Council tax and bankruptcy.

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74leeboy
74leeboy Posts: 42 Forumite
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in Bankruptcy & living with it
Hi. I was made bankrupt at the beginning of august and I'm the only one working in my household. My wife isn't working at the moment. My question is do I have to pay the full council tax (. £164/ mth) or is it written off for the rest of the tax year. If it is written off do I have to contact the council tax offfices. Thanks and I hope this makes sense.

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  • Rags2riches
    Rags2riches Posts: 42 Forumite
    edited 11 September 2017 at 7:09PM
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    legislation.gov.uk/uksi/1992/613/contents/made

    Insolvency 49

    (1) Where a liability order has been made and the debtor against whom it was made is an individual, the amount due shall be deemed to be a debt for the purposes of section 267 of the Insolvency Act 1986(1) (grounds of creditor’s petition).
    (2) Where a liability order has been made and the debtor against whom it was made is a company, the amount due shall be deemed to be a debt for the purposes of section 122(1)(f) (winding up of companies by the court) or, as the case may be, section 221(5)(b) (winding up of unregistered companies) of that Act.
    (3) For the purposes of this regulation the amount due is an amount equal to any outstanding sum which is or forms part of the amount in respect of which the liability order was made.

    Council tax is a joint a several liability I believe they could pursue your wife.
  • debt_doctor
    debt_doctor Posts: 4,595 Forumite
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    Rags2riches wrote: »

    Council tax is a joint a several liability I believe they could pursue your wife.
    They certainly can. So, as you say, the bankrupts liability ill be written off for this financial year but 100% liability will remain for the wife.
    The council tax still needs to feature in the SOA.
    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 ***
  • Singlemumm
    Singlemumm Posts: 155 Forumite
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    Hi there,


    I cannot understand how this works.
    I am bankrupt.Coucil tax I paying in equal parts with other tenant,we are sharing the house.
    CT is paying by Direct debit from other tenant account and my part I am paying to him.
    OR wants that I will pay to him and whats ten?
    for whole amount will be responsible other tenant?it does not make sense,because I have to pay to him.so in this case I will pay twice??
  • SW11
    SW11 Posts: 4 Newbie
    edited 1 February 2018 at 11:57AM
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    I was made bankrupt on 3 Oct 16 and was paying Council Tax by instalment DD up to then. When my bank account closed the payments stopped. My Council obtained a Court Order from the Magistrates Court in Feb 17 which I believe is unenforceable. In August 2017 the Council told me that they had cancelled the balance of my 2016/2017 liability due to my BR. They then issued a bill under a new account number for 2017/2018 and obtained a Court Order in October 2017 despite my telling them I was still BR. I was discharged on 1 Nov. 17. The Bailiffs turned up to enforce the order last week. When I had a close look, I discovered that I had not been granted single occupancy discount for 5 years. My questions are (1) Am I liable for the full year 2017/2018 or just from 1 Nov 17 and (2) Should they credit my accounts for the arrears of single occupancy discount for the 5 years. I am sure they had evidence I was a single occupier from the Voters Roll and other correspondence. Many thanks in anticipation.
  • KJ2886
    KJ2886 Posts: 67 Forumite
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    You are liable for the full 2017/2018 council tax bill, its only the current council tax bill of 2016/2017 that would have been included in your bankruptcy and normal council tax amounts would have been payable from the April 2017
    I think the issue of the single occupancy discount is different, make sure its applied from now on and could ask about it being backdated but how/if the bankruptcy effects this I dont know!
  • SW11
    SW11 Posts: 4 Newbie
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    Thank you for earlier reply. One other question. Can the Council issue a Summons for 2017/2018 in Aug 17 for hearing at the Magistrates Court when I am an undischarged BR. I thought it was not legal for them to do so until after I was discharged.
  • CIS
    CIS Posts: 12,260 Forumite
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    SW11 wrote: »
    Thank you for earlier reply. One other question. Can the Council issue a Summons for 2017/2018 in Aug 17 for hearing at the Magistrates Court when I am an undischarged BR. I thought it was not legal for them to do so until after I was discharged.

    There's nothing to stop them from continuing action as normal against anyone debt not covered by a bankruptcy.

    The bankruptcy itself no effect on claiming a discount / exemption, even if retrospective, however as the debt will have most likely been written off they'll just offset any positive adjustment against the write off.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
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