Can council force bankrupcy?

starlight_xx

I notice it says you can only be made bankrupt if debts are over £3000, does that totaly include the fees the debt collectors have added on to it, which appear to be a phenomenal amount.

From reading up on things online, it appears if I do start making regular payments IF the council did try the bankrupcy route the court would be far less likely to go down that road as Im showing willing to pay. Id hope common sense would prevail with the council if the money is being paid regularly.

First cheque sent with a covering letter explaining this is absolutely the most I can afford

starlight_xx

BobQ wrote: »

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.

I dont think I said anywhere the loan was for my car. It wasnt, its a loan I took out over 6 years ago and has no relevance whatsoever to my car.

to be honest I didnt realise the CT was a priority debt. Ive been more worried about ensuring things like my rent, electricity etc have been paid and ensuring theres petrol in my car and its insured and taxed

starlight_xx

I sent my cheque with covering letter explaining that there was no way I could make the payment they wanted but was enclosing the payment I had proposed and would continue to do so every month, and I hoped that if they did suggest the council took further action that my payments would go in my favour.

Got no response other than a receipt for payment, so at least its a start

I take it Im within my rights to ask for a breakdown of the amount they say I owe. It looks as if theyve added an eye watering amount to the debt

PippaGirl_2

They are entitled to those fees too though starlight. Countil tax is always a priority debt as the council have strong powers to enforce payment and often use bailiffs and the court and take legal action. It should come before almost all other bills and certainly before loans. If you have a bank account I would advise setting up a standing to pay off the arrears as well as your DD paying your current CT bill. Hopefully once the council see you are seeing the importance of the arrears and see you have taken steps to pay regularly they will settle down on the legal action. People who send cheques rather than set up a regular payment tend to be less efficient with regular payments on the whole.