Going bankrupt with benefit fraud debt

Foxton30

Hi,

I’m new here and is desperate need of help.

7 years ago I left my abusive ex husband. Throughout our marriage and relationship I claimed as a single parent. This was due to me having zero financial help from ex and him taking whatever I was getting. I was in an awful position, my mum had just died (I was 19) and I was raising two children practically alone. I’m not trying to excuses but I was in a horrible situation.

Fast forward im now happily married with another child.

I live in his mortgaged house.

I don’t work but have started volunteering. I have been diagnosed with borderline personality disorder.

I currently owe £18k for council and housing benefit. It’s currently with bristow and sutor and I pay £30 a week out of the allowance my husband gives me. They want to put it up in 6 months.

I owe £6k income support/tax credits roughly (been paying that back for years).

I am losing sleep over it. I’m so embarrassed that I feel like I can’t talk to husband about it. Plus I wouldn’t expect him to help me as he works bloody hard and already pays for us to survive.

I don’t know what to do. I can’t imagine being with bristow and sutor forever, they are bloody awful. Iv asked on other places and they tell me not to pay them and wait until it goes back, but I feel sick and the thought of living on edge.

TheGardener

You need to talk to one of the free debt charities. StepChange, CAB (one that has a debt specialist) or NAtional Debtline. Have you done that yet?

Foxton30

Yes I spoke to CAB and they recommended it. But I was too embarrassed to admit it’s from fraud. I need to pull up my big girl pants and speak to them again.

sammyjammy

You say live in your husbands mortgaged house, this isn't strictly true and you could be considered as having beneficial interest in the property if you went bankrupt.

The attached link suggests your benefit overpayments due to fraud would not be included in bankruptcy anyway.

https://www.stepchange.org/debt-info/debts-included-in-a-bankruptcy.aspx

TheGardener

Yes, you need more advice. Unfortunately debts that arise from proven fraud are not able to be included in bankruptcy.

Foxton30

I don’t understand how I would have a beneficial interest as I have never paid a penny towards it and it was bought before we got together..

Minkym00

Were you prosecuted for the fraud? If not were you given a reason why?

[Deleted User]

Foxton30 wrote: »

Hi,

I’m new here and is desperate need of help.

7 years ago I left my abusive ex husband. Throughout our marriage and relationship I claimed as a single parent. This was due to me having zero financial help from ex and him taking whatever I was getting. I was in an awful position, my mum had just died (I was 19) and I was raising two children practically alone. I’m not trying to excuses but I was in a horrible situation.

Fast forward im now happily married with another child.

I live in his mortgaged house.

I don’t work but have started volunteering. I have been diagnosed with borderline personality disorder.

I currently owe £18k for council and housing benefit. It’s currently with bristow and sutor and I pay £30 a week out of the allowance my husband gives me. They want to put it up in 6 months.

I owe £6k income support/tax credits roughly (been paying that back for years).

I am losing sleep over it. I’m so embarrassed that I feel like I can’t talk to husband about it. Plus I wouldn’t expect him to help me as he works bloody hard and already pays for us to survive.

I don’t know what to do. I can’t imagine being with bristow and sutor forever, they are bloody awful. Iv asked on other places and they tell me not to pay them and wait until it goes back, but I feel sick and the thought of living on edge.

Any debts owed to the DWP due to fraud will not be included in a bankruptcy, so unless you have other significant debts it won't work.

RattyIrk

They will ask questions about the house to see if they believe you have a beneficial interest. It will be for you to satisfy them you don't.

I had a similar scenario (in principle anyway, circumstances different) where the property was in my partner's name and I genuinely had no interest in it. They asked questions, I answered openly and I have not heard further on the house point. My bankruptcy year not over yet but that was a number of months ago. I found them thorough but fair.

Foxton30

Happy to answer any questions regarding the house, I have zero interest or input in it.

Ok, so I don’t mind continuing paying it, i don’t want them (Bistow and sutor) to keep upping how much I pay each week. Can I do this?

TheGardener

Foxton30 wrote: »

Happy to answer any questions regarding the house, I have zero interest or input in it.

Ok, so I don’t mind continuing paying it, i don’t want them (Bistow and sutor) to keep upping how much I pay each week. Can I do this?

Anything to do with the house is irrelevant. You need advice from a professional debt adviser on how you will repay the DWP debt given you don't have an independant earned income.