Can council force bankrupcy?

starlight_xx

Ive got into arrears with council tax. I rec'd a letter today from Walker Love (Im in Scotland) saying that as I havent replied to previous letters (I actually have) theyre advising the council to proceed with an action of bankrupcy against me. Is this not counter productive as would this mean they wont get any of the arrears if they do?? The last communication I got from WL was 8 June and I completed a proposal and expenditure form to them.

Is this something the council can do or is it scare tactics?

The council tax debt is the only debt I have, apart from a personal loan which is paid off in a few months. I have no credit cards etc.

So far I havent paid anything towards the arrears, would making a payment this week when I get paid help things any?

Would appreciate some advice

debt_doctor

Hi,
I can only comment on the position in England. In England any council can issue bankruptcy proceedings against someone who owes them more than £ 750.
However, they must have looked at every other enforcement method before doing so.
Any council can also issue commital to prison proceedings (via the magistrates court) although they would have to prove wilful refusal and culpable neglect to pay the tax rather that financial difficulties or financial mismanagement.
You should make an offer based upon your ability to pay, and paying council tax should be in preference to most other debts such as loans, c/cards etc.

DD

starlight_xx

Ive resent a payment proposal form online to them, would you suggest starting to make the proposed payment this week, before they actually accept it or refuse it?

Would that go in my favour if things went further.

The letter certainly says I should contact them with a view to arranging repayment within 7 days of the letter, so Ive done that - again

CIS

Any council can also issue commital to prison proceedings (via the magistrates court) although they would have to prove wilful refusal and culpable neglect to pay the tax rather that financial difficulties or financial mismanagement.

For clarification its 'wilful refusal' or 'culpable neglect' , only one of the two is needed.

debt_doctor

Yes. An important clarification.

DD

starlight_xx

Apparantly you cant be imprisoned in Scotland for this but Im still not sure of where I stand

debt_doctor

starlight_xx wrote: »

Ive resent a payment proposal form online to them, would you suggest starting to make the proposed payment this week, before they actually accept it or refuse it?

Would that go in my favour if things went further.

The letter certainly says I should contact them with a view to arranging repayment within 7 days of the letter, so Ive done that - again

Making payments shows your intent towards the debt, so that would be a good move on your part.
DD

PippaGirl_2

Why have you not been trying you best to pay off this debt? Council tax is up the top there in importance. I just can't understand why you are asking if you should be making payments which implies that you have the ability to do so, then why haven't you done so?

sweetme

Yes they can is the simple answer.

Buzby

Is this GCC? If so, they do have a track record in forcing a Sequestration even if it means they get nothing. I'd make payments directly the Council as this will at least show to the Sheriff your intentions are honourable.

coolcait

If you owe them at least 3,000 - including any interest etc - then they can petition to make you bankrupt. If you owe them less than that they can't (unless they get together with another creditor, and you owe at least 3,000 to them, in total).

If you're able to make a repayment plan, you might want to look into the Debt Arrangement Scheme (DAS). If you're on it, that would give you protection from bankruptcy and from court action to enforce payment of the debt.

It also means that creditors have to freeze interst, fees and charges while you on the DAS, and write them off at the end, as long as you complete it.

You can find more information on www.dasscotland.gov.uk. There's also a money adviser search facility. A lot of the 'hits' are private sector companies, who charge a fee. But there are also plenty of advisers in CAB, or local authority money advice offices (welfare rights etc), who will help you apply for DAS free of charge.

If DAS is the right thing for you, obviously!

Good luck.