Universal Credit advance Payment and Bankruptcy

mhuss202020

Hi all, 
Does anyone know if Universal Credit will automatically stop taking payments for advance payment once I've been made bankrupt? Do I have to send them anything in writing?
Thank you

JCS1

I'm on phone so can't check easily at moment. This needs a bit of internet searching as not all benefit overpayments/advances are included in BR

limdylou29

Good evening, I can only tell you what happened with mine. I was declared bankrupt last may 2020.
After about 6 weeks I notified UC I was bankrupt as my OR informed me it was included. They held the advance for 3 months then took it again, so I then messaged on my journal letting them know basically that it was included in my bankruptcy. It was then removed from my UC again. It’s stayed that way so far 😊

mhuss202020

Thank you so much for responding. Limdylou, did the OR tell you during your interview or at a later date that it was included?  It's really early days for me, only just had the interview, so I will wait to hear or try to pluck up the courage to call and ask.  

Minkym00

JCS1 said:

I'm on phone so can't check easily at moment. This needs a bit of internet searching as not all benefit overpayments/advances are included in BR

Agreed, what was the reason for the advanced payment?

JonVarnas

Universal Credit advances will be included in the bankruptcy, loans from the Social Fund will not.

I had a DRO in September and included both a UC advance and a tax credit overpayment. The Insolvency Service contacted the DWP and a week later both payments were stopped. Your best bet is when your bankruptcy is approved is to contact the DWP immediately via the journal and let them know because I'm not sure if the OR will contact them.

mhuss202020

Thank you for taking the time to respond.  Minky, The overpayment was an old Housing benefit issue and the advanced payment was basically to get me through the month, as, in addition to that HB deduction, a chunk of money was deducted (£105.00) as I now have a spare room in my home as my son recently moved out. I have registered with home swap to downsize and with the local authority as I'm a Housing association tenant and sadly, I can't afford this extra cost at this time.
The deduction has come out again, which I thought it would as it's still early days, so I will write a note on the journal and hopefully, this will not happen next payment.  
Thanks again, most appreciated!



 

Deniseee83

What happens if it’s a joint claim but only me who had gone bankrupt? I I’ll the advance be owed as it’s a joint claim 

liggerz87

If joint claim and you go bankrupt they will pass it to the other person I'm not sure if that 100npercent right but iv read that it happened a few times so take my advice with a pinch of salt