HUGE council tax arrears - options/advice, please help URGENT!

Superly_Vince

Hi,

I've been flat sharing in my current flat for a few years with my current flatmate. We're both named as tenants on our short assured tenancy agreement.

In the last few days it's come to light that she's failed to make council tax payments and the amount equates to £4500. Both our names are on the council tax agreement but the money comes out of her account. We both live in Scotland.

I have to stress that all other bills are in my name and they are fully up date. We decided to take equal responsibility with regards to handling bills. She pays council tax and I pay the other utilities (electric, Virgin Media). We also pay rent seperately, to our landlord, I've never missed a rent payment and as far as I know she's paid her rent but I'm looking to find this out by calling our agent tomorrow.

As you can appreciate I'm absolutely LIVID at her irresponsibility and the fact that she's lied to me all this time. I've lost sleep and I'm sick with worry as I'm scared as to what the repucutions will be. I trusted her to make payments and I've been responsible enough to maintain my share of the responsibility. We've spent the whole weekend arguing and now she's staying at her friends house for the next few days.

I want this sorted out immediately and I want to know what the consequences are for owing such a substantial amount. I have certain career asperations which I'm looking to persue in the next few months and I really don't want to be held accountable for her mishandling of payments.

With regards to to settling this amount with the Council, what would be the best course of action in paying this back? Id really like to know what's going to happen for my own peace of mind.

Can anyone help?

welshmoneylover

Superly_Vince wrote: »

Hi,

Both our names are on the council tax agreement but the money comes out of her account.

So she has been making some payments then?

dreamdreamer

Do the council still have the account (I'd be surprised after several years) or has it been passed to a Debt Collection Agency/Courts? You need to know this to
know who to set up a repayment plan with, you can find out from the council. How long has it been unpaid? Unfortunately you are jointly liable for the repayment. Your friend has royally stitched you up. I think the first step would be to speak to a debt charity for advice.

I'd also suggest checking your credit report immediately - if she's lied about paying it for years she may also have kept any "escalation" of this non-payment from you, eg. summary warrants, CCJ's (dont know if this applies to Scotland?). How exactly did it come to light?

I'm sure an expert on Scottish Council Tax Law will be along soon, there's an expert on pretty much everything here. Try not to panic too much, at least you've found about it and can start to undo the damage.

Superly_Vince

welshmoneylover wrote: »

So she has been making some payments then?

I went to the Council to advise of my unemployment status (been redundant since July but I've had temp work since then) and to find out what benefit options I have. When they asked my address they said there was a problem. When they returned back to me the advisor said no payments had been made since 2008 and this could affect my benefits claim.

Turns out the council have sent notices for payments etc!

GeorgeUK

Was the agreement that you pay utilities and she pay the council tax put in writing?

I am very surprised that if payments have not been made since 2008 that bailiffs have not yet been involved.
What did she say about it?

Could there have been another account set up for the coucil tax in 2008 that she has been paying to and they've just looked at the old record?

Superly_Vince

dreamdreamer wrote: »

Do the council still have the account (I'd be surprised after several years) or has it been passed to a Debt Collection Agency/Courts? You need to know this to know who to set up a repayment plan with, you can find out from the council. How long has it been unpaid? Unfortunately you are jointly liable for the repayment. Your friend has royally stitched you up.

I'd suggest checking your credit report immediately - if she's lied about paying it for years she may also have kept any "escalation" of this non-payment from you, eg. summary warrants, CCJ's (dont know if this applies to Scotland?). How exactly did it come to light?

I certainly WILL check my credit report! Because I can't afford to have bad credit. I'm looking to join the police in the next few months when recruitment is running agian.

It came to light because I went to visit the Council as I'm currently out of work and I wanted to know what my options were as to paying council tax whilst unemployed. I was made redundant in July but I've had steady temp work since then up until mid December.

Superly_Vince

GeorgeUK wrote: »

Was the agreement that you pay utilities and she pay the council tax put in writing?

I am very surprised that if payments have not been made since 2008 that bailiffs have not yet been involved.
What did she say about it?

No it wasn't in writing unfortunately we verbally agreed to do this when we first moved in and that was that - We thought it would work out that way. All the other bills are paid online and are debited from my current account at the start of the month.

I've seen Demand Notices that come in at the start of each year but no (final) notices with regards to non-payments. And I'm unaware of bailiffs coming round. I've been home a fair bit when I've not had temp work and nothing.

With regards to what she has to say, turns out she's gotten herself in a right mess, with this, credit card payments etc and she's been avoiding it for so long. I really don't know how much longer this would have went on had I not gone to the council for advice on council tax benefits.

I hope someone can tell me what's going to happen as I'm so worried. It's a huge amount but as far as I'm concerned I've kept up my end of the bargin. This is the last thing I need as I'm trying to find a full time job and it's proving stressful enough.

CIS

Was the agreement that you pay utilities and she pay the council tax put in writing?

I am very surprised that if payments have not been made since 2008 that bailiffs have not yet been involved.
What did she say about it?

Could there have been another account set up for the coucil tax in 2008 that she has been paying to and they've just looked at the old record?

Any agreement the OP had with his flat mate does not affect their joint liability.

Scotland doesn't use bailiffs for council tax collection. I'm not an expert of scottish council tax collection (it does vary slightly from england where I work) but I dont think it goes on your credit record (certainly doesn't in england) however the scottish courts can place an arrestment on your bank accounts.

It would be strange to get arrears of £4K plus without action already having been taken. There would have been numberous bills, reminders,summonses sent over the last few years - if you haven't seen them then it sounds like there has been a conscious effort to hide them.

Superly_Vince

CIS wrote: »

Any agreement the OP had with his flat mate does not affect their joint liability.

Scotland doesn't use bailiffs for council tax collection. I'm not an expert of scottish council tax collection (it does vary slightly from england where I work) but I dont think it goes on your credit record (certainly doesn't in england) however the scottish courts can place an arrestment on your bank accounts.

It would be strange to get arrears of £4K plus without action already having been taken. There would have been numberous bills, reminders,summonses sent over the last few years - if you haven't seen them then it sounds like there has been a conscious effort to hide them.

Can they place an arrestment on my account? I'm literally living on my last month of earnings and desperately trying to find a job.

GeorgeUK

From reading this http://www.adviceguide.org.uk/scotland/life/tax_scotland/council_tax.htm#Arrears

It would appear that the best way to move forward with this is to write to the Council and put in appeal as to whether you should be liable. I would also request a note of what has happened on the account since 2008 and ask what your options are.
Not sure what advice CAB might offer, but worth getting in touch with them too.

While £4,500 is alot of money to try to pay back, can you assist your flatmate with her finances or get her to come to the forum to see if we can help? It doesn't sound like she has much money spare but restructuring the finances may allow her to start paying this off and the council have seemingly been keeping quiet without threatening court action or anything for some time.

Edit - here's some more info. http://www.nationaldebtline.co.uk/scotland/factsheet.php?page=03_recovery_of_council_tax
It seems that the arrestment of earnings is based on income, and as you have no income they would not be able to deduct anything from you. If you earned £250pw, they could take about £32

Superly_Vince

GeorgeUK wrote: »

From reading this http://www.adviceguide.org.uk/scotland/life/tax_scotland/council_tax.htm#Arrears

It would appear that the best way to move forward with this is to write to the Council and put in appeal as to whether you should be liable. I would also request a note of what has happened on the account since 2008 and ask what your options are.
Not sure what advice CAB might offer, but worth getting in touch with them too.

While £4,500 is alot of money to try to pay back, can you assist your flatmate with her finances or get her to come to the forum to see if we can help? It doesn't sound like she has much money spare but restructuring the finances may allow her to start paying this off and the council have seemingly been keeping quiet without threatening court action or anything for some time.

I think I'll do that tonight. I'll write a letter to the council outlining how this came to light and how I had no knowledge this going on. I'll clearly state that we had a verbal agreement as to how bills were paid since we both moved in to our flat.

I'll visit the CAB tomorrow and call a debt management line to get some more advice as to where I stand and find out what will happen to my flatmate. Since I don't trust her at all, I think I'll seek out information as to what will happpen and how repayments will be paid for my own sanity, obviously I'll tell her that I sought advice.

When she returns we'll definitely have a sit down and chat about this as it's alarming to me. I certainly don't want to be associated with her mismanagement of paying CT but if my name is linked to this I guess I don't have a choice for the time being. I'll have to ask her about notices and anything else that comes with it, I need to see everything.... providing she still has this

Having had a look through Google, she won't be arrested (nor will I!) but I can't find out how she will set up a repayment plan? Since this has gone on for so long and taking in to account how much money is owed will repayments be made directly to the council or through a debt collectors? will this go to court?