Bankruptcy

debt_doctor

Old council tax, that's interesting.

A council has 6 years to obtain a liability order from when the money became due. Without the liability order any enforcement of the debt is not possible.

Is it actually the council contacting you or someone acting on their behalf?

DD

darcy115

Hi

Yes it is the Council tax that are contacting me and I think they are just inside the 6 years, they do have a liability order.

The letter states If I do not pay in full or contact them with an agreement within 14 days of the date of the letter 6/3, they will instruct their appointed solicitor to commence immediate br proceedings under the provisions od section 267 insolvency act 1986.

My main question is will it matter if I leave them to declare me br or declare myself br as this was my plan initially

debt_doctor

Other than what I said earlier, there is no material difference whether you petition yourself or someone petitions against you - except of course, they will pay the costs, not you! (if you have any money saved towards your BR costs they would be seized if you still had such monies at the time you were made BR.
Councils don't threaten BR without intent like debt collectors do, so they could well be serious. Rather foolish if you have no assets and not much income.
Do remember that c/tax always remains a priority debt and the possibility of committal proceedings does exist, so you need to look out for such notification and seek advice promptl should this happen.

DD

darcy115

so could they still do committal proceedings even once they go forward with the bankruptcy this is a major concern of mine, I am aware they are a priority debt but unless I have a windfall I am struggling to live with my wage. I have no assets, live on my own and have a negative disposable income

debt_doctor

darcy115 wrote: »

so could they still do committal proceedings even once they go forward with the bankruptcy this is a major concern of mine, I am aware they are a priority debt but unless I have a windfall I am struggling to live with my wage. I have no assets, live on my own and have a negative disposable income

If you are made BR then that will be the end of the matter. A council would have to prove wilful refusal and / or culpable neglect, and essentially it ends up with a means hearing to decide what you can afford - anywhere from £3.55 pw upwards, or the balance could be written off, although rare.
You would know if such proceedings were going to happen.

DD

arcon5

If you was going to declare BR anyway then take this golden opportunity and save yourself £700. Many of us would have dreamed of this happening

alastairq

arcon5 wrote: »

If you was going to declare BR anyway then take this golden opportunity and save yourself £700. Many of us would have dreamed of this happening

and I didn't say this, but the £700 that was set aside for the fee's?

Well, under the mattress is the best place for it for the time being, eh?:eek:

darcy115

Thank you for your advice everyone i haven't been notified of any other proceedings that may be happening apart from the notice for bankruptcy DD