered by BR. I even called him back to double check and ask why I wasn't told this earlier. He just stated that it overpayments aren't covered and it's not something that is pointed out!!!!!!!!

I don't know what to do now, I am always put through to the person who was dealing with my case, so I can't speak to any body else in the office. I am in tears, what do I do now???????



I am also worried that if overpayment for tax credits are supposdily not covered will it be the same for overpayment from the child support agency and child benefit office??????

I feel sick!!!!!!!!

fluffy70

The_Duchess wrote: »

They didn't give a reason just that it wasn't covered by BR. I even called him back to double check and ask why I wasn't told this earlier. He just stated that it overpayments aren't covered and it's not something that is pointed out!!!!!!!!

Your OR is wrong - if you read the link that the other poster above pasted for you it clearly states

In all cases where a final award notice (of repayment) has been issued by HMRC before the date of the bankruptcy order, the debt should be added to the list of creditors and HMRC treated by the official receiver as a creditor in the usual way.

I would get back onto both HMRC and your OR and possibly get some advice from CAB?

fermi

The_Duchess wrote: »

They didn't give a reason just that it wasn't covered by BR. I even called him back to double check and ask why I wasn't told this earlier. He just stated that it overpayments aren't covered and it's not something that is pointed out!!!!!!!!

They are talking out of their backsides.

Overpayments are most definitely covered.

Have you got an email for this person or his boss? I would stop talking to them on the phone and write/email.

Also the same direct with HMRC.

yesican

My tax credit overpayment WAS covered in my BR.