We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Council tax and water in bankruptcy

debt_doctor
Posts: 4,595 Forumite


Hi all,
Just want to 'tidy up' the legislation re these two issues.
If you are not behind in your current year when you go BR then only the c/tax up until the day you are BR will be included. If you have, in the current year, been issued with either a final bill or a liability order then the whole year including future payments MUST go in to your BR. (Councils do not have a choice.)
With water, water is billed in advance, therefore (unless you are on a meter) the rest of the year ALWAYS goes in to your BR.
Sorry, but heard so much about this over the months just wanted to clarify.
DD
Just want to 'tidy up' the legislation re these two issues.
If you are not behind in your current year when you go BR then only the c/tax up until the day you are BR will be included. If you have, in the current year, been issued with either a final bill or a liability order then the whole year including future payments MUST go in to your BR. (Councils do not have a choice.)
With water, water is billed in advance, therefore (unless you are on a meter) the rest of the year ALWAYS goes in to your BR.
Sorry, but heard so much about this over the months just wanted to clarify.
DD
Debt 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 ***
Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
0
Comments
-
Thats probably why they put council tax and water bill in joint names instead of just one or the other!
:j :j
0 -
..... and just to complicate things, in c/tax, if you have 'similar hierarchy' you are LIABLE whether your name is on the c/tax bill or not !! This can happen when joint owners or joint tenants are both liable but only one person registered with the council.
My job is such fun !!
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 -
The same for c/tax and water applies to DRO's too.
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 -
Debt Doctor - what happens if during the period you go bankrupt your
unemployed and have council tax benefit but then during bankruptcy go back into self employment...do you pay council tax then?0 -
I have been told if you go BR council tax or CT arrears still stands as a debt and is not included in Bankruptcy?
can anyone clarify please ?
ThanksI would love to be a Travel Agent :j0 -
your council tax arrears are wiped off until the date of your BR order if the council got a liability order befoer your BR order then the whoel bill becoem a provable debt and as such it is included into the BR ....
however the council may argue that you remain liable for council tax from the date of BR order onwards .. and tis depend from council to council . it seem that many on this board, including myself , have more or less issue with them as they seem not to respect their own rule or the law ....
Never the less I found this from the OR technical manual
33.194B – Council Tax (amended November 2008)
Council Tax is a local tax set by local councils to help pay for local services URL="http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter33/part8/Part%208%20notes.htm#12"]Note 12[/URL. There is one council tax bill for each dwelling, whether it is a house, bungalow, flat maisonette, mobile home or houseboat, and whether it is owned or rented. Generally speaking the occupier(s) of the property are the liable person(s) for the payment of the tax with some limited exceptions URL="http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter33/part8/Part%208%20notes.htm#13"]Note 13[/URL .
Council tax is charged on a yearly basis from 1 April each year URL="http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter33/part8/Part%208%20notes.htm#14"]Note 14[/URL but the liability to pay council tax is determined on a daily basis URL="http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter33/part8/Part%208%20notes.htm#15"]Note 15[/URL The billing authority is required to make a demand for payment of the council tax separate to the notification of the amount of council tax and the tax becomes due when that demand is made but most council tax payers agree a statutory monthly payment scheme for payment of council tax URL="http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter33/part8/Part%208%20notes.htm#16"]Note 16[/URL.
Any amount due and unpaid under the instalment agreement prior to the insolvency order is an unsecured debt in the proceedings URL="http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter33/part8/Part%208%20notes.htm#17"]Note 17[/URL. If the bankrupt's council tax is up to date under the instalment agreement at the date of the bankruptcy order, no amount is provable in the bankruptcy as it relates to future occupation of the dwelling. The bankrupt is liable to pay council tax after the date of the bankruptcy order. Where a liability order has been obtained by the council, prior to the bankruptcy order being made, then the whole debt as notified within the liability order becomes due and it is therefore a provable debt as defined in paragraph 40.12.BSC number 1830 -
Thank you so much for info its great help,
Im trying to help my friend who sadly tried taking her own life a few weeks ago due to debt and work pressure and coping with a high mortgage as a single lady.I would love to be a Travel Agent :j0 -
hmmm - so much for me thinking the water company will leave me alone til next year.
had a bill today for £113
I have just rung them to say - err nope the whole lot went in and the customer service woman said only the amount up until i went bankrupt is included..I queried it again and said no thats wrong I went bankrupt on 2nd April and had my bill in march so the whole lot goes in. Im waiting for a call back from someone dealing with my insolvency..
I dont mind paying but cant afford to pay it all at once, just dont understand how they have arrived at the figure they have.0 -
I have a water meter so it wasn't included in my bankruptcy but they were informed by the or about it - they cancelled my direct debit and didn't tell me, it was only months later when I was looking at my bank statements that I realised they hadn't been taking the money, I rang them and was told that they automatically cancel any direct debits for br's - I had changed my direct debit before br for my new cashminder account and thought everything was running smoothly instead I ended up owing the water company 3 months dd's. So watch out if your on a monthly bill!0
-
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.5K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.7K Mortgages, Homes & Bills
- 177.5K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards