Council Tax

JTR45

Hi all, I declared myself bankrupt in July. I had my phone interview with the OR and one thing she said was that I didn't have to pay Council Tax for the remainder of the year and should cancel my direct debit. I have done this but now am worried as don't see any info on this on the internet. Everything comes up about Council Tax arrears and including that in bankruptcy. I had none.

Is this right? and if so surely when I start paying it again my IPA will change again as I need more money to pay it? just want to double check I am doing the right thing as suddenly have this worry that the Council will be demanding payment from me! I will check with my OR too of course but she takes ages to reply to anything.

Thanks so much.

toddle2u

The OR is correct the whole years CT is included in the bankruptcy.

HappyMJ

JTR45 wrote: »

Hi all, I declared myself bankrupt in July. I had my phone interview with the OR and one thing she said was that I didn't have to pay Council Tax for the remainder of the year and should cancel my direct debit. I have done this but now am worried as don't see any info on this on the internet. Everything comes up about Council Tax arrears and including that in bankruptcy. I had none.

Is this right? and if so surely when I start paying it again my IPA will change again as I need more money to pay it? just want to double check I am doing the right thing as suddenly have this worry that the Council will be demanding payment from me! I will check with my OR too of course but she takes ages to reply to anything.

Thanks so much.

The council tax is actually due in full when you get the bill. The council is technically giving you credit and allowing you to pay in instalments for no extra charge.

You start paying again from next April.

owlet

If you get an IPA , it can be adjusted as your circumstances change. It's an agreement, not set in stone. When you start to pay council tax next year, contact the OR with an updated SOA & your IPA can be adjusted.

This goes for any changes eg salary increase or decrease / a new regular payment (provided it's essential). You have 21(or 28, not sure) days to report any changes.

elljay

It'd be as well to go with what your OR says, or to double check with them if not sure as I read varying views on this before I went bankrupt. I seem to remember there was a court case about it last year which would determine what should or should not be paid in terms of council tax.

In my case, as I wasn't told different, I continued to pay it as normal, (there were no arrears). The payment was taken into account for my IPA assessment so obviously the OR knew about it.

It makes no difference from your point of view, and I was glad that the local authority received it as it needs every penny it can get!!!

EJ

owlet

The link below is from the government insolvency technical manual.
Read 40.53 Council tax provable debts.

This confirms that council tax arrears & installments due for the current year, are provable debts & included in bankruptcy.

So you do not need to pay council tax until the new bill is issued next year.

https://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch37-48/chapter40/part2/part_2.htm#40.50

JTR45

Thanks everyone. I was just worrying as I had no council tax arrears so thought maybe she had it wrong and I should be paying. But at least I know now that this seems to be normal.