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Bankruptcy hearing do I have to go bankrupt?
jimm24
Posts: 144 Forumite
I am scheduled for a Bankruptcy hearing at the start of July,due to unpaid council tax.
I am not in a position to pay the total amount(£3000 plus fees of £1000)but will be able to pay it back over the next year or so,the figure also includes the coming years council tax,so the back log is £2000,if it ends up going to court will I be forced into bankruptcy or will there be other options,the last thing I want to do is go bankrupt???
I am not in a position to pay the total amount(£3000 plus fees of £1000)but will be able to pay it back over the next year or so,the figure also includes the coming years council tax,so the back log is £2000,if it ends up going to court will I be forced into bankruptcy or will there be other options,the last thing I want to do is go bankrupt???
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Comments
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Have you spoken to the council tax office and made an offer to set up a repayment schedule?Accept your past without regret, handle your present with confidence and face your future without fear0
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They want it paid back within 3 months,which is never going to happen?0
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Hi,
I dont know your situation re house equity etc but you need some legal advice asap from either CAB, lawcentre or solicitor if you are legally aidable.
There are options but you need someone to represent you.
DDDebt Doctor, Debt caseworker, Citizens' Advice Bureau .
Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***0 -
Can you send me a private message to let me know which local authority this is.
Sadly, our office have had many enquiries from the public who have been petitioned for bankruptcy by their local council and I am afraid to say that many cases do result in bankruptcy. However just yesterday one client was succcessful in persuading the Judge in court that bankruptcy was entirely incorrect.
As a company I am fiercely against this method of enforcement which I believe does NOT bring additional revenue into the local authority. I say this because if the local authority had enforced the debt in the traditional way by passing the debt to bailiffs, the cost to the council would be nil. However with B/R the legal fees ( which in most cases cannot be recovered ) are approx £1,500. As the for council tax itself , very rarely will this be paid if bankruptcy is granted.
Have bailiffs been instructed in you case or did the LA go straight to this method of enforcement?
Are you in receipt of any benefits?
Do you own your own home?0 -
I know LB Lewisham and LB Croydon both make a lot of people bankrupt, only after they have done a Land Reg search and are confident there are significant assets. They use other methods is the debtor has no assets (eg council are satisified the debtor is in rented property and on benefits).0
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just one question...
if a council BR's you for £3000 council tax (that must be 3 years worth?) and it costs them £1500 to do it, dont they ever think if you had any money or assets you would have paid up anyway, and avoid (them) losing £4500?0 -
The people who are made bankrupt in the circumstances aI described are often asset rich (ie balance sheet solvent) but cash poor (unable to pay their debts when they fall due). If the debtor does allow it to go to BO hearing stage a BO being made is possible. Once bankrupt they will either have to pay all of their unscecured debts and the costs in full to get an annullment, or get an IVA approved as basis for an annulment, or stay bankrupt and the trustee will realise the beneficial interest in the property.
This is often very sad personal cases, retired people often ill who cannot deal with their affairs for example, whose only asset is the roof over their heads living on state pension. Or someone mentally ill or unable to read/write so unable to deal with the paperwork. It makes me sick personally that local authorities are using Bankruptcy legislation in this way. But it is happening.maxmycardagain wrote: »just one question...
if a council BR's you for £3000 council tax (that must be 3 years worth?) and it costs them £1500 to do it, dont they ever think if you had any money or assets you would have paid up anyway, and avoid (them) losing £4500?0 -
yes, i would expect a council to do the ground work
assets = BR
no assets = CCJ
then again, £3K arrears, 3 years, someone hasnt been paying have they!0
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