Bankrupt & overpayment with tax credits… help!

Lills2507

Hi all

so my husband and myself were declared BR in October 2020, and everything went smoothly quite the relief if im honest. We spent years trying to fix it ourselves and it just wasn’t happening so we had to bite the bullet last year.

fast forward to today July 2021, I have received a tax credits renewal which I didn’t pay much attention to as we aren’t entitled to anything at the moment, but on the last page it says about an overpayment which must be collected from us.

I wasn’t aware of the overpayment, so I’ve rung them, the year which it relates too is 19/20 so before BR they advised I contact the OR and they will pass it over there end, is it likely it’ll be included with the BR because I have only just told them about it? 

If it is included will it effect any future payments I may receive from them as I am due to start a new job in September which will be submitting a childcare cost claim to TC (I have checked and we would be entitled to help with the costs) 

I don’t want to upset the apple cart and have the debt written off it it’ll mean we can’t get help in the long run…

help 

 

sourcrates

Hi,

If the debt was from before you were bankrupt, then yes, it vested in your bankruptcy.

Bankruptcy is an all encompassing thing, so even debts you didn`t know about were all included in it.

You need to write and tell HMRC this, you have to be persistent with them as things take a while to sink in.

It will not affect any future claim you may have.

Lills2507

sourcrates said:

Hi,

If the debt was from before you were bankrupt, then yes, it vested in your bankruptcy.

Bankruptcy is an all encompassing thing, so even debts you didn`t know about were all included in it.

You need to write and tell HMRC this, you have to be persistent with them as things take a while to sink in.

It will not affect any future claim you may have.

Thank you, I have emailed the OR and when I rung TC they didn’t say much other than they will pass it to the Insolvency unit. 

So hopefully they’ll get in touch, but if I don’t hear anything I will write to them then I’ll have a paper trail.

thanks again, it’s all so frustrating and struggle to get a straight answer from anyone at the offices.