Confusion over tax credits repayments.

pcoventry

I appreciate this might have been asked before but I think my situation is sort of unique so I wanted to start a new one.

Since March 2018 me and my partner have been paying back a Universal Credit advanced payment (£1175)- We also both have Tax credits to pay back (not sure why, we did all the honest figures and still got stung) but anyway in December 2018 I went Bankrupt - the DWP told me this April they can and will still take payments from me for the tax credits and they also continue to take £49 a month from me for the advanced payment.

Now I have told them I am bankrupt - and they have for now stopped the payments, but they say they can and will chase me after discharge for the rest of the what's owed.

I split with my partner in May and we have seperate claims - we both pay £49 a month back currently.

In regards to the overpayments - the Insolvency Service tech manual framework states they are not allowed to carry on taking money from me one I am bankrupt - and that I could have a claim to claim it all back - is this right or have I read it totally wrong?

This is to what I refer https://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch37-48/chapter40/part2/part_2.htm#40.49 and in particular 40.43 - 40.47 which is a table

The advance was March 2018 with the decision to claim back by monthly payments also made the same time - now that leaves me to believe that it's provable debt and no recovery - but right now my account is messed up and they are still taking payments from me even though I believe I have already paid the full amount and more.

So I need to contact them and sort this but please can you tell me if I am wasting my time or not in regards to the payments from December 2018 to now. As I understand it the only time they can carry on taking payments is if there is fraud, which there isn't in my case

Thank you

sourcrates

DWP are incorrect.

Only when the overpayment period is wholly after the date of the Bankruptcy order will the overpayment not be considered as included in the order and normal recovery action could commence.

An overpayment period prior to the bankrupcy, or during it, would see the DWP having no remedy to recover that debt, and it would be included in the bankrupcy order.

Only if fraud is suspected, or the recovery period is past your discharge date, can they recover a debt included in bankrupcy.

pcoventry

Thank you for the clarification. During the time i was working everything down to the hours and the pennies were included - and they were notified every time there was a change. I now need to start the mammoth task of trying to get someone to listen in order to try and get this over payments stopped and money returned. I know the OR won't have any claim as it's money from benefits. The amount they have taken since I went BR is just over £600

pcoventry

I called them today and had a rude response so I have had to fill out a complaints form and will be contacted in the next 5 days apparently. The woman on the phone said it was not a debt or a loan as there was no interest added to it. So I asked her why was I paying back money which was not a loan? At that point she got a bit !!!!!! so I terminated the call and told her it was because she had no clue what she was talking about. The debt has been paid in full but I do believe I am due it back from BR date until now - as well as tax credits - but we will see

pcoventry

DWP have been taking advance payment deductions AND tax credits from before I was BR - I have argued this and I am waiting for someone to come back with a definite answer but it was my understanding this shouldn't have happened.

I finished paying the loan back last month but that's still 7 months I think I over paid - i was told that they would resume taking money when I am discharged!

Is Debt Doctor around? I need someone to actually back me up on this one if all the above is correct.

TheGardener

Try a private message to DD.

debt_doctor

I'm on it!
Does this useless organisation ever learn??

DD

pcoventry

Unfortunately not. And thank you!

pcoventry

DD now in touch - I hope with his help I can get the money back they took from me being naughty and knowing they couldn't! I suspect they were hoping I was too stupid to challenge it.

pcoventry

Took the letter in - apparently they just wanted proof of my BR and I thought ahead and printed my order out - they didn't know the IS register existed!

They do now! - let's hope I get some money back soon!