We received an ammemded tax credit award notice in March-April of 2009 telling us we had been overpaid and that they intended to collect the outstanding amount from future awards by reducing our payments.
This was one of the main reasons for us deciding to go bankrupt and included it in out bankruptcy on the 29th April 2009.
I was of the understanding that because we were informed of there intention to claim the money back by reducing future awards before our bankruptcy date that it would be included in our bankruptcy and be written off once discharged.
Since then we have continued to have our TC payments reduced to pay towards this overpayment.
Can anyone clarify if the amended tax credits award notice stating they intend to collect overpayments by reducing payments from future awards is enough to show that they made the decision to claim the payments back before us going bankrupt.
I sent them a copy of this award but they are saying they did not make the final decision to claim the money back until 28th May, a month after we went bankrupt.
Surely the amended tax credit award stating they are going to reduce payments is notice that they intend to claim this back so can be included in the bankruptcy.
just a further point, maybe not pertinant here but in general, there was a ruleing recently saying that where the decision to collect repayment was before the bankruptcy order they can no longer collect by deductions after the bankruptcy date which is a change to recent history
Hi thank, I have just rang them as I still disagree with what they are telling me.
They say as I went bankrupt on 29th April 2009 and there final decision was not made to collect the overpayment until May 2009 I still have to repay them.
I told them they informed me they intended to reclaim the money in a letter I received in Feb 2009 so that was before the bankrupcy by 2 months and they reduced our payment on the 10th April 2 weeks before going bankrupt to start repaying the overpayment. Surely I am right and this should be written off and I should not have had the reduction these last 2 years.
Anyone? Basically all I want to know is if they started reclaiming the overpayment by reducing my current payments before the date of bankruptcy should this also of been wiped clear.
It seems to me that they do not have the right to claim this, if all the dates you have provided are correct, as it should have been covered by the bankruptcy.
Thanks for the reply Viki, they just rang me back and told me I still have to pay the oustanding amount back because there final decision to claim the money back was in May a month after the date of bankruptcy.
Still not happy, they informed me Feb they had overpaid me and were going to claim it back, took the first payment 10th April I went BR 29th April and they made there finall decision in May. Seems like there just claiming this to get money back. I thought any debts that I had made payments for before they BR were covered hence the payment they took on 10th April.
Tax Credit Overpayments
Posted - 15 January 2012 : 16:46:43
