CT and HB overpayments

brimau_2

I went BR on 22 May. On my BR forms for the court I had included my Housing Benefit and Council Tax Benefit Overpayments. The judge stamped it. The OR however was very unsure about the inclusion, she admitted she may have a guide book that is out of date!!

I got a demand from the council offices on Friday. I rang them and pointed out the fact I was now bankrupt but they are ADAMANT that I still have to pay it. See the attached. Its a DWP circular issued to ALL local authorities and is clearly dated Feb 2008.

http://www.dwp.gov.uk/hbctb/circulars/2008/a3-2008.pdf

Am 'enlightening' both OR and Council on Monday

debt_doctor

You are right you do not have to pay it back ( unless fraudulent ) and thanks for such a useful document !

DD

fermi

I'm surprised you hadn't seen that DD.

I suppose DWP are doing their best to avoid mentioning it. :rolleyes:

debt_doctor

Thats the great thing about this site Fermi ! I enjoy giving my time on here but quite often find really useful knowledge on here that we ( the bureau ) dont know- we get loads of training in cons credit act, insolvency,etc etc but documents like the one mentioned are a rare thing ( I seem to remember that it was you who alerted me to the Balding case in the first place ! I then sent it round the office !)

To be honest CAB'S do not see that many post BR clients problems, I have become my bureau's post BR expert - wonder where I get my information from ! :rolleyes:

DD

brimau_2

Ok...I am now officially SCREAMING!!!! My OR is as thick as .... She has read the document and spent ten minutes on the phone to me wittering that i may actually have to pay back. Pardon??!! From what I asked her? 'Benefits' was her reply. I AM NO LONGER ON BENEFITS I yelled. I cannot possibly pay the £240 a month for CT (this years and last) as they are demanding. It will definitely leave me with financial hardship beyond words. her next comment made me just want to cry. She said perhaps I should get advice from the British Legion again. Is it me? Am I going mad? Whats her job supposed to be then?? I read that circular and I am sure it reads right. Not liable. No fraud committed. can someone please talk sense to me. i'm having the most horrific day because of this. I feel like the BR was totally pointless and I have the doziest OR in creation.

scaredwitless32

Can you not ask for this issue to be passed to someone a little higher at your OR's office? Sorry I have no experience of this sort of thing

brimau_2

According to her..she has already consulted her 'boss'. I am now of the opinion she may be referring to the admin assistant!!! I know I sound horrible but I am so upset and frustrated by all of this. I thought BR would curb the stress factor.....but its worse!

scaredwitless32

"I thought BR would curb the stress factor..."

It would of done if your council were not involved somewhere, they seem notorious for being difficult to deal with on these boards......someone will be along with some good advice soon, try not to let it get to you , I know its hard and dam frustrating, but it wont do you any good.
Perhaps you should write the OR at the office that is handling your BR you can get their name from the web, maybe that will get things moving abit?

brimau_2

The Council office staff are refusing to 'acknowledge' the circular too. Can they do this? I feel like I'm being ganged up on. If I had the money I would have paid it. No qualms. I had no option but to go BR and even then it was paid for me to do so by a charity. The roundabout just gets faster.

diablobear

Reading here in the current Insolvency Service Guide to Bankruptcy

If you are made bankrupt, you must not make payments direct to creditors. Creditors to whom you owe money when you are made bankrupt make a claim to your trustee (that is, either the
official receiver or an insolvency practitioner). They should not ask you directly for payment; if you receive any requests, pass them immediately to your trustee to deal with and tell the creditor
that you are bankrupt. There are some very limited exceptions to this non-payment rule. The main ones are:

• benefit overpayments, where the benefit provider can recover any benefit overpayments from any further benefits you receive until you are discharged, when you
  will be released from these debts.

I could have read this totally wrong, but from what is written in the guide and the circular -
I understand it as - if you are no longer in receipt of these benefits, they are unable to recover this overpayment from you via your future benefit payments. So therefore your CT & HB overpayments are essentially included in your BR. If you did not fraudulently obtain these benefits, then you should be released of of the HB & CT overpayment debts when you are discharged.

Can understand your frustration.

brimau_2

Sadly it seems as though the very people who should be reading and using these guidelines ...are not :-(