Will bankruptcy write of tax credit overpayment already being recovered

debt_doctor

Hi,
Thanks for the PM Fermi.
Am I right in thinking that the overpayment was created from your claim as a single person following a relationship breakdown?

If so, the recovery can only be taken from you.
A tax credit overpayment cannot be taken from someone who was never part of the claim that the overpayment originated from.

When you become bankrupt your liability will cease, No one else will be liable.

If deductions continue after your bankruptcy, you will need to complain (after trying to sort it out on the phone with tax credits - good luck with that!)
If you need to complain, pop back on here and I will provide you with the correct procedure, address' etc.
DD

jontycalv1975

Hi DD and thank you for coming back to me.

Yes the overpayment was created from my single claim after a relationship breakdown. I was blissfully unaware of it for years, until like i say they contacted me and not long after advised it was to be deducted from my joint claim with my present partner. This has been going on for a few months now and i have been told several different things by tax credits about what will happen with it once i am declared bankrupt. Ranging from, ' it will stop until i am discharged and will then carry on being collected from my present award ' to 'it will not stop at all as i am still named on a claim so it will carry on being deducted from that'. To be honest i dont think the staff i have mentioned it too have a clue.

Again thanks for coming back to me

kind regards

Jonathan

owlet

Your payments should cease from the day you are made BR. In reality, this probably won't happen but you will be able to claim back any payments from your BR date. Keep a note of deductions & dates. The law is the law and it's on your side

Hazeldawn71

Just to say I was made bankrupt earlier this year and overpayments are not included. Sorry.

tigerfeet2006

Hazeldawn71 wrote: »

Just to say I was made bankrupt earlier this year and overpayments are not included. Sorry.

Hazel, I suggest you have a really good read of this post and the links.

egrescrimp

Hazeldawn71 wrote: »

Just to say I was made bankrupt earlier this year and overpayments are not included. Sorry.

I assume your tax credits claim is a joint one and the other person isn't bankrupt?

tigerfeet2006

egrescrimp wrote: »

I assume your tax credits claim is a joint one and the other person isn't bankrupt?

That would make sense.

Stacicollins66

Hi was this resolved in the end ?
I am currently going through the same thing.
They are now saying that my husband is liable for the overpayment and are continuing to reduce are award by 50%. The overpayment was from my single claim from 2008. I have spent many hours on the phone to them but they won't budge. Any advice of where to go from here.
Many thanks

debt_doctor

Hi,


You will never get anywhere with a government agency unless you use (and keep with) the complaints procedure.


The procedure is here:


https://www.gov.uk/tax-credits-appeals-complaints/complaints


DD

Hazeldawn71

Hi, my bankruptcy is now done but they applied my overpayment to my husband so we are still paying it back, but without the other debts to worry about its much easier. Good luck. :money: