Please help, massive council tax arrears! SCOTLAND

pauletruth

how on earth have you got away without paying for 10 years. if we miss a payment by a few days we are threatened with everything under the sun. it must be a big house to be worth 1300 a year.
has jail been mentioned yet.
why would the council want to let you off the hook by making you bankrupt.
are you paying this years tax.
Council Tax arrears


You usually pay your Council Tax bill in instalments over 10 months. If you're having difficulty making a payment, contact your local council immediately and explain the situation - the longer you ignore a debt problem, the worse the situation becomes.
What to do if you can't make a Council Tax payment

If you can't make a Council Tax payment, make a list of everyone you owe money to (your creditors) and prioritise your debts so that you know which debts you need to pay off first. Next draw up a personal budget so you can work out what you can afford to pay each creditor.

• Find out more about dealing with debt problems

• Find out which debts to pay off first

You can then contact your local council and offer to make regular payments you can afford. When you reach an agreement it's important to honour it, so only agree to payments you can manage. You should also find out whether you qualify for help, such as Council Tax Benefit.

• Find out about Council Tax Benefit

What if you still don't pay?

If you are unable to come to a payment arrangement with the council or if you make arrangements to pay but don’t, your council can ask the Magistrates’ Court for a ‘Liability Order’ (a demand for you to pay the full amount you owe, plus costs).
You have the right to attend the court and offer evidence as to why you are not liable for the debt. Even if you decide not to attend court, you should speak to the council or, if you prefer, your Local Citizens Advice Bureau. The council will try to come to a reasonable arrangement with you for payment but they cannot do that unless you contact them.

<H3>The consequences of ignoring a Liability Order

If the court makes a Liability Order against you, your council can take enforcement action against you in order to recover the debt. This will usually mean either deductions from wages and benefits or the use of bailiffs, although bankruptcy and charging orders are other options.

Deductions from wages

Your council can order your employer to deduct a regular amount from your wages toward your unpaid Council Tax. If this causes you financial hardship, you can ask your council if they're willing to accept smaller payments.

Deduction from benefits
Your council may be able to apply for deductions if you are receiving Jobseekers’ Allowance, Income Support or Pension Credit.

Bailiffs

Your council can send bailiffs to your home to seize property to sell. The money raised goes towards paying your debt, plus costs. The billing authority must send a letter two weeks before the bailiff’s first visit stating how much money you owe under the Liability Order.
You can contact the Council and the bailiffs and offer to come to an agreement on payments. It’s important to do this straight away, because if the bailiffs make a visit their costs could be added to your bill.

Court hearing

If your council has tried using bailiffs but your Council Tax still isn’t paid in full, they may apply to the Magistate’s Court for a warrant committing you to prison. The council will only take this step when other efforts have failed.
Before issuing a warrant of commitment the court must hold a means enquiry with you present. A warrant will only be issued if the court is satisfied that the failure to pay is the result of wilful refusal or culpable neglect. The maximum period of imprisonment is three months.
The court may decide to postpone the period of imprisonment on certain conditions, normally relating to payment of the debt over a period of time. The court also has the power to remit all or part of the debt.

</H3>so the final step is jail not being made bankrupt. and to be honest unless you get your act to gether thats were youw will be sent.
get your current council tax in order and then offer on the older debt what you can pay back. if the bailiffs have given up on you then you really are in trouble.

adi_clarke85

pauletruth wrote: »

how on earth have you got away without paying for 10 years. if we miss a payment by a few days we are threatened with everything under the sun. it must be a big house to be worth 1300 a year.
has jail been mentioned yet.
why would the council want to let you off the hook by making you bankrupt.
are you paying this years tax.
Council Tax arrears


You usually pay your Council Tax bill in instalments over 10 months. If you're having difficulty making a payment, contact your local council immediately and explain the situation - the longer you ignore a debt problem, the worse the situation becomes.
What to do if you can't make a Council Tax payment

If you can't make a Council Tax payment, make a list of everyone you owe money to (your creditors) and prioritise your debts so that you know which debts you need to pay off first. Next draw up a personal budget so you can work out what you can afford to pay each creditor.

• Find out more about dealing with debt problems

• Find out which debts to pay off first

You can then contact your local council and offer to make regular payments you can afford. When you reach an agreement it's important to honour it, so only agree to payments you can manage. You should also find out whether you qualify for help, such as Council Tax Benefit.

• Find out about Council Tax Benefit

What if you still don't pay?

If you are unable to come to a payment arrangement with the council or if you make arrangements to pay but don’t, your council can ask the Magistrates’ Court for a ‘Liability Order’ (a demand for you to pay the full amount you owe, plus costs).
You have the right to attend the court and offer evidence as to why you are not liable for the debt. Even if you decide not to attend court, you should speak to the council or, if you prefer, your Local Citizens Advice Bureau. The council will try to come to a reasonable arrangement with you for payment but they cannot do that unless you contact them.


</H3>so the final step is jail not being made bankrupt. and to be honest unless you get your act to gether thats were youw will be sent.
get your current council tax in order and then offer on the older debt what you can pay back. if the bailiffs have given up on you then you really are in trouble.

End of the line is prison, bankruptcy or charging order... Knowing she owns the properties I think a charging order maybe in question rather than bankruptcy - council tax is a low priority in bankruptcy, not sure if this is the same in the Scottish version.

pinklipy

Ok! Calm down pauletruth, i have already stated that I know how bad this is so do not need harsh words that really are of no help at all.
Firstly iv not just not paid for 10 years, the debt kept getting passed on to a sherrif officer company year on year who were more than happy for me to only increase my payment by £1-£5 each time resulting in me paying £111 per monthover these last 10 years, it is only 3 days ago that I suddenly got a letter asking for payment of £13000 as far as i was aware everyone was happy with current arrangement, why would I think any different? Bailiffs are not used in Scotland so I have never ever had a single threat or even a threatening letter.
I hardly think that making me bankrupt is letting me off the hook?
I am here for advice. And no not paying this years council tax either 2011/2012 is included in the debt.
Thanks

HappyMJ

pinklipy wrote: »

Ok! Calm down pauletruth, i have already stated that I know how bad this is so do not need harsh words that really are of no help at all.
Firstly iv not just not paid for 10 years, the debt kept getting passed on to a sherrif officer company year on year who were more than happy for me to only increase my payment by £1-£5 each time resulting in me paying £111 per monthover these last 10 years, it is only 3 days ago that I suddenly got a letter asking for payment of £13000 as far as i was aware everyone was happy with current arrangement, why would I think any different? Bailiffs are not used in Scotland so I have never ever had a single threat or even a threatening letter.
I hardly think that making me bankrupt is letting me off the hook?
I am here for advice. And no not paying this years council tax either 2011/2012 is included in the debt.
Thanks

I would just keep on paying the £111 per month and leave it at that. They can't get more money out of you unless your part time earnings are very high in relation to the average earnings. You will not go to prison that's only for the people who refuse to pay anything. You are paying what you can afford.

It's also unlikely that you will lose your jointly owned home. The other joint owner will be asked to buy your share at a greatly reduced price which you can accept or not.

pinklipy

I would love to be able to continue paying £111 per month and keep up to date with current council tax but the council have reviewed my account and obviously realised my debt is massive so will not allow me to pay £111, they are asking for a proposal of £400-£500 per month plus my current council tax or further action will be taken I.e sequestration/bankruptcy. I have spoke to debt advice who have recommended I put in a letter stating am 7 months pregnant and this is causing major stress and will they give me a grace period untill January when i will put in a realistic proposal as my circumstances will have changed (newborn & 4 year old) so I am hoping they will grant this. Both my property's are jointly owned so again the law in Scotland is different regarding them being able to take my home(s).
Regarding prison, I knew that wasn't likely as iv always paid something and never refused.
Thanks

Cherryjack

pinklipy wrote: »

I would love to be able to continue paying £111 per month and keep up to date with current council tax but the council have reviewed my account and obviously realised my debt is massive so will not allow me to pay £111, they are asking for a proposal of £400-£500 per month plus my current council tax or further action will be taken I.e sequestration/bankruptcy. I have spoke to debt advice who have recommended I put in a letter stating am 7 months pregnant and this is causing major stress and will they give me a grace period untill January when i will put in a realistic proposal as my circumstances will have changed (newborn & 4 year old) so I am hoping they will grant this. Both my property's are jointly owned so again the law in Scotland is different regarding them being able to take my home(s).
Regarding prison, I knew that wasn't likely as iv always paid something and never refused.
Thanks

If i was in your postion i would go down to the council offices.. and make an appointment.. also citizens advice .. get as much support as you can. Do you have credit cards etc?? if you do then you are no longer in a postion to pay them as council tax is a priority bill. You can contact cccs (consumer credit).. they are a debt charity and you can make and appointment with them over the phone for free,... and maybe set up a token payment for any debts you may have in the interim.. all your extra money shoud be going towards this council bill.. and yes swap sky for freeview etc xxx

pinklipy

To pauletruth: it is not a big house at all, I live in an expensive city in Scotland, £1300 is actually a very good rate and totally the norm for where I live. A lot of my family members council tax is in the region of £2500 per year.

RAS

Hi

We really need a few facts before we can say anything.

You have told us there are two houses:

1. jointly inherited with your sister which is rented out but has a mortgage on it? there may be some equity in this house. You inherited this at age 16.

2. Jointly owned with your ex-partner. Mortgaged based on your suggestion that there is no equity in it.

You need to write down for each house

a) For what years were you living in the property?
b) During those year's were any other daults living in the property.#
c) For what years is the Council claiming unpaid Council Tax?
d) with respect to the inherited house, during which years this has been rented out.

Cherryjack

your right i live in a 3bed and i pay the same ..

RAS

pinklipy wrote: »

To pauletruth: it is not a big house at all, I live in an expensive city in Scotland, £1300 is actually a very good rate and totally the norm for where I live. A lot of my family members council tax is in the region of £2500 per year.

I understand that CT in scotland also includes water rates, that are paid separately in England and Wales? Am I correct?