Effect of bankruptcy on family assistance overpayments 107-04080100
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This document outlines what to do when a customer with an outstanding family assistance overpayment becomes bankrupt.
When a customer becomes bankrupt
This can affect the recovery of these overpayments:
- Family Tax Benefit (FTB)
- Child Care Subsidy (CCS)
CCS providers may also contact to advise on bankruptcy.
Bankruptcy does not eliminate all overpayments. Some cease to be payable during the bankruptcy.
The overpayment is included in the bankruptcy if the liability occurs before the bankruptcy period. For reconciliation overpayments, liability arises when the customer is reconciled.
Family assistance overpayments are not split like social security debts into before and after bankruptcy periods.
Escalation
If a case is unusual or not covered in Operational Blueprint, discuss with the APS5 Bankruptcy Officer. The APS5 will refer to the relevant Level 2 Service Desk, policy team and/or Legal Services for guidance.
The References page contains links to Accountable Authority instructions (AAIs).
The Resources page contains links to Equifax IQ Connect and the Level 2 Policy Helpdesk enquiry form.
Related links
Deciding whether a debt was due to fraud for a bankrupt customer
What to do when a customer is bankrupt
Managing recovery and non recovery of Centrelink debts
Temporary write off of Centrelink debts
Permanent write off of Centrelink debts