Advice needed on council tax bill For bankrupt

ld1978

Hey all,

My husband was discharged from bankruptcy in 2009 following debts and reposession from a previous relationship. Their home was repossessed and she left him in a lot of debt he wasn't aware of.

We have since married and to help rebuild his credit I put him on my council tax bill (I own the property)

The council have today sent him a letter for council tax from his repossessed property back in 2007. He wasn't aware of this debt otherwise it would of been covered in the bankruptcy order.

Can the council now ask for this if we didn't include it even though he was unaware, or can we say about the bankruptcy. Also surely his ed is liable for half of it? (I suspect they don't know where she is)

He is self employed but all his wages go through my bank due to issues gettng business accounts so they are all in my name. He wouldn't have the 400 to pay in a lump so is this something they can demand.

Any advice on our rights would be appreciated

Thanks

curly04

any council tax prior to the BR will be including in the BR order
contact the council in writing and send them as much information as you have, case number and office dealing and that should be ok.

I would say send it recorded just incase xx

Good luck

ld1978

Will this be the case even though the bankruptcy order was done in 2008 and discharged 2009. He's also done the 3 year court payment so it's all pretty much done and dusted. We didn't it include it in the order as we weren't aware of it. It seems it's comes out of the wood work since moving in with me.

Thanks for the reply

CIS

Technically if it wasn't declared then it can't be covered by the bankruptcy. In any case it would only have been able to be included in the bankruptcy if it had already been due in full by the date the bankruptcy was granted.

If it could be covered by the bankruptcy it wouldn't be written off but they would only pursue the ex-partner for it.

If it wasn't covered in the bankruptcy then they would be both liable for the balance due.

CIS

The council have today sent him a letter for council tax from his repossessed property back in 2007. He wasn't aware of this debt otherwise it would of been covered in the bankruptcy order.

Is it for a period after the repossession or before ?

ld1978

Thanks CIS. The thing is he didn't declare it in the bankruptcy as he didn't know it existed. He's not sure if it was prior to repossession as he can't remember the date. His ex dealt with everything. The bankruptcy was 2008 and the bill states 2007 so it would of been due in full prior to bankruptcy date.

The bill does have a credit for exemption due to unoccupied mortgage in possess so am wondering if this is when they were repossessed?

Do you think it's likely he will have to pay it? Will he be liable for it in full - what about his ex (although no idea where she is)

It seems unfair that he didn't know the bill existed or we could of covered it in the bankruptcy in the first place.

Thanks for all your help

fermi

ld1978 wrote: »

Can the council now ask for this if we didn't include it even though he was unaware, or can we say about the bankruptcy. Also surely his ed is liable for half of it? (I suspect they don't know where she is)

Would be jointly liable for the whole of it.

However, yes, any arrears, or year outstanding and demanded before the bankrupt would be covered.

From the IS:

Legal advice received provides that the following amounts of council tax are provable debts in bankruptcy:

1. All arrears outstanding at the date of the bankruptcy order.
2. The monthly instalment for the month in which the bankruptcy order is made if the date for payment has passed and the payment has not been made.

Further, where the bankrupt has failed to comply with a reminder notice and as a consequence, the whole amount of the council tax for the year is due and payable the whole amount is a provable debt in the bankruptcy.

Shouldn't matter that it wasn't realised at the time and was missed off the forms.

debtinfo

CIS wrote: »

Technically if it wasn't declared then it can't be covered by the bankruptcy.

This is incorrect, any debt that is proveable and dischargeable is included whether declared or not, that is a fundemental principle of bankruptcy

debt_doctor

Hi,

Do we know why he didnt know at the time that there was an outstanding council tax liability?

Was it that the council wrote to the old re possessed address, when you were no longer there AND you had informed them of your new address
or
Did the ex partner hide the information.
or
Something else?

DD

CIS

The bill does have a credit for exemption due to unoccupied mortgage in possess so am wondering if this is when they were repossessed?

A Class L exemption would be awarded for a re-possessed and unoccupied property - assuming this is shown from the date of the re-possession then charge is due from before that date.

A Class Q exemption would be awarded where the property is under the control of the OR - if only 1 party was bankrupt then the other joint party is liable for the council tax and the exemption should not have been awarded.

ld1978

Thanks so in layman terms as this was pre bankruptcy I assume he wont have to pay. I've done a bit of research and it says even if debts weren't in original bo that they are still covered? Is this correct

Thanks