Child tax credits/Bankruptcy

[MrV]

Can anyone help and shed some light on this.

A friend of mine went bankrupt back in 2007 among her creditors where HM revenue ,she had been over paid child tax credit and was paying it back by them with holding what she was actually due until the over payment was cleared.

Now I was under the impression that if you go bankrupt you make payments to your creditors then when your discharged that's the end of the debits ?

It came up in conversation today that they are still withholding her payments even now (she was discharged in August 2008) so can they still do this or are they in the wrong ?

[freecar]

you can't go bankrupt from money you owe HM GOV, taxes, parking tickets, fines and I assume child tax credits all go into the pile of "never escape" debt

[ali_kat]

MrV said:

Now I was under the impression that if you go bankrupt you make payments to your creditors then when your discharged that's the end of the debits ?

It came up in conversation today that they are still withholding her payments even now (she was discharged in August 2008) so can they still do this or are they in the wrong ?

Kinda, and

The bankruptcy clears her debts. It then depends on whether the OR gave her an IPA, if they did then she has to pay that for 5 years, if not then she is in the clear - ie no payments.

Has she told them that she has been discharged? I've no idea about that area of it to be honest (no kids!)

Drop a line to lovelyladyhayles who may be able to advise you better.

[MrV]

Thanks for the pointers,I guess it wasn't an IPA as it was only make payments back for 6 months then apply to be discharged.