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liability orders
MercMan
Posts: 460 Forumite
Does anyone know how liability orders are treated when someone goes BR? The Council have one on me as I missed a Council Tax instalment.
"What does not kill you makes you stronger"
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I think - as long as you declare the debt under your BR - it will be covered by the BR.BR 08/04/09 | ED 02/10/09
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I made it through!Don't ignore a problem. Unlike a bad smell, it won't eventually go away.0 -
Hi MercMan,
If a liability order has been issued your council tax for the whole tax year is included in your BR.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/Chapter31/part3/part2/part%202%20notes.htm#11"][U][COLOR=#0000ff]Note 11[/COLOR][/U][/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.
http://www.insolvency.gov.uk/freedomofinformation/index.htmAccept your past without regret, handle your present with confidence and face your future without fear0 -
Its for 4 months. I've paid one month, so the outstanding 3 months is included in the BR. Have I got that right? I guess the 09/10 Council Tax has to be paid as normal?"What does not kill you makes you stronger"0
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Yes, anything outstanding will go into your BR.
2009/10 will start afresh, with a normal bill, which you will have to pay.Accept your past without regret, handle your present with confidence and face your future without fear0 -
Just be carefull as some councils say that if an orders has been given then they have a right to collect. I have been having issues with bailiffs and a local council and the bailiffs have found a loophole in the system which they say they can collect the debt.0
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Should I have been sent an Liability Order? Didn't get one."What does not kill you makes you stronger"0
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the council can apply for one and they are dealt with in bulk at the courts. Usually once they have the order they pass it on to a baililff who will try to collect on the council behalf.0
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Ah I see. Better ring the Council and make a token offer this month as I'm skint. Got to pay a ruddy speeding fine which has used up CT cash."What does not kill you makes you stronger"0
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If you can keep the council obtaining the order it wil make life easier for you in the future if you do go BR.
Good luck0
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