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Can I Include Overpayments Of Benefits In Bankruptcy?
Question:
I was on incapacity benefit from 2004 to 2007 and committed benefit fraud by working in those periods, this is my first offence. I have been on income based JSA since Dec 2010 and have been interviewed on this matter. No legal action or council involvment yet?Due to myself being on incapacity benefit, I am due overpayment of housing benefit which was paid direct to my private landlord over a 3 year period and overpayment of full council tax for a 3 year period.
Can I include on a first time bankruptcy my overpayments of housing benefits and council tax due over the admitted 3 year period?
Answer:
You can include previous years council tax in bankruptcy, and overpayment of benefits, if you are not currently receiving those benefits and don’t plan on doing so in the future, as they may not grant them.
Some debts due to criminal activity or fraud may not be allowed in bankruptcy, so as to if you can include the debts you mentioned, as they were incurred due to fraud, I am unsure.
If for any reason they did allow the debts to be included, the Receiver in your bankrupt may issue a restriction order keeping you under the restrictions of bankruptcy longer than the usual 12 months. The restriction order can be for up to 15 years.
Thank you for letting me help you.
Jon
If you have a bankruptcy question you’d like to ask, just ask using this online form. All help is free.
Source: Can I Include Overpayments Of Benefits In Bankruptcy?