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Alleged benefit overpayment and bankruptcy

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  • Alleged benefit overpayment and bankruptcy

    I have been having an ongoing battle with the DWP and CCS for the past 4 years. It seems to be a yearly thing that the DWP write to me saying I owe a debt for overpayment of unemployment benefits from 1998, I say no I don't then they get the debt collectors involved. I tell them its statute barred and I went bankrupt in 2007 then they go away for another year. However this year they seem very determined and will not let it drop. They seem to think me going bankrupt is immaterial and they should still be able to recover this money (which I know nothing about by the way). They say that because the debt to them was not listed in my bankruptcy it cannot be considered. The official receiver however says all debts are wiped by bankruptcy.

    They also sent an attachment of earnings to a previous employer.

    Anyone have any idea what I should do?

    Thank you
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  • #2
    Re: Alleged benefit overpayment and bankruptcy

    Originally posted by eddiemc10 View Post
    I have been having an ongoing battle with the DWP and CCS for the past 4 years. It seems to be a yearly thing that the DWP write to me saying I owe a debt for overpayment of unemployment benefits from 1998, I say no I don't then they get the debt collectors involved. I tell them its statute barred and I went bankrupt in 2007 then they go away for another year. However this year they seem very determined and will not let it drop. They seem to think me going bankrupt is immaterial and they should still be able to recover this money (which I know nothing about by the way). They say that because the debt to them was not listed in my bankruptcy it cannot be considered. The official receiver however says all debts are wiped by bankruptcy.

    They also sent an attachment of earnings to a previous employer.

    Anyone have any idea what I should do?

    Thank you
    Hi Welcome to LB

    Unfortunately although a " government " debt DWP/HMRC does become unenforceable via the courts the Welfare Reform Act authorises the government departments concerned are empowered to recover debts however old and use debt collectors to do if need be.

    They can issue attachment of earnings orders and make deductions from current and future benefits without recourse to the courts.........

    nem

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