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75k debt ..and in turmoil
i am on a debt management programme and currently doing fine on it , problem is i now have been sent a letter from civil service of whom i used to work for stating i have been overpaid for 7 years and now owe them total of 53,800.20p, my total bebts would be around £75k, i have just got married own (mortgage) home hp car and pay my debt management, i am so stressed and now thinking i need to declare bankrupt, there is no way i can pay it back, what will i loose?, i dont want to loose my home also i have my step daughter living with us permanently, so she would loose her home too, im just so worried , also how will we live if they freeze our accounts we both work full time so wages go in or mortgage is our bank account too, this has come as a total shock and so worried i dont know the best way to resolve it.any ideas?
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Response
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3Hello Liz.
Thank you for your enquiry, this is certainly a very delicate matter and I can appreciate the shock you must have experienced on receiving this demand and the stress this must be causing you.
What follows should be considered general advice only and is as much for the benefit of other readers who may have a similar problem (I can only hope they are few and far between). You must get your own independent advice and I would suggest contacting either a solicitor with employment law experience or going to see Citizens Advice without delay.
Having said that, the situation may not be as grave as it seems: Employers can legally pursue the person for the overpayment of wages. However, the employer has to prove that there was a genuine mistake and that the employee was aware of the overpayment and there is a provision in your contract of employment that gives them the right to reclaim an overpayment. If there was no provision in the contract then the employer may have significant difficulties in enforcing payment if the person ( you in this case) refuses to co-operate. The employer might then take the matter to court as a civil claim.
I need to ask you not a particularly pleasant question - but do you feel you may have been responsible in any way? You will need to be absolutely up-front with your advisor about this right from the outset, if you are to get accurate, helpful advice.
Here are some useful weblinks that explain the situation in more detail:
http://www.payroll-help.com/faq/deduc...
http://www.payroll-services-centre.co...
http://www.lemon-co.co.uk/article_ove...
If you decided the overpayment was correct and that you need to repay, then there is no obligation to repay in one lump sum. However, if the overpayment was correct then it would entirely change your debt situation and you should contact your debt management company immediately and ask to be re-advised on the basis of this new information and change in circumstances. It is highly likely that you should seriously consider alternatives to any debt management programme.
There is also a possibility that this debt, if it was all incurred more than six years ago, could be statute-barred: which means your former employer could not reclaim this. To establish this, you will need to tell your adviser whether any payments have been made towards this debt in the last six years? And, finally, have you acknowledged the debt in any way during the last six years to your employers?
This problem is similar to one I saw a while back, where someone received an unexpected payment form their previous employer. Not returning that money might have been a criminal offence. I think that in your case it is highly unlikely but, in case it helps anyone, the link is here:
http://ask.cleardebt.co.uk/cleardebt/...
Please, get some specific advice as quickly as you can. One of our licensed insolvency practitioners would be happy to help but, in order to do so, would need to know the following:
• What were the exact time scales on when this debt arose?
• When were you first and last notified of this debt?
• What were the circumstances surrounding this, how has it risen to such a large amount?
• Has this debt gone through to a County Court Judgment (CCJ)?
Thank you again for your enquiry; I will be more than happy to provide you with further advice if you reply either publicly or privately.
Kind Regards
Dave Goddard, Cert DR
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3Hello Liz.
Thank you for your enquiry, this is certainly a very delicate matter and I can appreciate the shock you must have experienced on receiving this demand and the stress this must be causing you.
What follows should be considered general advice only and is as much for the benefit of other readers who may have a similar problem (I can only hope they are few and far between). You must get your own independent advice and I would suggest contacting either a solicitor with employment law experience or going to see Citizens Advice without delay.
Having said that, the situation may not be as grave as it seems: Employers can legally pursue the person for the overpayment of wages. However, the employer has to prove that there was a genuine mistake and that the employee was aware of the overpayment and there is a provision in your contract of employment that gives them the right to reclaim an overpayment. If there was no provision in the contract then the employer may have significant difficulties in enforcing payment if the person ( you in this case) refuses to co-operate. The employer might then take the matter to court as a civil claim.
I need to ask you not a particularly pleasant question - but do you feel you may have been responsible in any way? You will need to be absolutely up-front with your advisor about this right from the outset, if you are to get accurate, helpful advice.
Here are some useful weblinks that explain the situation in more detail:
http://www.payroll-help.com/faq/deduc...
http://www.payroll-services-centre.co...
http://www.lemon-co.co.uk/article_ove...
If you decided the overpayment was correct and that you need to repay, then there is no obligation to repay in one lump sum. However, if the overpayment was correct then it would entirely change your debt situation and you should contact your debt management company immediately and ask to be re-advised on the basis of this new information and change in circumstances. It is highly likely that you should seriously consider alternatives to any debt management programme.
There is also a possibility that this debt, if it was all incurred more than six years ago, could be statute-barred: which means your former employer could not reclaim this. To establish this, you will need to tell your adviser whether any payments have been made towards this debt in the last six years? And, finally, have you acknowledged the debt in any way during the last six years to your employers?
This problem is similar to one I saw a while back, where someone received an unexpected payment form their previous employer. Not returning that money might have been a criminal offence. I think that in your case it is highly unlikely but, in case it helps anyone, the link is here:
http://ask.cleardebt.co.uk/cleardebt/...
Please, get some specific advice as quickly as you can. One of our licensed insolvency practitioners would be happy to help but, in order to do so, would need to know the following:
• What were the exact time scales on when this debt arose?
• When were you first and last notified of this debt?
• What were the circumstances surrounding this, how has it risen to such a large amount?
• Has this debt gone through to a County Court Judgment (CCJ)?
Thank you again for your enquiry; I will be more than happy to provide you with further advice if you reply either publicly or privately.
Kind Regards
Dave Goddard, Cert DRComment -
