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council tax debt bailiff after br

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Comments

  • Poppa_G
    Poppa_G Posts: 100 Forumite
    bit confused here... in laymans terms is what you're saying : that if a bailiff has a 'walking agreement' he can still proceed to levy against your goods despite you going BR?

    Last year I went through a DRO, included in this was some ctax arrears for which bailiffs had visited twice but not gained entry, (thanks to advice from my local CAB) thus these debts were included and the bailiff company wrote to me saying that the debt had been passed back to the council.

    thanks
  • debt_doctor
    debt_doctor Posts: 4,595 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Poppa_G wrote: »
    bit confused here... in laymans terms is what you're saying : that if a bailiff has a 'walking agreement' he can still proceed to levy against your goods despite you going BR?

    Last year I went through a DRO, included in this was some ctax arrears for which bailiffs had visited twice but not gained entry, (thanks to advice from my local CAB) thus these debts were included and the bailiff company wrote to me saying that the debt had been passed back to the council.

    thanks

    Hi,

    The right to continue to levy (walk in possession or not) is still allowed to continue.
    I am saying that such action is pointless if the bailiffs / council can't keep the proceeds. I am convinced (especially from my tech manual quote above) that indeed they cannot keep the proceeds so I shall continue to advise exactly as I said in the first place.

    I'm glad it all went smooth for you:D
    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
  • debtinfo
    debtinfo Posts: 7,012 Forumite
    9.33 Distress within three months of the WUO or BO (amended October 2008)
    If distress was levied by any person within three months prior to the winding-up order or bankruptcy order (i.e. the goods were seized in that period), then the goods or their proceeds of sale are charged for the benefit of preferential creditors to the extent that any assets comprised in the insolvents estate is insufficient to meet the preferential creditors claims.
    The distraining creditor who is required to surrender goods or the proceeds of sale has a claim as a preferential creditor for the value of the goods surrendered or the proceeds of sale of the goods. The distraining creditor and the preferential creditors will rank equally in respect of any distribution, except against the amount available to pay preferential creditors by virtue of the funds surrendered. The distraining creditor has a subrogated claim once the surrendered funds have been distributed. It should be noted that in this respect the crown departments will retain their preferential status for a subrogated claim, notwithstanding the abolition of the general right to preferential status contained within the provisions of EA2002.

    If they are "required to surrender goods or the proceeds of sale" - does that not mean they cannot keep the proceeds?

    as i said above, yes if there is a preferential creditor then they have to surrender, but they then rank ahead of all other creditors so they do get the proceeds back. In reality, it is very rare to have a preferential creditor so they just get to keep the proceeds

    in laymans terms the only people that trump the distraining creditor is the preferential creditor
    Hi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
    Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.
  • debt_doctor
    debt_doctor Posts: 4,595 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    edited 30 November 2011 at 4:55PM
    So would we agree then that the council cannot keep the funds, they must pass it to the official receivers office as per my original post?

    Secondly, does the case management fee take preference to the prefered creditors?

    I also do not see local authorities defined as a prefered creditor as per TM chapter 40 part 5? Do you?
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
  • Poppa_G
    Poppa_G Posts: 100 Forumite
    Thanks DD for simplifying it for me :)
  • debt_doctor
    debt_doctor Posts: 4,595 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    edited 30 November 2011 at 7:16PM

    what shall i do?! im worried they will come a knocking at my new address.

    Hi,

    I suggest you send them an e-mail (dont indicate your current address) along the following lines..............

    I am in receipt of your notification indicating that you can still persue distress against me for arrears to the District Council.

    Whilst you are correct regarding the fact that distress can follow after bankruptcy, you seem to have overlooked the following;

    1) you will still be denied entry to any premis where any of my goods are kept. You only have a right of peaceful entry with permission, you are now notified that permission to enter any premises where I have goods is denied.
    Entry therefore would be tresspass.

    2) should, despite 1) above you be successful in seizing goods then you are required to surrender those goods or the proceeds to the office of the Official Receiver who will retain the proceeds for those who have 'prefered creditor' status.
    Any funds that you obtained by distress will first be used by the Insolvency Service to address their case management fee - currently £1715.00. This would in its self wipe out the vast majority of proceeds from the average levy.

    3) Should any funds survive past the case management fee, they will then be addressed towards preferential creditors. District councils (indeed any local authority) do not have prefered creditor status.

    I think you will agree that any attempt to continue with your action will result in time spent by you with no return.

    I suggest you pass the warrant back to the council as uncollected.

    Yours..................
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
  • alastairq
    alastairq Posts: 5,030 Forumite
    exactly the sort of information that needs passing on.....thanks for that.
    No, I don't think all other drivers are idiots......but some are determined to change my mind.......
  • , I had a council tax bill, was sent to the bailiff’s.
    Paid it off or so I thought.
    The bailiff staff did not put down the correct address, so I was asked to get an authorisation code, because they had taken payment but it has not cleared.
    I called the bank got the code.
    Called the bailiffs and to my knowledge the payment was taken due to the fact I gave the code.
    Unfortunately for me, I did not take the person’s name, and they never did it.
    6 months later the bailiffs arrive this time the bill has nearly doubled.
    I asked why, they state that payment is late and it is there fees
    To the best of my knowledge the fees should be as stated below
    Please note that under The Statutory Fees they can charge, are as follows:
    First visit fee: £24.50
    This is for a first attendance to levy, but where a levy does not takes place. (For example; where you are not in)
    Second visit fee: £18.00

    Now, I have requested a statement, the bailiffs office claims they cannot send me a statement because the bill is with the bailiff and I need to pay him in order to stop the visits to the property.
    Please advice.
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