Help debts after dro has been awarded
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Helen145_2
Posts: 8 Forumite
in IVA & DRO
Hi, today I found out that I owe 202 tax credits for year 2016 17, my dept relief order went through March this year. I had no idea I had this debt and hmrc are demanding payment I have set up a repayment plan with them on the phone but now relalise it was not the right thing to do but will cancel this. Do I need to inform the insolvency agency or pay them or what? Does this mean my dro will be revoked? How will it be viewed? I’m panicking as usual.
You guys are always great x
You guys are always great x
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Hi, today I found out that I owe 202 tax credits for year 2016 17, my dept relief order went through March this year. I had no idea I had this debt and hmrc are demanding payment I have set up a repayment plan with them on the phone but now relalise it was not the right thing to do but will cancel this. Do I need to inform the insolvency agency or pay them or what? Does this mean my dro will be revoked? How will it be viewed? I’m panicking as usual.
You guys are always great x
Tell the OR.
The law doesn't allow you to add a debt to your DRO. This means you must make separate arrangements to repay this debt. Your creditors can also continue to take action to make you pay the debt which was missed off the DRO.
https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/debt-relief-orders/while-a-debt-relief-order-is-in-place/forgotten-a-debt-dros/0 -
Hi, today I found out that I owe 202 tax credits for year 2016 17, my dept relief order went through March this year. I had no idea I had this debt and hmrc are demanding payment I have set up a repayment plan with them on the phone but now relalise it was not the right thing to do but will cancel this. Do I need to inform the insolvency agency or pay them or what? Does this mean my dro will be revoked? How will it be viewed? I’m panicking as usual.
You guys are always great x
Unfortunately what you did is probably the best option.
I take it there was no tax credit debt in your DRO?
Provided this debt (£202?) does not take you over the £20000 limit, there will be no effect on your DRO.
As long as the payment plan you agreed is affordable, stick with it.0 -
Hi I just checked unfortunately there are two debts listed with hmrc one rather large for overpaid housing benefit and the other I think a previous tax credit
What will happen?0 -
Hi I just checked unfortunately there are two debts listed with hmrc one rather large for overpaid housing benefit and the other I think a previous tax credit
What will happen?
Overpaid Housing Benefit would be owed to the council. If this was ever found to be a fraudulent overpayment it would become live again at the end of the 12 months.
Some unscrupulous councils try to get debtors to admit fraud if the debt goes into a DRO - so just be aware of that.
If there is already a tax credit overpayment in your March 2018 DRO, would this not have included the 16/17 overpayment?
May be worth a chat to your Intermediary to see if they can do anything here.0 -
Well don’t talk to me about the council they are the reason I had to go for a dro in first place, it was very suspicious as they said I had a second job, yes I was registered but earned nothing from that job and that’s how they claimed an over payment had happened. If you ask me it is them who commit fraud! I took my zero wage slips in too. I received a letter saying it was written off.
As for hmrc you’re correct and it could even be the same overpayment not even sure. It doesn’t even say on the letter what period but on phone said 2016 2017 but I only got a letter today?? I think the other is from the previous year. Not sure what should I do? Primary concern being that dro being still in place can it be revoked over it?0 -
Well don’t talk to me about the council they are the reason I had to go for a dro in first place, it was very suspicious as they said I had a second job, yes I was registered but earned nothing from that job and that’s how they claimed an over payment had happened. If you ask me it is them who commit fraud! I took my zero wage slips in too. I received a letter saying it was written off.
As for hmrc you’re correct and it could even be the same overpayment not even sure. It doesn’t even say on the letter what period but on phone said 2016 2017 but I only got a letter today?? I think the other is from the previous year. Not sure what should I do? Primary concern being that dro being still in place can it be revoked over it?
Why would it be revoked?
Can you go back to the intermediary who did your DRO and say 'I've had this letter about a tax credit overpayment. Is it already in the DRO or can it be added if not?'
You can't add a new debt to an existing DRO but if it's the same creditor with the same reference number and the debt pre-dates the DRO, then it's worth an argument.0 -
Thanks for reply, I’ve come to conclusion that it maybe the same debt I included on dro which was originally 200 but I’d paid 100 off before it went on dro. So they might be claiming the same debt full amount? I’m going to call hmrc and ask them to investigate tomorrow before I inform the OR because I’m not entirely sure it isn’t the same debt, obvious now I think about it. Thanks for highlighting this out to me. I don’t know what I’d have done without the support of this forum over my dro :T0
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If I was your intermediary, I'd do this for you.
I would tell HMRC this was in the dro, not ask them.
I wouldn't involve the insolvency service at this point.
If hmrc want to get the insolvency service to amend the balance, they cam do that. You can't,
It's possible that hmrc will get awkward here and it's better that someone else handle them if possible.0 -
Hi sorry for delay but I’m posting this for anyone who might need the info. I phoned the OR and they said they couldn’t include hmrc back dated debt even tho I have a date in the dro with hmrc a debt even from before the dro issued is still a debt you have to pay so I’m doing that. They said it was right to call them.
On a different note my partner purchased a car this week receipt in his name as I cannot purchase a car and have no money to purchase a car. For insurance purposes the v5 is in my name and I tax it but I am not the owner. I had to do this to get insurance. Do I need to tell the OR about this too? Even though I do not own the car. I need it for work as my car worth 500 has failed it’s mot?0 -
On a different note my partner purchased a car this week receipt in his name as I cannot purchase a car and have no money to purchase a car. For insurance purposes the v5 is in my name and I tax it but I am not the owner. I had to do this to get insurance. Do I need to tell the OR about this too? Even though I do not own the car. I need it for work as my car worth 500 has failed it’s mot?
Hi,
No, i did exactly the same thing, you don`t have to tell anyone.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0
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