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| T O P I C R E V I E W |
| Wendy.su |
Posted - 21 January 2011 : 21:16:18
Does bankruptcy clear debts such as council tax and over paid social security benefits please, |
| 10 L A T E S T R E P L I E S (Newest First) |
| Niobe |
Posted - 03 April 2011 : 19:24:03
Glad it has been of use Mikey.
Double, double toil and trouble;
Fire burn, and cauldron bubble.
Jan
xx |
| kentmikey |
Posted - 03 April 2011 : 18:49:04
Very usefull information here, thanks
Mikey |
| zaccolbert |
Posted - 22 February 2011 : 16:45:07
Some good information here cheers guys, get so many conflicting bits of advice sometimes but this is pretty clear and concise, nice one |
| Reviva UK |
Posted - 24 January 2011 : 23:43:49
Seeing a lot of clients now being chased for Council Tax, AFTER discharge.
They have surrendered the mortgaged house to the lender, gone bankrupt but after discharge the council are pursuing folk for Council Tax as the lender ( usually Northern Rock ) won;t confirm that the house has been surrendered.
I can understand an odd case but when there are LOTS there seems an underlying strategy from lenders to try to skip paying Council tax themselves.
Others might say that by not formally "reposessing" the property it still shows on their books as a delinquent payer rather than a £50k shortfall.
Intersesting times
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
08454 751 851
Real People ..... Real Debt Solutions |
| debtinfo |
Posted - 24 January 2011 : 21:56:42
Except with council tax, if the whole year has become due for any reason, (for instance under a liability order), then the whole of the remaining year after the bankruptcy order is also included in a bankruptcy order |
| Bigal4787 |
Posted - 24 January 2011 : 21:46:56
Hi Tracey, Paul,
yes can be a complex area, especially when so many people who are bankrupt are on benefits and tax credits as well, who have been overpaid.
If anyone queried tax credit overpayments we had to refer them direct to HMRC.
Big Al
Insolvency examiner with the Insolvency service from April 2008 - July 2010.
If you need help completing SOA's(statement of affairs) or PIQ's(preliminary information questionnaire) if you've been declared bankrupt, or anything else and you're within 30 miles or so of Warrington, then please contact me via my contact details in the expert page for futher details"
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| Skippy |
Posted - 24 January 2011 : 09:51:30
Thanks for that BigAl, I've made this topic a 'sticky' as this information is really useful.
View my blog at http://skippy13.blogs.iva.co.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 - it's over at last! |
| Reviva UK |
Posted - 24 January 2011 : 02:41:02
Thanks Al
Crystal Clear now, No wonder so many government agencies interpret the rules differently depending upon your location.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
08454 751 851
Real People ..... Real Debt Solutions |
| Bigal4787 |
Posted - 23 January 2011 : 23:40:23
Hi Wendy,
council tax debts are included in bankruptcy, but only up until the date of the order. After the date of the order you are still liable.
As for overpayment of benefits, the following is a simplification of the rules:
1. If the benefits were awarded, and paid prior to the bankruptcy order(BO) date, and recovery action commenced prior to bankruptcy, then they can be included in bankruptcy. However, it should be noted that the relevant agency can continue to make deductions from ongoing benefits until discharge. After that they cannot make deductions, and the balance claimed in bankruptcy.
2.If the benefit was awarded prior to bankruptcy, and started payments prior to bankruptcy, but recovery action began after the BO, then it cannot be claimed in bankruptcy.
3.If the benefit was awarded prior to bankruptcy, but payments and recovery action began after the BO, then again it cannot be claimed in bankruptcy.
4. If the benefits, were awarded, after bankruptcy, payments started after bankruptcy, and recovery action began after the BO, then again it cannot be included in bankruptcy.
As for tax credits, if the recovery of overpaid tax credits was to be from direct collection(i.e through tax only) then HMRC will submit a proof of debt, and claimed in bankruptcy.
However, if the recovery is being made through already awarded tax credits, then HMRC will continue recovery until the date of discharge, after which the balance will be claimed in bankruptcy.
Hope this helps
Big Al
Insolvency examiner with the Insolvency service from April 2008 - July 2010.
If you need help completing SOA's(statement of affairs) or PIQ's(preliminary information questionnaire) if you've been declared bankrupt, or anything else and you're within 30 miles or so of Warrington, then please contact me via my contact details in the expert page for futher details"
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| Niobe |
Posted - 22 January 2011 : 09:27:56
I think that you can include council tax debts up to and including the date of BR but anything after that you would have to sort out yourself.
Not sure about the benefits though. One of the experts should be able to assist there.
Buckle your seat belt Dorothy, 'cos Kansas is going bye bye.
Jan
xx |
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