Terms & Conditions

[Anonymous]

I’m sure I’ve seen a thread regarding this issue but can’t seem to find it!

[Anonymous]

If the o/p was created prior to the customer becomming bankrupt then it can be recovered, if after then can be considered from “write off”.

[petedavies]

Try

new.hbinfo.org.com/forum/viewtopic.php?t=8052
new.hbinfo.org.com/forum/viewtopic.php?t=7600
new.hbinfo.org.com/forum/viewtopic.php?t=7869

[Anonymous]

Cheers folks!

[Anonymous]

Right, I’ve read the links (and I posted in one of them!), and I must admit I’m still confused… (doh!) 🙁

In the case I’m looking at the overpayments occurred before the bankruptcy order… we originally recovered via instalment recovery, the claimant then came off HB , so an invoice for the remainder was subsequently issued… this invoice was sent out some months BEFORE the bankruptcy order but was included in it… so, is this invoice still valid; can we still recover?

[Anonymous]

I would still say yes, as original o/p created prior to bankruptcy.

[Anonymous]

Ta

Would I use the Steele case to support my assertion that the debt can still be recovered regardless of insolvency order?

[seanosul]

If the invoice was included in the order then then you cannot recover as the invoice is being paid through the creditors order.

[Anonymous]

A member of staff here has historically been responsible for dealing with all aspects of any debts owed to the council when a bankruptcy order comes in.

For example there could be a Ctax debt, a Housing Benefit overpayment and a Sundry Debtor account for miscellaneous debt.

She has always asked me to provide her with the details of my debt (HB OP) that is prior to the bankruptcy date and this is then passed for write off together with any other debts that also pre-date the bankruptcy.

Any debt I may have after the date of bankruptcy is still chased by me for repayment.

I am not an expert on bankruptcy and have been confused myself with regard to recovery from ongoing entitlement when someone has been declared bankrupt, although what I have now read today on this thread seems to have cleared that up.

I have to assume that as thisa person has always dealt with bankruptcy that she is the specialist and so her instructions to me are correct.

[seanosul]

Caroline you are correct to continue as before; the issue is recovery from ongoing benefit and not recovery by invoice.

Linda, I think you have this the other way round. Were the overpayment to have been created after the bankruptcy recovery would continue as normal. Where the overpayment was raised prior to the bankruptcy depends on whether there is on going recovery.

[Anonymous]

Right…

As the debt has been transferred to invoice (after the termination of instalment recovery), and that invoice is included in the solvency order, we cannot recover the debt?

Can we recover through other state benefits she may receive? (Attachment to benefits)..

Sorry to drag this out, but I’m really confusing myself here and want to get things straight before dealing with this debt…. 🙁

Cheers

Andy

[seanosul]

If it is part of the order you the Receiver is recovering it for you. How much you get (if any) after any priority debts, Court fees, Receiver fees, etc are also collected is a different matter.

[Anonymous]

Thanks Sean,

Sorry to drag this out, but if we decide to pursue recovery through deductions from other state benefits, wouldn’t this method be exempt from the general bankruptcy order?

[seanosul]

Steele does not cover this and is very explicit about not covering this.
The major difference with your case and Steele is this

[quote:2793f77650]
I turn to a separate point. In my judgment, it is not necessary on this appeal to express a view on the question whether section 71 supersedes any remedy at common law. Mr Steele’s liability under section 31 arose after the bankruptcy order was made against him. That liability cannot therefore be a bankruptcy debt which was released on his discharge from bankruptcy. In my judgment that would be the position even if there were at the date of the bankruptcy order a separate liability at common law to repay benefits overpaid; and that liability constituted a provable debt (as to which I express no view) which was released on Mr Steele’s discharge or was displaced by the determination of the Secretary of State under section 71(1). In other words, if Mr Steele were to be subject at the date of his bankruptcy order to a liability at common law, and thereafter to a liability under section 71(1), I do not consider that those liabilities should be treated as a single, continuing liability for the purposes of section 281(1) of the Insolvency Act 1986. If the position were otherwise, the Secretary of State might find that the liability to him under section 71(1) had been released before he had ever made the determination. [/quote:2793f77650][/b]

[Anonymous]

😳

[Author]

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