old benefit overpayment and bankruptcy

bornjoyful

I was made bankrupt 6 years ago. I am technically free and clear forom it now !
7 years ago I was interviewed for a benefit overpayment but heard nothing until a year after the bankruptcy (5 years ago) and they decided £500 has to be paid back.

Am I correct that even although the overpayment was made to me for a time before the bankruptcy, because I knew nothing about it till after the bankruptcy, I will still have to pay it back?

strangely because I was not on benefits the last 5 years they have only just tried to recover it

many thanks

Sinhanada

I don't know how this works with bankruptcy but I know they are chasing up old debts at the moment. It is entirely possible that they have just got around to you.

I also don't believe the statute of limitations applies to state benefits?

fermi

Think you may find your answer in this thread.

----> https://forums.moneysavingexpert.com/discussion/4902981

Sinhanada wrote: »

I also don't believe the statute of limitations applies to state benefits?

I'm afraid you believe wrongly.

Mr_F_Dorsetty

bornjoyful wrote: »

I was made bankrupt 6 years ago. I am technically free and clear forom it now !
7 years ago I was interviewed for a benefit overpayment but heard nothing until a year after the bankruptcy (5 years ago) and they decided £500 has to be paid back.

Am I correct that even although the overpayment was made to me for a time before the bankruptcy, because I knew nothing about it till after the bankruptcy, I will still have to pay it back?

strangely because I was not on benefits the last 5 years they have only just tried to recover it

many thanks

TALK TO YOUR OFFICIAL RECEIVERS OFFICE


As far as I am aware from your post you would have put the benefit overpayment into your BK if you had known you actually owed it.

As it was incurred before you being BK then the OR should add it into your BK.... even now 7 years on.

Please... don't muck about on here. Simply telephone the only person which matters, the OR, and sort it out with them.

People seem to not realise or grasp a certain fact, even those who have been BK.

Which is that when you go BK you no longer exist as a financial entity for basically anything prior to that BK date.

So, if anyone did owe the benefits office anything it would be the OR as the OR took over all responsibility for your debts - capiche?

debt_doctor

Hi,


The debt will be part of your BR providing it was not considered fraudulent. The appropriate time is when the overpayment occurred, not when it was demanded. It does not matter as to whether the debt was on your BR forms or not.


For the debt not to be fraudulent, you must not have;
Admitted fraud under caution (being under caution in itself does not count - its an admission)
Or
Paid an administrative penalty under the Social Security Administration Act
Or
were successfully prosecuted for fraud.


DD

bornjoyful

So am I understanding correctly?
It is from when the overpayment occurred .
Not when they made the decision (a year after the BK)
and
Not when they demanded (five years later)?
Thereforee I can contest it now

debt_doctor

bornjoyful wrote: »

So am I understanding correctly?
It is from when the overpayment occurred .
Not when they made the decision (a year after the BK)
and
Not when they demanded (five years later)?
Thereforee I can contest it now

Yes you are correct, quote s40.102 of the Insolvency Service Technical Manual.




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 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.
Such a debt incurred through fraud would not however be released upon discharge (see paragraph 40.12A).
It is considered that overpayments which are made after the date of the bankruptcy order are a post bankruptcy liability, for which the bankrupt would be liable to repay, even though they arose following an error (the decision to overpay) which occurred before the order.



It is the date you were overpaid, not the date you were asked to repay that matters.

DD

bornjoyful

Well , thanks! Kind of good news although i dread the hassle this is going to be to put right
. Basically when i questioned this in 2008 when they made the decision and started taking money off my benefits, they lied to me.(2016 CORRECTION- as the Supreme Court decision was not made until 2013, I was not lied to in 2008 !)

I started to pay it then I came off benefit completely and only now have they caught up again. and I am still off benefits.
will it make a difference that I started to pay it? I mean, will they consider any payment , even £1 an acceptance of liability?

I also have a debt from a social fund crisis loan in 2008 which I do owe for- can I ofsett the money paid already to the debt that I should not be paying?
Do I need to involve the official receiver about the already paid part that should not have been paid?
And just for clarification to anyone else coming across this post- if your bankruptcy or DRO wa safter march 2012 then none of the above applies and you owe the money!
many thanks

SomebodyToldMe

I recently went BR and a tax credit overpayment of £8k was included when CAB helped with my forms- this despite dispute...a 'I told/ no you didn't' panto about change of circumstances.
Good luck

bornjoyful

I got a response from The DWP saying that they are still considering it owing as decision made after bankruptcy. Overpayment= April 2006. bankruptcy May 2007. DWP decision =June 2008.
Should i just get backl to them quoting 40.102 or should i go to Citizens Advice and ask them to do it...may I copy them your post Debt Dr? thanks

alastairq

Should i just get back to them quoting 40.102 or should i go to Citizens Advice and ask them to do it...may I copy them your post Debt Dr? thanks

Simply pass the information to your Official Receiver's office...let them deal with DWP.

It is the OR's job, after all?