TAX credit overpayment-

devonsdreamer

I have just read that tax credit overpayments can be included in BK -

I am the one in recipt of our tax credits but OH name is also on it as he is the one that works (I guess that makes it a joint claim) I have assumed it would not be "written off" any one know otherwise?

creditmonkey_2

Yes i would say they can be included in bankruptcy, But would seek advice from CAB first,Hope this helps best of luck!.

everyonesmum1

yes it does get written off, ours did last week when we went bankrupt, but if you dont both go bankrupt it will come back to the unnamed BR. xx

devonsdreamer

thanks - that was what i thought- that my hubby would be responsible for it now - just thought it was worth asking in case i was wrong on this one. Just had my renewal and we owe nearly 3k- seems every year we owe them money even though i tell them everything they need to know- silly system that it is

betterlatethannever

I agree DD, its atrocious.
one of the biggest causes of my BR was all the mess ups with various benefits.:mad:

Someone on the benefits board is saying they did the same as you and informed them of all the changes, yet still ended up in arrears. They've said they are going to appeal.
Personaly i think its time more took a stand on this, it really annoys me:mad:
(rant over)

savagevixen

everyonesmum1 wrote: »

yes it does get written off, ours did last week when we went bankrupt, but if you dont both go bankrupt it will come back to the unnamed BR. xx

Hi,
I have just discovered that the overpayment I have repaid since discharge, may have been reclaimed incorrectly, and I am sending in evidence to prove our date of discharge.
I included the £1000 overpayment on our forms, which were stamped by the judge. The amount was reclaimed by around £4 per week, for around a year. Then we went BR. Throughout this period it continued to be claimed back at @£4 per week. After BR discharge, our circumstances changed and they upped the amount they claimed back to around £85 per month. I complained unsuccessfully. Between Nov 2007 and March 2008 they reclaimed the remaining balance of @£550.
Is this a benefit that can be fully incuded, or is it like the Housing Benefit, whereby, for the period you are undischarged it can be taken off your existing benefit.
I have to contact them with our discharge details, but given the responses, where people indicate the whole debt is included, I am now wondering. As I understand it, I am asking them to look at the amount reclaimed SINCE discharge. Or should I be challenging the whole amount?
Any Ideas?

Addicted2Chocolate

It is not straightforward. You need to tell your examiner i) when overpayment was incurred ii) date of notice of overpayment (letter notifying you of overpayment and their intended recovery) iii) whether you have an ongoing claim for tax credits
These 3 factors cam decide whetehr it can be includd in the bankruptcy and whether the HMRC proove in the bankruptcy and whether they deduct from ongoing tax credits.
I dont have access to the technical notice from home. If you pm me with the facts I can check the notice for you and reply. All it says in the technical manual is:
Overpayment of tax credit may be recovered from any award of tax credits payable to the person upon whom the notice of overpayment was served