Housing and C/Tax benefit overpayments

fermi

savagevixen wrote: »

I have tried to read the notes and I don't really understand the point being made (sorry-not really with it!) The Balding case appears to be related to Income Support, which is absolutely nothing like Housing Benefit or CT ben.!

It can appear that way at first.

But the most important points of law made in the ruling are general regarding benefit overpayments. They are not only applicable income support. It just happens that it was the benefit in question here.

fermi

As far as I understand it the point of law is not even limited to "state benefits".

A bankrupt is released from all the bankruptcy debts on his discharge from bankruptcy: section 281 of the 1986 Act. The legislative policy is to wipe the slate clean and, broadly speaking, enable the bankrupt to make a fresh start (paragraph 48(i)). The case does not fall within any of the express exceptions to discharge, such as fraud.

There is no legal exemption to prevent the bankrupt being released from C/Tax and H/benefit debts upon discharge under s281 of the IA86 either. At least that appears to be the case anyway.

I'm sure they will do their best to wiggle out of it though.:rolleyes:

fermi

savagevixen has found this which I hadn't seen yet.

Link: DWP - Recovery from customers who have been declared bankrupt

Some extracts.

Recovery of overpayments after discharge from bankruptcy – following the ‘Balding’ judgement

Court of Appeal judgement

6 On 13 December 2007 the Court of Appeal handed down their judgement, in which they determined that recovery from a person who is declared bankrupt should cease on that person’s discharge from bankruptcy provided that the

• overpayment is not classified as fraudulent, and
• overpayment recoverability decision was made before the date of bankruptcy

How to check whether a case is affected

10 The three categories into which an overpayment can fall when an individual is made bankrupt and then discharged are

a the overpayment period and overpayment recoverability decision are both prior to the date of bankruptcy

b the overpayment period is prior to the date of bankruptcy but the overpayment recoverability decision is made after the date of bankruptcy

c both the overpayment period and the recoverability decision are after the date of bankruptcy

11 This decision only applies to category a and only when deductions have been made after the date of discharge. It does not apply to cases classified as fraud.

Action to take on affected cases

12 Once you have identified a case affected by this decision you should

• take action to stop recovery with immediate effect
• confirm the date of discharge from bankruptcy, and
• refund any monies recovered after the date of discharge

13 Whilst it is possible that information regarding the date of discharge is already held on file, it is recommended that you write out to the customer asking them to provide evidence of their date of discharge. If they do not know this date, the customer may need to contact the person or organisation that dealt with their bankruptcy.

savagevixen

And I have deleted some of my posts prior to finding this info, as they were of no help to anyone!!

fermi

savagevixen wrote: »

And I have deleted some of my posts prior to finding this info, as they were of no help to anyone!!

Finding that updated info was a massive help.

I have a feeling that it should really apply to cases they refer to under type (b) as well. May need to do some asking around on that.

brimau_2

Guys, What can I say? You are all so helpful and knowledgeable, I am still a bit muddled but all I can do is try. I will be hopefull going for bankruptcy next week and the Overpayments will definitely be included. I am just awaiting my funding for the court fees (army charity). Once I have 'done the scary deed' I will let everyone know exactly whats what. Thanks again.