Bankrupt & AOE

Miss_Reason

Hi all,

Really in need of some advise please as totally out of my depth.
I was declared bankrupt in Nov ‘18 and have a IPA in place for the next 3 years paying back £280 p/m.
I have this morning received a letter from DWP saying I owe nearly £4K and an AOE has already been sent to my Employer for 20%of my monthly wage to be taken from me.
This will leave me with nothing once household bills have been paid. I have had no previous notification about this debt and as far as I am able to work out the last time we had benefits was back in 2012, they are saying it is an overpayment from them.
Am I able to stop the AOE and pay an agreed amount with then that is more affordable.

I really am at my lowest now after trying to get back on my feet after the Bankruptcy order.
Thank you!

Oliver2809006

Hi - I'm no expert but if the DWP payment is enforced which I would presume you would have to pay with instalments but then affects your monthly surplus.

Every chance then the IPA would be stopped as a result.

Think you'll be ok and avoid one of them - IPA payments or DWP payments.

TheGardener

If the benefits overpayment was prior to BR then it should fall into the BR unless they have determined/proven it was a fraudulent claim? Are they aware you are BR?

You need to speak to the OR and tell them about this - they will advise and adjust your IPA if required.

Miss_Reason

Thank you for your replies. I’m so stressed out by all this. Going BR was a huge step for me and this has just knocked me down again.

I have been trying to get hold of DWP now for days but it says they are very busy and to call back later!! I would of thought as they found out who my employer was they would also be able to see that a BR order was made against me in November?? Do you advise me continuing trying to contact them or let the OR contact them??

Called the OR yesterday and the lady said she would try to get a case worker to call me back, as of yet nothing. She was very confused how they can go straight to the attachment of earnings as I have had no notification of this overpayment.

I always kept the DWP informed throughout my claims so confused as to how the overpayment ever occurred.

Could it be that the OR puts a stop to the attachment of earnings as I am paying the IPA. Can the OR do this with historical overpayments of benefits??

debt_doctor

Hi,

As the gardener says, if this debt is prior to your bankruptcy then this is a bankruptcy debt (providing it is not for a social fund loan - and I doubt it as 4k would be a very large social fund loan)

The DWP (and HMRC) are notoriously useless when it comes to insolvency. Once they are aware of your bankruptcy don't waste any time in making a complaint.

Complain here: https://www.gov.uk/government/organisations/department-for-work-pensions/about/complaints-procedure

If any money is taken from you, it must be returned to you.

DD