New High Court ruling on Council tax/rates liability in bankruptcy/insolvency

debt_doctor

National_Debtline wrote: »

Hey thanks for that. I tried to locate further information via our intranet yesterday but couldn't find it. I'll amend my post. I've heard that the case may be subject to an appeal - Have you heard anything about that?

- David.

I have heard general chat that a council may appeal, but have seen nothing to suggest an appeal is actually pending - that could change of course!


DD

Bridge1

The following amounts for council tax are provable debts in bankruptcy:

a. All arrears outstanding at the date of the bankruptcy order.

b. The monthly instalment for the month in which the
bankruptcy order is made where, at the date of the bankruptcy order the day on which that payment is due has passed and the payment has not been made.

Bridge1

I forgot to add if you have received a reminder notice and, as a consequence, the whole amount of the council tax for the year is due and payable the whole sum is a provable debt in bankruptcy

DorisTrousers

As it stands, the whole of the Council Tax for the current year, regardless of whether you are in arrears or not, received a demand etc, is a debt that is now covered by IVA, BR and DRO.

macbabypam

Have I got this right?
I was BR with OH in September 2013. I continued to pay my Council Tax by installments and have got new bill for 2014- 2015.

Can I ask for a refund of the installments paid from Septmeber 2013 until April 2014 and could I still pay my new bill by installments.

Thanks for and advice

CIS

could I still pay my new bill by installments.

You will be automatically given instalments for the new years council tax charge.

Can I ask for a refund of the instalments paid from September 2013 until April 2014

The changes aren't retrospective.

rizla_king

macbabypam wrote: »

Can I ask for a refund of the installments paid from Septmeber 2013 until April 2014 and could I still pay my new bill by installments.

I would. The judgement itself is about that years tax or rates so if it applies in the case of that judgement it must to you as well.

alastairq

rizla_king wrote: »

I would. The judgement itself is about that years tax or rates so if it applies in the case of that judgement it must to you as well.

Would the 'refund' not go directly to the Official Receiver?

macbabypam

I would have to ask about that but even if that were the case it is only fair that he decides who should get the money.

longtermplanner

macbabypam wrote: »

Can I ask for a refund of the installments paid from Septmeber 2013 until April 2014

If you have an IPA, then if you didn't have to pay council tax, then your would have more surplus income which would then increase your IPA. So this would be pointless.

If you don't have an IPA, would not paying council tax change your situation so an IPA might be imposed? If so, then I would steer well away from this.