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In the process of my bankruptcy i was off work sick - i had to claim benefits - when i went back to work the benefits agency told me they had overpaid my housing benefit & council tax - this amounts up to £800+ i declared that i was back at work and now they want payments made - do i just tell them i am now bankrupt or do i offer them some kind of payment?

Your c/tax and housing benfit over payments will be included in your Bankrupcy providing they accurred prior to your bankruptcy date.

Carl

If the benefits agency made the mistake themselves and overpaid you then that is there fault and they can ask for it to be repaid but cannot insist! I know these things - trust me!

If the HB and CTB were paid direct to a landlord in the case of HB and with Council Tax this is an interal transcation at the council - they should recoup the money from the source it was paid to.. the Regulation number i cant remember buts in the rules for Housing and COuncil Tax benefit.
It may be worth exploring this with the Citizens advice team

Sounds like the overpayments were made after the date you were made bankrupt? If the debts are valid, the you cannot avoid them in the bankruptcy, as will need to make arrangements with the Council to deal with them directly. If you have an Income Payments Arrangement or Order, payments to post-bankruptcy creditors will not be allowed, so you will need to fund these out of any share of the disposable income the OR has allowed you to retain.

I once had to claim incapacity benefit, and like you, told the benefits agency when I had been accepted for a new job. I completed the forms and sent them off. 2 weeks later, I checked my account and they'd paid me again. So I called them, and they said they never recieved the form. So this time I went into the office, completed the form and gave them a cheque for the overpaid amount. 2 weeks later another payment went in. Called them again. We never received the form or cheque they said. Had a rant and explained that I had physically given them these things. Filled out another form. Gave them another cheque. Got a receipt for both! Payments stopped. Cheque never got cashed. Phoned them every week for 6 months. Please cash the cheque. Cheque still never got cashed. Eventually got sick of it all, confirmed with the bank that the cheque was no longer valid and spent the money.

1 YEAR later!!!, I get a court summons because I owe them money. Called them, explained what had gone on, said I had proof. Lo and behold, court summons gets cancelled, and I tell them (not ask), that I will pay them back at a rate of £10 per month (it was all I could afford at the time).

So, I did pay it back. After all, it wasn't my money. But they had to wait for it and accept my terms for repaying it.

So I would suggest calling them, explaining the situation and seeing what you can organise with them before you start to panic.

Good luck mate.

As long as you are making your best efforts to repay them, they are usually quite fair. Theres a section on the benefits website somewhere which explains the rates it can be paid back at based on what benefits you actually recieve now. You have to hunt for it but it is there. A friend of mine was overpaid by £7000 and pays them back at £30 a month and they seem happy with that and havent hassled her for any more.

mrs skint

If the overpayment of benefits was their fault you do not have to pay it back

Housing benefit and council tax benefit is paid by the local authority and not the Benefits Agency. The only things they pay is mortgage interest. They are now called Job Centre Plus just to keep you guessing.
It would be the local authority that has overpaid you so you would need to speak to them about it.