Almost taking the BR plunge........

Maizy

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Ineedaname

Don't forget to apply for Council Tax rebate on your old property once you've moved out though or you'll be liable for that for an empty property.

debtinfo

NeverAgain wrote: »

...Ive read council tax CAN be included in a BR yet others say you must pay it or you could end up in jail...

Good question.

It seems council tax from previous financial years can be included in bankruptcy, but you must pay the current financial year, ie, from April.

But, council tax from previous residences is allowable, so if on the day you are in court, you are living in your next house, then council tax on your present one can be included in your bankruptcy.

That's one interpretation, anyway.

In your circumstances I would be inclined not to pay it.

There must be plenty of people who pitch up at court/do their OR interview showing arrears from a previous property, so I'm sure you will be put right at one stage or the other.

Nor sure how reliable this site is:

http://bankruptcy.org.uk/archives/item/6361-can-i-include-council-tax-in-my-bankruptcy

I would not trust that at all.

Council tax accrues normally on a daily basis and therefore arrears for this year can be included in bankruptcy

debtinfo

BTW Im pretty sure that site used to be owned by a company that was closed down by the secretary of state in th public interest. I presume someone else owns it now but still

NeverAgain_2

...I presume someone else owns it now but still...

Funny you should say that, I have a vague recollection of something similar, which is why I prefaced the link with a warning.

The point about bankrupts not being able to include council tax in the current financial year is mentioned on other sites, but I can't be certain of their reliability either.

debtinfo

Best not to quote sites that offer a paid for bankruptcy assist programme, Here is a Quote from the Insolvency service technical manual which is something of an authority on the subject

40.101 Council Tax
Each District Borough Council levies and collects a tax, called a council tax which is payable in respect of dwellings in its area. The occupiers of the dwellings have joint and several liability for council tax.
Council tax is charged on a yearly basis from 1 April each year URL="http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch37-48/chapter40/part6/Notes/Notes.htm#3"][COLOR=#0066cc]Note 3[/COLOR][/URL but the liability to pay council tax is determined on a daily basis URL="http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch37-48/chapter40/part6/Notes/Notes.htm#4"][COLOR=#0066cc]Note 4[/COLOR][/URL. The billing authority is required to make a demand for payment of the council tax separate to the notification of the amount of council tax and the tax becomes due when that demand is made but most council tax payers agree a statutory monthly payment scheme for payment of council tax URL="http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch37-48/chapter40/part6/Notes/Notes.htm#5"][COLOR=#0066cc]Note 5[/COLOR][/URL.
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/Ch37-48/chapter40/part6/Notes/Notes.htm#6"][COLOR=#0066cc]Note 6[/COLOR][/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. Where a liability order has been obtained by the council, prior to the bankruptcy order being made the whole debt as notified within the liability order becomes due and it is therefore a provable debt as defined in paragraph 40.12.

Maizy

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Maizy

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thedeans

Maizy - sorry to sound so negative in previous post it wasn't meant to sound like that - What I was trying to get at is life after losing our house is MUCH better :j

We tried and tried to find the money to pay our mortgage and became deeper and deeper in debt - until we weren't living just surviving - looking back I can't believe that we flogged it for so long

If we had given up at the start we wouldn't have the massive Xtra debts that we took on to "consolidate" our spirilling debts - and we wouldn't have suffered on for as long as we did causing un-necessary suffering to our children

As regards to your council tax - pay what you can - most councils only start to action a debt when a "full" payment has been missed - so if you can pay part of it the amount owing will not be a full payment amount - ie your mthly payment is 180 - but you can only pay 80 - you owe £100 - this is lower than the mthly of 180 so usually won't be flagged as a missed payment - try to catch it up quickly - Councils tend to send Mr Bailiff round quite quickly - so I'd suggest contacting them and ask for their advice ASAP - PLUS they also chuck heavy admin/solicitor costs on at first opportunity

Me personally, I have today contacted CCCS - they're sending lots of info out - they confirmed bankruptcy would be an option - they suggested that I also need my credit file - but hitting yet another hurdle - I don't seem to exsist!!! - or rather my debts and me together don't!!! - so yet more paper work, paper work:(

NeverAgain_2

Maizy (and others on here who know more about bankruptcy allowances than I do) would this timetable work?

Move into chosen rented property in June.

Save two months for fees and go bankrupt in September.

Tell OR at interview in October that you are rent paid until December, but you will need rent money thereafter.

OR sets budget accordingly, that is taking any surplus until December, but allowing rent from January.