Tax Credits

markymark59

Hi all, have been discharged for 10 months now, just recieved a overpayment bill for tax credits which most of were while bankrupt. Does this come into my bankruptcy or do i have to pay it all? Thanks in advance for any advice.

tacpot12

 This link suggests that overpayments made in tax years after your banrkuptcy order will have to be repaid, whereas those in the tax year (and prior tax years) of your bankruptcy will not have to be repaid (unless the claim was fraudlent):

Guidance on new overpayment and bankruptcy “From debt update from Expert Advice team” - Nucleus Legal Advice Centre

I think in the first instance I would try to get some specific advice from a Debt Charity, e.g. StepChange, and then contact the team trying to collect the overpayment and tell them what part of the debt you want to repay (because you have to) and what part you regard yourself as no longer liable for and see if they agree. Once they have agreed on the amount, you can arrange a repayment plan.  

markymark59

Thanks for the advice tacpot12.