pre-bankruptcy - CT issues plus others

gettingready

Hopefully someone can advise.

My daughter has no choice but to declare herself bankrupt - business did not work out, she came back home with massive debts and has no way of paying them.

Rent around 8k, various loans (3 pay day loans in that), gas/electric bills, water bill, mobile bill, credit cards, catalogue etc.

Total about 30k, she is only 23 yo (!!!).

She is currently staying with me and will be applying for JSA, was waiting for a basic Co-op account - that was sorted late last week.

Today her CT bill arrived at my address:

A Liability Order was granted to the Council of....Magistrates Court on the 03/07/2013 (she came back home on the 22nd June). The Liability Order now enables the Council to either distrain upon your goods, make an attachment against your earnings or to request deductions be made from your Income Support, Income Based JSA, ESA or Pension Credit. I must now inform you that unless payment of £750.76 is made in full within fourteen days the Council will commence one of the recovery options without further notice.

In accordance with Regulation 36 of the Council Tax (Administration and Enforcement)you are under a duty to supply relevant information to the Council, and I must ask you to complete the enclosed request for information form and return it to the Council within the next fourteen days.

Ad I mentioned, she moved in with me (London) , the CT bill is for business premises she was renting in Cumbria between August 2012 and 22nd June 2013. She took the business on with her then b/f, they split out and he moved out in January 2013 - they are asking her to provide them with his address. We have his phone number but not his address - as I mentioned, they split up in january this year.

Considering the bill is for Cumbria, she lives with me in London now and plans to fill in for bankrupcy within a month - what can we do with the letter/CT issue?

I obviously do not want anyone to turn up in my flat and try to take MY thinks away for her debts - all in the flat here belongs to me, not to her.

Does the letter from the CT means it is a CCJ? Can the CT still be included in bankruptcy?

I am still unsure about all debts - amounts/debtors details so this is delaying the bankruptcy application. Please the fact she needs to petition in a court where she lived for the past 6 months. Train fare (£100) on top of the bankruptcy fees. Sigh.. Any way to petition in London court? Without having to wait 6 months?

Sorry, all over the place with this but perhaps someone can help?

Found this info:

http://www.bailiffadviceonline.co.uk/counciltax.htm

If she writes to the council and offers some token payment (how much? she has no income at all at the moment) can this all be delayed till she petitions for the bankruptcy?

Thanks a lot

gettingready

Just realised there is a page that she needs to fill in about her income and expenses.

At the moment she does not have any income, she will be applying for JSA on Monday.

Also there is a question about how much family members contribute to the household - what does she write in there?

She lives with me but I absolutely do not want MY income to be taken into account for her debts repayments calculations, why should I? Honestly?

It also says to send a cheque with payment if asking to pay by installment BUT also that they will not accept less than equivalent of 1 week's CT and all have to be paid by 31st march so that means 8 months to pay which works out about £93 per month - from her 56 per week JSA (if she gets it).

Thanks a lot if anyone can help.

gettingready

Anyone knows and can suggest what to do/how to handle this?

Txs

fermi

I would say put in a nominal offer for now and see how it goes.

debt doctor is probably the best placed to comment more? I'll give him a PM.

gettingready

Thanks a lot Fermi, really appreciated.

debt_doctor

Hi,
Firstly the Liability Order guarantees that this debt will go in to BR. If she intends to petition in a month anyway then she has little to worry about. She needs to contact the council tomorrow and tell them that she has nil income until her JSA comes in to play where she will accept £3.60 pw taken from her benefits.
However, by the time JSA actually comes in to payment she will be BR so the payments will never start. If they did start they would have to stop as soon as she was BR.
She must provide the information to the council (nil income) as she will be liable for up to a level 2 fine if she doesn't, which would not form part of her BR.

EDIT - also you do not have to have lived in the local court area for 6 months - it is the GREATER part of the last 6 months so if she has lived in the local courts area from 3 months and 1 day onwards she can petition there.

DD

gettingready

Thanks a million DD.

gettingready

In that case I would prefer to wait with the bankruptcy till 3 months and 1 day in London, she moved back here 22nd June so 23rd September she could petition in a London court, right?

How to delay any action from the CT people till then?

Their letter clearly says they will not accept less than equivalent of weekly CT amount as installment. They have also sent an income/outgoing sheet, how to fill this one in for her please?

Yes, I am doing most of the "work" on this as she is depressed beyond belief.

Thanks a million again.

gettingready

Debt Doctor - how can she provide information to the Council about current NIL income? Just write a letter saying so?

They enclosed an income/expenses sheet but no idea what to put there as she has no income and lives with me at the moment.

What about telling them she will accept £3.90 to be taken off her JSA (if/when she gets it), £3.90 per week? Month? I believe this is paid 2 weekly directly to the account.

Thanks a lot

debt_doctor

Hi,

It is £3.60 per week (5% of a single persons JSA over 25 years - appreciate she is under 25 but deduction is the same)

Use the form and write NIL in the income section and explain (perhaps on an attached sheet) that she is awaiting benefits.

They will have to accept this declaration - it's impossible to prove you DONT have something!

DD

gettingready

Thanks a lot for that