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tax credit overpayments in bankruptcy

Evening all,

I was just wondering if anybody knows where we stand with tax credit overpayments in bankruptcy? About 2 years ago I was overpaid by about a grand in working tax credits and have been repaying it by them taking deductions each month. My tax credits have significantly reduced due to a change in my circumstances so I'm expecting to get a bill at some point for the remaining amount owed. Is this something that I can include in my BR or is that seperate?

thanks x

Comments

  • fermi
    fermi Posts: 40,542 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker Rampant Recycler
    They are covered by bankruptcy. At the moment.

    They used to be able to deduct from benefits until you are formally discharged, but recent court rulings (Payne vs DWP) if extended to tax credits mean that even this may have to stop.

    (They have just changed the law to stop social funds loan debts being included, so the above may change at some point)
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

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