Council Tax declared on bankruptcy but they are still after me!

Emby_2

Hi all,

I sent a letter to the council re my CT saying that I had been declared bankrupt and had included the final outstanding £250 which brings the council tax up to 31st March. I received a letter back with a new outstanding amount of £296!

I phoned them and said I had been made bankrupt and had sent proof + that I had included the outstanding £250 in the bankruptcy. They responded by saying:

'We have cleared everything that was outstanding up until the day of your bankruptcy but anything from that date is still outstanding'

1. There wasn't anything outstanding up until that date as I had paid all of the installments

2. Considering I had declared the final 2 installments on my bankruptcy are they right?

3. If they are right what happens? I have no way of paying them. Would it result in a new court order being made against me?!

Thanks all!

Emby

tigerfeet2006

Emby wrote: »

Hi all,

I sent a letter to the council re my CT saying that I had been declared bankrupt and had included the final outstanding £250 which brings the council tax up to 31st March. I received a letter back with a new outstanding amount of £296!

I phoned them and said I had been made bankrupt and had sent proof + that I had included the outstanding £250 in the bankruptcy. They responded by saying:

'We have cleared everything that was outstanding up until the day of your bankruptcy but anything from that date is still outstanding'

1. There wasn't anything outstanding up until that date as I had paid all of the installments If there was nothing outstanding then there was nothing to go into your BR as there is no debt.

2. Considering I had declared the final 2 installments on my bankruptcy are they right? Anything up to the date of your BR should be included, anything after is up to you to pay. Some ouncils are nice and will include the whole year in your BR some don't.

3. If they are right what happens? I have no way of paying them. Would it result in a new court order being made against me?! Try to come up with a reduced payment plan with them for the remaining 2 months and then ask to have the remainder spread across the next CT year. Due to a bank problem my CT DD didn't get paid for a couple of months and they are letting me pay an extra £25 a month over the next 2 months and the rest is going on to the next CT year and over 12 months.

Thanks all!

Emby

HTH. sorry I couldn't be more positive. I am sure someone will correct me if I am wrong.

debt_doctor

Hi,

Council tax is calculated on a daily basis. Your liability for this current year would be the full amount of the year (according to your banding) divided by 365.
This fiquire is then multiplied by the amount of days from 6th April 08 to the date of your BR. Subtract all the payments you have made from this figuire and you will be left with any outstanding balance.

Its the fact that instalments are over 10 months, not 12 that causes the confusion.

If you do have outstanding liability then you should be able to spread it over next years bill, but you must contact them.

Best

DD

Sunny_Bear

Yep, you will have to pay the daily rate from the day of your BR until 31st March, this can't be included in your BR.

Emby_2

Thanks for the info! Ah well, I will have to find the money.

Emby