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[Colls10]

Hi. I declared myself bankrupt in January 2021. I have received my bankruptcy declaration and all is recorded ans have had my phone call with receiver . I was self employed until I had to pack it all in , in October 2020. Virus stopped my business ever getting going . One mental health suffered considerably,

Waiting for pip claim to go through. My only income is benefits . My wife works but the debtis all in my name . The council have just realised ( after I made a few complaints ) that they have underpaid since August 2019, and have issued a payment of £904 . Do I need to inform the O/R ? This is the only income I get from benefits and this payment is from under payments for over a year ( may have helped me at the time !!)

Also, there are arrears on the housing benefit account from a few years back for £430. I wanted to ideally use some of the £900 to clear that off. The housing benefit claim is in joint names for self and wife . So- do I/we get to keep the £905 back payment of housing ?

The arrears ( overpayment ) from years ago of £430, I mentioned this in the bankruptcy , but as it’s joint , do I presume this will remain a debt , and can we use any of this £900 to clear it ??

Thank you anyone

[Geraldine]

Hi Colls10

If you have received a backpayment of benefits, you will be able to keep this. The official receiver can't take benefits income you have received (either a regular payment or lump sum due to previous underpayment).

If you want you can use some of this to pay the £430 housing benefit overpayment. You are paying your wife's liability which is fine. It is perfectly acceptable to do this because the money does not form part of your bankuptcy assets.

Hope this helps.

[Colls10]

That’s brilliant , thank you for this , I missed the reply . I have emailed the OR, and they are now contacting the council for clarification . Thank you, and this is what I also presumed