Tax credits debt

74leeboy

Hi guys, I'm now 2 years post bankruptcy and everything is going great , there is light at the end of the tunnel.  A friend of mine is considering bankruptcy and asked if a working tax credit debt would be covered in a bankruptcy. She is married and they were over paid and have been paying it back. Would it be covered in bankruptcy or would her husband still be liable for it ? I wasn't sure so said I would ask you knowledgeable lot. Thank you

mwarby

https://www.gov.uk/hmrc-internal-manuals/tax-credits-manual/tcm0224040

"Any tax credits overpayment will cease to be recoverable from the date a person enters bankruptcy."

I believe the only exclusion would be if the overpayments were due to fraud

edit - there is also this "If the customer is a member of a joint household then, if only one customer has been declared bankrupt, the tax credits overpayment will continue to be recovered from the other customer. This is because both members of the household are jointly and severally liable for the overpayment."

So yes husband is likely to be liable, apologies for multiple edits

74leeboy

Thank you. I thought as much, but wanted to check for her