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Insolvency

18 May 2007
Issue: 7273 / Categories: Case law , Law digest
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R (Balding) v Secretary of State for Work and Pensions [2007] EWHC 759 (Admin), [2007] All ER (D) 27 (Apr)

Liability to repay overpaid social security benefit occurring prior to a bankruptcy is a bankruptcy debt under s 382 of the Insolvency Act 1986 (IA 1986). As s 281 IA 1986 releases a bankrupt from “all bankruptcy debts”, it follows that discharge from bankruptcy releases him from  liability for recovery of the overpaid benefit.

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