Debt Accrued prior to BR but generated after

montymud

Hi there, We have just been informed by our housing officer that housing benefit made an overpayment to us between August and December - prior to Bankruptcy. They council recently asked for my old wage slips which I provided and they have said that they have worked out that they made an overpayment of £400. The debt was accrued prior to my BR on the 19th December but it was only generated this week - so where does that leave me? Is the debt part of the BR or not? Thank you

debt_doctor

Hi,


As the overpayment occurred before your BR then it is an included debt. You need to inform the Insolvency Service.


Quote this if necessary;

40.102 Overpayment of state benefits (amended August 2013)
Overpayment of state benefit, such as housing benefits, jobseekers allowance or tax credits may be made as a result of mistakes, change of circumstances or fraud.
It has been held that a debt in respect of an overpayment of benefits made prior to the date of the bankruptcy order would be a contingent liability (see Part 7) provable (included) in the bankruptcy, whether the recovery decision was made before or after the bankruptcy order date URL="http://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch37-48/chapter40/part6/Notes/Notes.htm#7"][SIZE=3][COLOR=#0000ff]Note 7[/COLOR][/SIZE][/URL.


DD

montymud

Thank you so much for the reply, I really appreciate it. I was worried because I don't want even a penny of debt for a long long time!