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james100
Starting Member
15 Posts |
 Posted - 22 October 2009 : 20:47:19
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| Hi i am due to go to court tommorow to declare bankruptcy however i am slightly unsure regarding one aspect, I am bein investigated by the tax credits department as they say i need to repay an overpayment of tax credits i have asked them for the amount so obviously i can add it to my forms but they wont tell me and are saying i may not get a decision till the full investigation has been completed which could be as late as february. My wife and i are definately going to go bankrupt tommorow as were in a desperately awful situation that we cant carry on any more with our debts. Could u please let me no if u are aware that I can add it later or will i be forced to go bankrupt a second time in february im slightly confused and dont no what to do for the best. |
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In 2 Deep
Junior Member
United Kingdom
161 Posts |
Posted - 22 October 2009 : 21:14:31
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Hi James, and welcome.
When you speak with the OR be sure to mention your current predicament with Tax Credits, and take along any paperwork you have relating to this matter to court tomorrow.
You will not have to go BR again, and any debt will be added in due course.
Good luck and post back about your experience in court tomorrow.
quote:
Originally posted by james100
Hi i am due to go to court tommorow to declare bankruptcy however i am slightly unsure regarding one aspect, I am bein investigated by the tax credits department as they say i need to repay an overpayment of tax credits i have asked them for the amount so obviously i can add it to my forms but they wont tell me and are saying i may not get a decision till the full investigation has been completed which could be as late as february. My wife and i are definately going to go bankrupt tommorow as were in a desperately awful situation that we cant carry on any more with our debts. Could u please let me no if u are aware that I can add it later or will i be forced to go bankrupt a second time in february im slightly confused and dont no what to do for the best.
Treat EVERY Penny as a prisoner. |
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debtinfo
forum expert
2826 Posts |
Posted - 22 October 2009 : 21:30:13
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Hi im afraid this is not quite right (sorry in2deep).
As you have not received a final acount and a request to repay the money (given that they have not fnished their investigation) it will not be included in the bankruptcy, You will remain fully liable to pay. |
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debtinfo
forum expert
2826 Posts |
Posted - 22 October 2009 : 21:33:44
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Here is the relevent bit of the Official Receivers technical manual
Category 2 - The benefits are awarded and paid to the claimant before the date of the bankruptcy order. The decision that the overpayments are recoverable is issued after the bankruptcy order date.
40.102C Summary of the treatment of overpayments of state benefits
The following table provides a quick reference table for dealing with overpayments of state benefits in relation to the making of the bankruptcy order (“BO”):
Category
Award made
Award paid
Recovery decision
Treatment by official receiver
1
Before BO
Before BO
Before BO
Provable debt, recovery can continue until debt released upon discharge*
2
Before BO
Before BO
After BO
Not provable, recovery action to be decided by benefit authority
3
Before BO
After BO
After BO
Not provable, recovery action to be decided by benefit authority
4
After BO
After BO
After BO
Not provable, recovery action to be decided by benefit authority
*If the category 1 overpayment arose as a result of fraud the debt is provable in the bankruptcy proceedings but would survive discharge and the debt would still be enforceable against the bankrupt [Note 15].
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In 2 Deep
Junior Member
United Kingdom
161 Posts |
Posted - 22 October 2009 : 21:40:50
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Hi Debtinfo,
Does this mean James will have to forfeit this debt from the BR?
What would be is best option going forward?
Thanks.
quote:
Originally posted by debtinfo
Hi im afraid this is not quite right (sorry in2deep).
As you have not received a final acount and a request to repay the money (given that they have not fnished their investigation) it will not be included in the bankruptcy, You will remain fully liable to pay.
Treat EVERY Penny as a prisoner. |
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debtinfo
forum expert
2826 Posts |
Posted - 22 October 2009 : 22:05:27
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| The debt will not be provable in the bankruptcy (if i was cynical i would say that the investigation is maybe waiting for the bankruptcy to go through first) during the bankruptcy they will not be able to take any action against him (without leave of the court). However the debt will not be discharged with all the others and after discharge they can take any of the normal actions. If he could hold the bankruptcy of until he gets a formal demand to repay then the rules would be different, but not sure if this is a possibility |
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Jane.l
Average Member
511 Posts |
Posted - 23 October 2009 : 08:40:50
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yes, I had a tax credit overpayment written off in my bankruptcy, but the debt was from 2005/2006. I went bankrupt in 2007. I was not receiving any more tax credits and was repaying this amount back at £50 per month. The OR was not even sure if it was to be included in the bankruptcy but after checking with the tax credits people, I found it was.
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In 2 Deep
Junior Member
United Kingdom
161 Posts |
Posted - 23 October 2009 : 14:21:42
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James,
Let us know how you got on in court when you get the chance.
Hope it went well.quote:
Originally posted by james100
Hi i am due to go to court tommorow to declare bankruptcy however i am slightly unsure regarding one aspect, I am bein investigated by the tax credits department as they say i need to repay an overpayment of tax credits i have asked them for the amount so obviously i can add it to my forms but they wont tell me and are saying i may not get a decision till the full investigation has been completed which could be as late as february. My wife and i are definately going to go bankrupt tommorow as were in a desperately awful situation that we cant carry on any more with our debts. Could u please let me no if u are aware that I can add it later or will i be forced to go bankrupt a second time in february im slightly confused and dont no what to do for the best.
Treat EVERY Penny as a prisoner. |
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james100
Starting Member
15 Posts |
Posted - 23 October 2009 : 19:05:12
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Hi went to court today and bankruptcy went through felt really bad being there and the admin staff dealing with the papers checking them through etc treat u very badly and found very awkward literally checking over every single item on the forms. Other than that were now bankrupt. Just nervous now regarding wat is going to happen next regarding the OR we have a telephone appointment he will call within next 48hrs so imagine it'll be next week now? just very nervous about whether any baliffs are going to call in the meantime and take any possessions. Does any one know whether the OR will instruct baliffs or what happens down that route??
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 23 October 2009 : 19:35:58
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Hi James
congratulations and welcome to the rest of your life !
we had BR approx 3 months ago.
The OR is obviously busy and it takes time to notify your creditors, some of ours have still not been officially told.
we still get the odd phone call or letter but it is a nice feeling to just quote the court reference number, but so much less hasstle from the whole industry no having to hide at knocks on the door or refuse to open letters or avoid phone calls.
we are just keeping low profile for the year and learning how to respect money better
we were pleased to have a "friend" at our OR interview it really helped keep the situation relaxed
Richard |
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james100
Starting Member
15 Posts |
Posted - 23 October 2009 : 20:00:05
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Hi thanks for the reply. it does feel like a relief just waiting now to see what happens with the OR next week. were slightly worried about baliffs etc and if there going to come round, we have a very young baby and i get a bit worried about leaving my wife and baby at home when im at work incase next week a baliff turns up when im not there in case they get to pushy. did u have any baliffs coming to take anything once u'd declared bankruptcy? hope u dont mind answering just were totally new to all this and never expected 2 be in this position
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 23 October 2009 : 20:31:45
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Do not worry about bailiffs - they are most unlikely to show up and just show them your BR order if they do.
The only goods they can take, as mentioned by gettingoutofdebt on another post, are any secured by HP.
The glimmer gets brighter all the time
Jan
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In 2 Deep
Junior Member
United Kingdom
161 Posts |
Posted - 23 October 2009 : 20:32:02
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James,
as stated in your other post, the court will not send in bailiffs. The OR will appoint a trustee if you have any assets where he can realise equity for your creditors. The only bailiffs likely to call are those appointed by your creditors, and now you are BR you are protected so do not worry.
Gd luck.quote:
Originally posted by james100
Hi thanks for the reply. it does feel like a relief just waiting now to see what happens with the OR next week. were slightly worried about baliffs etc and if there going to come round, we have a very young baby and i get a bit worried about leaving my wife and baby at home when im at work incase next week a baliff turns up when im not there in case they get to pushy. did u have any baliffs coming to take anything once u'd declared bankruptcy? hope u dont mind answering just were totally new to all this and never expected 2 be in this position
Treat EVERY Penny as a prisoner. |
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Hi i am due to go to court tommorow
