Hi I am going to go bankrupt in the next couple of days was just wongering what will happen to my tax credits over payment. I owe them £1500.00 from 2006.They sent me a notice to pay in 2007 but have not heard from them since. Will this debt be written off?
It depends upon when the determination of the fixed award is made. I would have thought a debt as far back as 2006 would be captured under bankruptcy proceedings, but the tax credits system is complex that sometimes I wonder if HMRC actually know how it works!
I think you are right Melanie. From what I have read on the sister site, as long as it was pre BR, it can be included.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi
Even in an IVA it is a bit of a grey area
Melanie can you just confirm that Council Tax arrears can and should be included in an IVA, even current year arrears ?
Regards
Thanks alot for that. Can you also please tell me if I put my tax credit over payment with the list od unsecured debt. I am sure I do but dont want to get there tom and find out its wrong.
Council tax becomes payable on 1 April each year - and legally at that time you owe the whole lot. So technically all council tax arrears - including the unpaid portion of the current year can be included in an IVA.
In reality, as the local authorities allow the payment to be made by instalments, the current year is generally included as on ongoing expense.
