Housing Benefit & proceeds from sale

Hi all,

I started renting in October and was initially awarded HB which was what I was expecting. I have always been totally honest and open with them that I was selling my house which was due to complete in November but I would be using any proceeds to clear my debts. At the time they told me that would be fine once completed the funds would be disregarded until I got the debts cleared and obviously I would be showing prove of this.

Got a letter asking me to forward them details of the proceeds and bank statements all of which I provided as well as all my up to date debt statements at the start of January. I then received a letter to say my award was suspended while they re-assess.

Today I received a letter to say they had over paid me ????? I am confused does anyone know what the procedure is can I get this money disregarded while I make the offers of settlement to my creditors????

Makes me feel so sick. We had to sell our house due to my husbands ill health so we could clear the mortgage and our debts. We are now renting and can't afford it with out the HB.

TIA for any help.