Council Tax Liability - joint owners but tax bills in sole name

ky822000

Good News - Update posted at end of thread!

Hi there, sorry if this rambles a bit but I will try to get to the point.

I got home today to find a hand delivered bailliffs letter in relation to Council Tax for my old house. I managed to telephone the relevant council and spoke to a lovely woman who (hopefully) has put a two week hold on the bailliffs while they consider the email they have asked me to send them stating everything I told her today.

Basically, I moved out of the property with OH (now ex) which we owned jointly in May 2009 to run a business with accommodation. In about August 2009 he arranged a private let but he had complete control over the property. It may have been re-let later to someone else at a later date.

In July 2010 we split up, and he was given a two year restraining order (I won't go into details here) meaning we had no contact and I never went back to the area, let alone the house.

I had flooding in the business over Christmas 2011 which made me and my family homeless until the beginning of January, and I was forced into bancruptcy. Obviously, I didn't give my ex a forwarding address!

The council told me tonight that the tenants left in January 2011 and the property had been empty until it sold in March 2012 (I signed the documents sent by his conveyancing solicitors but the ignorant so and so's didn't even bother to confirm the house sale with me).

Apparently, the council tax was automatically put back into my name and this debt has accrued because they have been writing to the old business address.

I understand that as an owner I will have some liability for this but is it right that it went back into my sole name ??

Thank you for reading

Kirstie

HappyMJ

Were you the owner though or did the property revert to the bank when you went bankrupt?

ky822000

Yes, I was the joint owner with the ex OH until the sale. I only found out then that he hadn't been paying the mortgage either (he always wanted the house as an 'asset' when we talked about him leaving before he was finally removed so I don't feel guilty about leaving it with him btw).

My half of the negative equity on sale has been absorbed into the bankruptcy.

ky822000

HappyMJ wrote: »

Were you the owner though or did the property revert to the bank when you went bankrupt?

Actually, I was re-thinking my answer to this while cooking the kids tea...

I was offered the opportunity to purchase the beneficial interest in the property and I refused so, technically, although my name was on the mortgage/land registry documents I may not have even been legally 'in control' of the property. It is just a question of who was 'responsible' for it? It is highly unlikely that ex would have bought the BI if he wasn't intending to use the property (ie, not paying the mortgage).

Thanks HappyMJ, I will add that to my email (I didn't mention it on the phone as it postdates the BR)!

CIS

It is just a question of who was 'responsible' for it?

If you were the owner/joint owner on the land registry then you are for council tax purposes.

As joint owners you were both liable for any council tax due whilst the property was unoccupied and would usually be billed as such however if you weren't then it doesn't prevent the council billing one person and recovering against them.

Where 2 or more people are liable for council tax and billed as such the council can still choose to pursue only 1 party if they so wish. Effectively this is what has happened in your case so although you could ask the council to re-bill in both names its unlikely they would be willing to restart all the action they have taken for them to then later pursue you anyway as the only party they can locate easily.

Barbeduk

Sorry, this might be a dumb question but if you were made bankrupt in jan 2012 would the arrears up to that point be covered by the BR?

CIS

Sorry, this might be a dumb question but if you were made bankrupt in jan 2012 would the arrears up to that point be covered by the BR?

Possibly, depending on the circumstances.

ky822000

Thank you for your replies.

I am not trying to get out of paying anything I owe, I just wanted some advice as this is a debt I was completely unaware of and it came as a bit of a shock!

The ex is fairly easy to find as his entire family lives in the same village (hence why I do not go back there).

There were no arrears prior to my BR as tenants were in the property. I am liable for any debts that I accrue post BR, hence the fact I have tried not to acquire any and thought I was doing really well on that score!!

I will explain my situation to the council and see where we go from there...

CIS

There were no arrears prior to my BR as tenants were in the property. I am liable for any debts that I accrue post BR, hence the fact I have tried not to acquire any and thought I was doing really well on that score!!

You need to contact them and explain re the joint ownership and your bankruptcy, they then really have an option of either writing it off or billing your ex.

fatbelly

ky822000 wrote: »

There were no arrears prior to my BR as tenants were in the property. I am liable for any debts that I accrue post BR, hence the fact I have tried not to acquire any and thought I was doing really well on that score!!

You said earlier that the tenants left in Jan 2011 and inferred you were declared bankrupt in January 2012. So there would have been council tax due for that period and it would have been in joint names with your ex. If he didn't pay, then there is a good chance that this part of the debt would be covered by your bankruptcy.

If there's any problem, run this past your contact at the Insolvency Service.

ky822000

Thank you to everybody for your replies.

BR was January 2011, just as the tenancy in the property ended, so no debt would be included in the BR.

However, after explaining everything in an email to (hope I can name and praise....????) Bromsgrove District Council, the Revenues Officer has replied to me, and his decision is that all liability should lie with my ex partner. My case has been closed and a new bill will be issued to ex OH.

I am obviously over the moon that all bailiff action in respect of this debt has been cancelled (thank you to the powers that be!), but I only 'requested' that they take the case back in house and 'consider the possibility' of joint liability.

My BR was only to stop business debts accruing at over £750 PER WEEK on a flooded property; never about trying not to pay debts I had accrued 'fairly', so I don't quite know how to feel about this...

Anyway, thank you to everyone for your help.

Kirstie