Housing and C/Tax benefit overpayments

brimau_2

Can these be included in the bankruptcy? Hasn't the law and legislation recently changed regarding benefit overpayments? I am going BR next week. Personal debt £7.5K, but recent addition of benefits overpayments to tune of £5.5k has really forced my hand into bankruptcy.

FeelingLow

hi & welcome i'm not sure i thought that over payments were included but i could be wrong, i'm sure somebody with better knowledge will be alone shortly

betterlatethannever

Hi Brimau.

Theres some 'light' reading HERE about benefit overpayments.

It does seem that you might have a fight on your hand, but that link above provides you with a template letter to use, if needed, and some great advice.

It should be included in your debts on your SOA, but theres still seems to be some confusion with ORs whether overpayments can be included.

Good luck.

brimau_2

You area total star! Thank you sooooo much :-D

savagevixen

Hi,
I included mine in my BR. Housing Benefit overpayment of £800, and Council Tax OP of £450. The judge stamped the document, and I had put them down. However, they were not included and I had the overpayment clawed back throughout the period I was undischarged, and I now (1 year later) am paying back the remaining £400. I have paid the council tax off (today!!!). At one point I refered letters from the Housing Benefit office to the OR, who said that the money did have to be repaid, but they had to be respectful, I was advised to forward mail to the OR. However, this was pointless as all it did was result in a letter from the OR that said the overpayment was our responsibility and they could do nothing.
So that was great. And as I went BR for 'only' £7000, perhaps a little unnecessary.

brimau_2

My Housing overpayment is £4,473 and the Council tax is £1109!!! As it stands at present I have nil to pay creditors (total £6.5K debts) where I would find payment money for the council, god only knows! I am no longer entitled to benefits so they can't do reductions from nothing. Am starting to panic again now._pale_

betterlatethannever

:eek: thats a huge amount of overpayment.

Again though, if you look at the link i did it states that the Balding case was heard in Nov 07 and Savagevixen went BR well before that date, so you might be lucky. (and unlucky for SV)
The only problem that might arise is if the benefit was claimed fraudulently.

Might be worth getting some more advice on this from National Debtline Tel: 0808 808 4000

fermi

To the best of my knowledge the information in the betterlatethannever's link is the correct legal position taking into account the recent rulings on benefit overpayments in the Court of Appeal.

If you wish to get a clearer opinion on this, then you would probably be best to consult the Insolvency Service's enquiry line and/or a professional debt advisor who is familiar with bankruptcy (see my signature).

In either case, when asking it would be wise to quote the court of appeal ruling in the Balding case here (CO/7636/2006) since some advisors may still be unaware of this.

EDIT: Missed BLTN's reply when I went hunting for links.

brimau_2

It is huge yes. The whole of last years benefit to be exact! They did not include my pension payments into the calculation even though i gave them my P60. They said its my fault for not realising there was an error in the calculations. I had never claimed a bean in my whole life and was clueless as to what was too much or too little. They have totally destroyed my faith in the system.

I have had amazing support all the way from CAB and 2 other charities (one of which stated i had to add the council debts in my BR). I will just keep my fingers well and truely crossed. I am going BR as soon as the charity funding for the court fees etc arrives. Hopefully by next weekend. My papers arrived today and I will start completing them tomorrow. Wish me luck!!

savagevixen

brimau wrote: »

My Housing overpayment is £4,473 and the Council tax is £1109!!! As it stands at present I have nil to pay creditors (total £6.5K debts) where I would find payment money for the council, god only knows! I am no longer entitled to benefits so they can't do reductions from nothing. Am starting to panic again now._pale_

EEEK! That is a lot. We had an arrangement set up, it didn't matter how long it lasted, but it was £5 per week for 3 months and after that £9 per week... I offered £40 per month DD, and that was fine. I think that under the circumstances, and given the amount, there must be another way of dealing with that debt. Although you don't receive benefits now, I imagine (from what you have said) that you are on a low income, and something can be done about that amount, as frankly it is ludicrous.
#Similar thing happened to my friend last year, they failed to include tax credits, although she had sent them in, they overpayed £2000, as she still gets benefit this is recouped by a small amount per week. Rubbish though.

brimau_2

I have no actual 'income'. I'm not working. I am surviving on an army pension, maintenance (from errant husband), incapacity benefit, child benefit and child tax credit. These alone only just cover my rent, utilities and day to day living costs. There is nothing left for creditors.