Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

Taylomic

What would happen if I didn't disclose it

Flyright

That would be breaking the law. HMRC will eventually notify the Official Receiver in any case.

Taylomic

As part of bankrupcy I had to sign a TNIDIS form so I thought any tax rebate I wasn't entitled to would be paid direct to the (OR) trustee and I thought that because the rebate was from so long ago that hopefully I could keep it

Flyright

I'm afraid not. It's likely that HMRC have not actioned the OR notification but you are legally bound by the requirement to inform the OR of the refund.

Taylomic

Thanks I did think that myself that maybe the OR hasn't been informed yet I was planning on informing them but just wanted to know if I could possibly plead a case to keep at least some of the refund before I told them I searched on the internet and some information is conflicting thank you for your input anyway 😀

Taylomic

I read this that's what led me to believe I might be able to keep the refund can anyone interpret it in simple terms for me


3. Tax refunds - bankruptcy

Tax refunds may be payable to a bankrupt for periods both before and after the making of the bankruptcy order. Refunds due for tax years prior to the date of the bankruptcy order and for the tax year in which the bankruptcy order was made can be claimed using the bankrupt’s duly completed Income Tax and National Insurance disclosure authority form TNIDIS. Any refund in respect of tax years after the tax year in which the bankruptcy order was made may be claimed by means of an income payments agreement/income payments order (IPA/IPO) where the bankrupt remains undischarged. The IPA/IPO application should clearly state what is being claimed. It must also be borne in mind that an IPA can only be entered into prior to the discharge of the bankruptcy and therefore the bankrupt must agree to and the official receiver must accept the IPA prior to discharge. Where the bankrupt does not consent to the IPA or there is insufficient time to obtain an IPA prior to discharge the official receiver has the option of applying for an IPO, since an IPO may be made on an application instituted before the date of discharge (OROS Bulletin2/05).

Flyright

Your refund relates to tax years prior to the bankruptcy order and is an asset in your bankruptcy estate. It just so happens it was generated before HMRC processed the TNIDIS form. Nontheless it belongs to the OR and you are required to disclose it.

Former_StepChange_Linsi

Hi

Thanks for your post and welcome to the forum.

I've responded to the private message you sent us about your tax rebate. If you have any other questions you can reply to the private massage or use the forum.

All the best,

Linsi

Taylomic wrote: »

Hi I made myself bankrupt 27 march 17 and I have an IPA for a small amount each month. I have received a cheque for tax rebate today 12 June 17 and need to know if I will be allowed to keep it it is for the tax years 2005-2008 will the trustee know about this cheque I have received ?
Thanks

portofcall

I was informed by my intermediary (not Stepchange) that this exclusion (below) includes damages to my ex-landlords flat which he has made a demand for money for and could not be included on a DRO.

However, this exclusion clearly states that this in relation to damages relating top personal injury claims, not property.

Please confirm this. Thanks.


46.22 Excluded debts – damages

Where the DRO application is made on or after 6 April 2010, any debt which consists of a liability to pay damages for negligence, nuisance or breach of a statutory, contractual or other duty, or to pay damages under Part 1 of the Consumer Protection Act 1987 (which deals with product liability) – being in either case damages in respect of the death or personal injury (including any disease or other impairment of physical or mental condition) to any person is an excluded debt. [note 25].

StepChange_Rachael

Hi

Thanks for your post.

I’ve taken a look into this for you and as we are aware damages to personal injury wouldn’t be included but damages to property wouldn’t come under this exclusion and would be included in a debt relief order (DRO).

To confirm this debt would have been included in your DRO and for advice on the next steps i’d suggest speaking with the Insolvency Service.

Thanks
Rachael

portofcall wrote: »

I was informed by my intermediary (not Stepchange) that this exclusion (below) includes damages to my ex-landlords flat which he has made a demand for money for and could not be included on a DRO.

However, this exclusion clearly states that this in relation to damages relating top personal injury claims, not property.

Please confirm this. Thanks.


46.22 Excluded debts – damages

Where the DRO application is made on or after 6 April 2010, any debt which consists of a liability to pay damages for negligence, nuisance or breach of a statutory, contractual or other duty, or to pay damages under Part 1 of the Consumer Protection Act 1987 (which deals with product liability) – being in either case damages in respect of the death or personal injury (including any disease or other impairment of physical or mental condition) to any person is an excluded debt. [note 25].