Having problems with tax credits after I have been made bankrupt...please help!

Kerry511

Just found this which would suggest I have a firm case!




https://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch37-48/chapter40/part2/part_2.htm#40.44

Kerry511

Hi guys
Just another update (might help someone else in this situation).....

Tax credits complaints department called me and said they are paying pack the money that have taken since my bankruptcy order :-)
They have suspended recovery until the bankruptcy department for tax credits has updated my file and will take no more money off me to pay off the overpayments

Also they have sent my bankruptcy details to relevant department and added they are hopeful that the overpayments will be written off but they will write to me in due course to confirm this.


Hope this is the end of the matter.

It's been a good day today :-) Hope your all having a fab day too ;-)

debt_doctor

Hi Kerry,


Have been away a few days so only just saw your PM.
Seems like common sense (and the law) has prevailed. Your overpayment is certainly a bankruptcy debt and it is right that they should cease deductions and refund you.


DD

Kerry511

Hi seatbeltnoob

Firstly I would like to point out that I did not plan an overpayment of tax credits and then go bankrupt. I was on tax credits for a period in my life that I needed support financially. I was still working but had split up with my children's father (which lead to the overpayment) I claimed as a single parent whilst I was still working. I never lied to tax credits they continued to pay me till the end of the year. I feel if the tc system was simpler they would not be overpaying!
As soon as I found out about the overpayment, I stopped claiming and I was paying them.
Despite struggling I still continued to make these payments every month until I fell behind with my other commitments and the same with my husband! (Husband is not the father to 3 of my children) but has been amazing and supported us all.


Secondly who are you to judge me? I was simply looking for advice.
You did not have to post that. But thank you for reminding me that there will always be someone out there ready to kick you when your down!

I did what I thought was Best Buy taking control and sorting my finances out. It was not a decision that I made overnight!
I struggled for years before going bankrupt.
Being caught in a cycle of debt may be partly my fault but i tried every way to pay back my debts to a point I become depressed and no longer cared which lead to me gambling (as I needed money faster that what I could provide) My daughter was diagnosed with autism and I had to give up work after maternity leave (something I really miss doing as I have always worked) I was not given a choice (I had to become a Carer) I had to do something about it and thankfully their are people out there that understand there are situations that will not improve.

Bankruptcy is there to give people the freedom they need. If you have never been in such a situation then you would not understand!

I hope you never have a life changing event in your life that leaves with no ther option other than bankruptcy. Clearly you are perfect in everyway!

I totally agree there are people committing fraud (which is wrong) Thise people are caught and severely punished in court!
However that was not what I did and if this was planned I would have gone bankrupt years ago instead of wasting 5 years living on a minimum to pay into a dmp to clear the debts!

I am sorry you have this opinion and felt the need to add that to my post. More importantly I do not think it is fair for you to judge that everyone who has an overpayment of tc and declares bankruptcy is doing so just to simply to avoid paying it back once they have rinsed the system for what they can get. All our situations are very different :-(

Danw20

Hi kerry511

Sorry I know this is an old thread.

We are experiencing the same problem as you had, we’ve had our recovery stopped now but are still awaiting confirmation of the overpayment removal and any money refunded to us. I was just wondering if you had your money returned to you and how long it took them to return it to you.

Thanks