Tax credit repayments

Momofthree wrote: »

May have spoken to quickly....

Tax credits have just called me again to say that as of husbands discharge date (18th April 2019) they will be reinstating the overpayment repayments out of our tax credits.

They said tax credits are not included in the rule of 'writing off' debts after BR and only suspend overpayment recovery during the first 12 months.

Going to call husbands OR today but im back at square 1. Im gutted to have to do this all over again.

Im fairly confident i am right but they claim they have got this info from official receivers office. Please can anyone shed any light?

*just to confirm no overpayment is due to fraudulent claims.

Thanks
L

How stupid can a Government organisation be? They are beyond embarrassing!

I think it is perhaps time to involve your MP. They have caseworkers who could take this up on your behalf - Also the OR should be in touch with HMRC too - but doubt that will happen. At least ask the OR for written confirmation that your tax credits are a bankruptcy debt.

DD

Tax Credits are wrong on the procedure they outline. Whilst the overpayment needs to have occured prior to bankruptcy - the recovery / discovery or decision that an overpayment occured does NOT have to be made prior to bankruptcy.

Their position would be correct in the case of a DRO.

See the technical manual here - look at 40.47

https://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch37-48/chapter40/part2/part_2.htm#40.44

DD

Mumofthree how you doing with all of this?

I have sent a complaint to tax credits for all of our hassle. Basically we can’t change the name of the creditor from tax credits to ‘DWP’ as they want it to (DRO this is) mine has been closed as in insolvent from bankruptcy but DWP are dragging their heels until they get a copy of the DRO from us which we are in the process of sending. I don’t know why tax credits can’t talk to DWP as they have definitely received it. It’s like they are being as awkward as possible.

So this month I rang DWP overpayments hotline as they took ‘£124’ instead of the £20 we agreed to. Apparently the £20 was only a temporary 6 month thing and they decided due to affordability we could afford the 124 again?!?! Even though we weren’t sent a letter to say the payments were going up nor did we get an income or expenditure form to say what are our outgoings. I am pretty sure to a family of four with one salary and tip up benefits deducting £124 when nothing has changed is never going to be affordable??? So after half an hour of the clueless guy on Saturday keeping us on hold he said he will send the refund to his ‘team leader’ who has 10 working days to approve it then 5 more working days for it to reach us. I’m
So disgusted with them. I need to pay some bills and feed my children.

On the plus side my husband has now got a job and depending on when he is getting paid we may never receive another payment again from them and be free of benefits. I don’t envy anyone having to rely on these full time we were on tax credits for a few years and then had a break then UC for a year now but hopefully never again they way they treat people. Rant over!

On another note I’ve received my third (in a six month period) parking fine saying I’ve been parked for longer than 3 hours when I haven’t been on any of the occasions. I appealed, again, and sent another letter of complaint to the DVLA 🤣 I feel better now getting all of my complaining out of the way.

Thanks for updating well, I am going to send them the DRO with tax credits listed as a creditor to DWP and see what they say. It’s clear that even though it says tax credits that it is the same debt.

The only thankful thing is we are now moving from UC to my husband earning so they will have to chase him separately for the debt and I would hope if it ever got to court stage that the judge would tell them they are being ridiculous and of course the debt is written off as part of the DRO. Such a pain.