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Posted: Tue Jul 28, 2009 5:37 pm
by T-H87
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?
Posted: Tue Jul 28, 2009 5:41 pm
by ivas4us
it can be included in an iva so don't see why it wouldn't be written off.
Posted: Tue Jul 28, 2009 11:03 pm
by MelanieGiles
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!
Posted: Wed Jul 29, 2009 8:37 am
by kallis3
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.
Posted: Wed Jul 29, 2009 11:18 am
by Adam Davies
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
Posted: Wed Jul 29, 2009 11:19 am
by T-H87
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.
Many Thanks For Your Help
Posted: Wed Jul 29, 2009 3:19 pm
by MelanieGiles
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.