Can council force bankrupcy?

starlight_xx

PippaGirl wrote: »

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?

I was under the impression one of the rules of this board was people werent judgemental. I have had various other financial issues which Im not going to go into, which have resulted in the arrears, now these are sorted Im trying to resolve the council tax issue.

starlight_xx

Buzby wrote: »

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.

Its Renfrewshire council not GCC.

Ill try that - thanks

coolcait wrote: »

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.

Thanks very much x

kepar

starlight_xx wrote: »

I was under the impression one of the rules of this board was people werent judgemental. I have had various other financial issues which Im not going to go into, which have resulted in the arrears, now these are sorted Im trying to resolve the council tax issue.

To be honest , I believe Pippa was trying to say that along with HMRC and VAT Council Tax is the one that you have to pay above others. If you are forced to go br, it will be looked at why you were favouring others over the CT.

PippaGirl_2

Yes that's what I was saying, trying to find the reason it hadn't been paid as BR will look at that.

starlight_xx

Looking for more advice please. Ive offered WL £70 a month, theyve knocked this back saying the minimum theyll take is £150 - theres no way I can afford that.

Whats my best route now.

If they were to go down the route of bankrupcy proceedings would it go in my favour with the council or the courts if I make the regular payments of £70 I proposed. Surely the council are better getting that than nothing??

tigerfeet2006

Yep! It would stand you in very good stead to start paying what you can afford. By the time they could get it to court you will have just about cleared it.

starlight_xx

Thanks Maybe Im naive but Id hope if the council see I AM making regular payments that would stop them going down that route Id think theyd rather have regular payments coming than write off the debt

Do you think theres any point in writing to the Council with the details of my payment offer and the fact it was rejected. Are they likely to deal with me direct at this stage?

antonic

starlight_xx wrote: »

Thanks Maybe Im naive but Id hope if the council see I AM making regular payments that would stop them going down that route Id think theyd rather have regular payments coming than write off the debt

Do you think theres any point in writing to the Council with the details of my payment offer and the fact it was rejected. Are they likely to deal with me direct at this stage?

People seem to forget that they are obliged to pay any amount off any debt that it is owed, in respect of CT, VAT, Income Tax , the company cant refuse your £70/month (or shouldnt) and you should make the Council aware of their refusal of your offer.

If the Council make you bankrupt it means that they can write your debt off as a bad debt and its no longer on their books.

justjohn

In Scotland they can and do force bankruptcy. Unsure however what the law states regarding if you make nominal payments.

BobQ

starlight_xx wrote: »

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

I cannot understand why you have been ignoring a debt to the Council when they should be your priority debt. You clearly have the means to pay off a personal loan, so why have you not paid the Council (most of) what you can afford? Of course paying the CT now would help but if they think you have been using whatever income you can reasonably afford to say pay off a loan used to buy a car they may not be very sympathetic.