Tax Credit Overpayment help 28 January 2022 at 9:34AM in Bankruptcy & living with it 6 replies 357 views

Samirish

Hi all,
I have a question regarding an overpayment of tax credit (although I think I know what the answer may be).
So firstly I went BR on 12 Feb 2020 and was DC 12 Feb 2021.
I was advised in June 2021 that I had been overpaid tax credit for the period Apr 2020 to Mar 2021.  They asked for payment in Oct 2021 (to which I rang them and asked for 60 days breathing space which was given).  The debt has now been passed to a debt collector who has asked I contact them to arrange payment.
Now I realise that not all of the period when I was overpaid falls within my BR, but am I able to include any of the debt in the BR...or none at all (as I'm expecting).  Thank you.

sourcrates

It is my understanding that these debts can’t be collected or enforced if you previously went bankrupt.

However, it often seems to be the case that DWP chose to ignore this and deduct money from any ongoing benefits to recoup the debt they say is owed, or as in your case, farm the debt out to a collector.

If this happens, then unfortunately it seems very difficult to argue against it.

However, if it were me, I would write to the DCA telling them the majority of the debt falls within your bankruptcy period, and is therefore uncollectable, and to inform their client as such.

If you continue to have difficulty you should contact the official receivers office that dealt with your case.

Samirish

Thank you for your reply, I'll do that.

Just one question...what does DCA stand for? 🤦🏻

sourcrates

Samirish said:

Thank you for your reply, I'll do that.

Just one question...what does DCA stand for? 🤦🏻

DCA - Debt Collection Agency 

Minkym00

The liability was incurred after your bankruptcy order as your question states the order was February 2020 and the overpayment began in April 2020. Therefore none of it can be covered by your bankruptcy. 

sourcrates

Minkym00 said:

The liability was incurred after your bankruptcy order as your question states the order was February 2020 and the overpayment began in April 2020. Therefore none of it can be covered by your bankruptcy. 

Got my dates wrong, thanks for the correction.

jkepple

I also had this problem, despite providing religiously all the information required.
The only way I got rid off these idiots was to get my local MP involved.
Once that happened, it really put the frighteners on them....I still had to pay, but nothing like the amount they wanted as they found they had made errors 'on closer examination'..