Bankruptcy – Part of debt already recovered.

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  • #21457
    Anonymous
    Guest

    Where a claimant is declared bankrupt during the course of HB overpayment recovery, but recovery continues for a period because confirmation is received late, is there any requirement/obligation to refund that part of the debt which may have been recovered since the bankruptcy date?

    #5314
    Anselmo
    Participant

    Mick,

    if the claimant is going through the bankrupty process but has not yet been discharged then you may well be entitled to [i:d040a097bb]carry on recovery[/i:d040a097bb], never mind repaying what has been recovered.

    If the person has been discharged from bankruptcy however, then you have probably lost your opportunity to recover and may well have to repay what has been recovered since that time.

    It’s all a bit complex, but is really well explained in the following document, to be found on this site:

    https://hbinfo.org/library/ops_insolvency_and_ops_taxcredits_ps.doc

    The whole of it is a fascinating read, but pages 9 to 18 are probably essential reading for anyone dealing with this sort of stuff. Apologies if you’ve already read this document but if not you should definitely check it out.

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