Tax Credits Repayments

[puddicat]

Have had a visit from there debt management company when i was out, saying that i have to contact them about repayments, saying that i could be declared bankrupt if i dont,how much debt do you have to accrue to be declared bankrupt, and also whats the minimum per month i can repay at, as i have other debts to pay?and if there is any timescale on repayments, i live in Scotland so maybe the law is slightly different in these cases, but any help would be appreciated, would like some advise before i have to ring them thanks

[CheekyChops]

In England someone can apply to have you made bankrupt if you owe them over �750, I think it's �1500 in Scotland.

As for the minimum per month you can repay at, do you mean if they do make you bankrupt? If so, you will be appointed a trustee who will want details of all your income / assets / debts etc.

There is info on bankrupty in Scotland here: http://www.aib.gov.uk/Helpline/Q7/q7.html

[puddicat]

Thanks Cheeky, i meant what i could pay back per month on what i owe, i dont want to go into this blindly, if they say i must accept what they want me to repay per month, what is the minimum i could pay and will there be a time limit on it, i know the Government have enormous power, but i must have somesay in all of this, i owe just over �2000 so dont owe enough to decare myself bankrupt!many thanks for a reply

[themas]

It seems as if you may have been ignoring their letters - they wouldn't normally send someone round otherwise. You need to negotiate with them. They should accept payment over 12 months without much difficulty. If you can't afford that then you will have to prepare a detailed income & expenditure statement for them, showing how much you can pay. They will then decide whether to accept it. They may not accept that you should go on making full payments to other creditors (if that is what you are doing) if their payments are unreasonably cut back as a result. If so, you may have to negotiate lower payments to other creditors.