Bankruptcy Exemptions

jenni75

We were told by the council when we enquired that it was done on a daily basis, and that we would be responsible for the bill following the date of br. As we went a few days before the new finiancial year there was no debt, but the information about council tax being on a daily basis was also in the information re benefits. Some councils may be different so it is worth checking but I would say from our experience don't count on being able to put all of the 09/10 bill in br.

fiveyearplan

Thanks jenni - I do think some councils are different but I went BR last date of the financial year (as you know!) so didn't put it in my BR - well I suppose it would have fell to my husband anyway no matter what time of year it was.

T76

With regards to your gas/electricity - this will be included in your bankruptcy up until the date you claim - give the details to your OR and your utility ptovider will work out your average daily consumption and calculate what your bill would be on the date the declared bankruptcy - anything before this date will be included anything after after this date is written off.

With reagrds to your council tax - when we declared bankupt, we were only allowed to inclued arrears from the previous year in our bankruptcy, anything that you owe from this year - you still owe.

Hope this helps.

T

CIS

council tax is calculated on a daily basis, what is due up to date of br, will be included. You will need to arrange with the council a payment plan for the balance of the financial year.

It depends whether the council tax has become due in full - has a Reminder not been paid within 7 days, a Summons or final Notice issue or a Liability Order granted ?

If so then the balance should be included in the bankruptcy and not apportioned .

Council's have been apportioning the balance but it has been confirmed quite recently that if action has led to the full sum being due, as above, the full amount is included in the bankruptcy as a debt and the council should not apportion it in these cases.

From a document regarding a recent case in which the issue was discussed.

(Mohammed) v Southwark LBC (QBD) 2009
Southwark obtained a liability order against

The council had apportioned the council tax
(CT) account up to the date of the bankruptcy
order and proved that sum in the bankruptcy,
thus seeking to collect the balance from Mr
Mohammed.
Miss Andrews QC held that,
at the date of the bankruptcy
order, Mr Mohammed was already
liable for the full amount of CT
for that financial year by reason of
non-payment, the issue of a reminder
notice under regulation 23 to Council
Tax (Administration and Enforcement)
Regulations 1992 SI (1992/613) and the
failure to pay the arrears within seven days
thereafter. While liability was ultimately
calculated on a daily basis, liability to pay
was based on the year to 31 March and
liability to pay was in advance by instalments.

Re Nolton Business
Centres Ltd (Eliades v The Common
Council of the City of London) (Ch.D) 1996,
Re Toshoku Finance (UK) Plc (HL) 2002,
Trident Fashions plc; Exeter City Council v
Bairstow and others (ChD) 2007 and now
R (Mohammed) v Southwark LBC (QBD)
2009 are all consistent in looking at current
indebtedness, when amounts become due
and emphasising that no apportionment on
the date of entering insolvency.