What will the judge say in court, if I have clearly try to negotiate the debt

juggler7

Hi,

Just want some advice from someone who has been summoned to court over debt.

Now, I hate to admit it, but I am on JSA. No I am not a scumbag I hold an honours degree in engineering and had a well paid job for many years.

Basically after rent, essential bills such as telefone, heating and electricity, I am left with £40 a month.

So I tried to negotiate with my debtor, the Luton Council, that I can pay £40 a month..

Now my guess is they will still take me to court, so what can the judge do? throw me in jail? order me to produce money that simply isn't there?

I want advise from someone who has been in a similar situation.

Thanks

Jeremy

Tixy

Is this for your council tax? How much do you owe? For what year?
If you paid £40 a month how long would it take to pay off?

Are you claiming council tax benefit for the current year (since you became unemployed)?

Usually your council will get a liability order from the court without you needing to attend the court. What the judge will do is grant the liability order.

juggler7

yes council tax, although I am getting it backdated, they didnt pay me from the correct date...

but yes £220 in a week they demand..what is a liability order?

juggler7

p.s. wouldnt it make sense to deduct this automatically? since they are the ones that pay housing and council benefit? makes sense to me...why pay someone money then demand your cut back?

bureaucratic stupidity I have come to expect from this country

CIS

Now my guess is they will still take me to court, so what can the judge do? throw me in jail? order me to produce money that simply isn't there?

I want advise from someone who has been in a similar situation.

The magistrate cannot rule on payment options or anything along those lines (unless you can prove you have already settled in full) - he is there to grant the order unless you can prove you have been billed incorrectly or are not the person liable for the council tax.

The magistrate will grant a liability order - this is the legal notice that gives the council the powers to recover any monies due - they have a range of powers from attachment of earnings/benefit, bailiff action, bankruptcy and ultimately taking a person to court for committal to prison.

They will obtain the liability order in order that they can recover the debt if you don't pay but they also need it before they could take money straight from your JSA (£3.30 per week).

In cases like this the authority I work for & the vast majority of other councils will obtain the Liability Order and then set-up a deduction from your JSA at the £3.30 per week rate.

DVardysShadow

CIS wrote: »

...
They will obtain the liability order in order that they can recover the debt if you don't pay but they also need it before they could take money straight from your JSA (£3.30 per week).

In cases like this the authority I work for & the vast majority of other councils will obtain the Liability Order and then set-up a deduction from your JSA at the £3.30 per week rate.

This suggests that with an offer for £40/month on the table, the council would actually be wasting taxpayers money taking this to court to get an order worth about £10/month.

Juggler, have you ever let the council down on any agreement in the past? If not, I suggest that you send them a cheque for £40, outlining your offer in writing and pointing out that if they get a liability order, you will be happy for it to come out of your JSA at £3.30 per week.

CIS

As this thread has now been linked to from a new thread.

This suggests that with an offer for £40/month on the table, the council would actually be wasting taxpayers money taking this to court to get an order worth about £10/month.

They dont have to take money direct from the JSA (now £3.40 p/w) but its only an option after the Liability Order has been granted. By gaining the order they are actually working in the tax payers interests as its the only way they can ensure the money is recovered.

On many occasions people have made agreement after agreement and defaulted on them therefore its easier to get the attachment to force payment rather than to waste more money on setting up arrangements that are repeatedly defaulted on.

The final decision rests with the council.