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counciltaxvictim

I would be very grateful for advice.

Many years ago I was unemplyed and in dire straights financially and not paying my rates. Despite everything they could try, they never got any money out of me because I simply didn't have any. If I had any, I would have paid. So they got some attachment orders and left it all on file. Then I got a job and they found out and the attachment orders kicked in. Then they ran out and I believed I had cleared my arrears. My last council tax statement, which used to show arrears at the foot, did not show any arrears any more.

So a couple of weeks ago, out of the blue, I get three letters from Equita demanding immediate payment of arrears, for three consecutive years back around 2010. I contacted the council who confirmed I did owe arrears and I protested about not knowing about them. "It's on your statement," they said. So I sent them a photo of it and it clearly is not. "We're not required to tell you you are in arrears," they respond, "You have to deal with Equita now."

Then I went away for ten days and on my return find a hand delivered Enforcement Letter. It covers one year of arrears although it doesn't say which, and includes a £75 compliance fee and more than £500 as an enforcement fee. The £500 amount is an odd number and looks clearly made up.

What is my best course of action? I am still struggling financially although if I have to do an income and expenditure report it'll not look like it. I'm paying friends back for earlier loans amongst other things. I am depressed although I haven't been clinically diagnosed because even to apply for it is depressing and stressful enough.

I'd like to pay the council back at £50 per month per year of arrears, which will still be a stretch at £150 in total, but that ought to clear them well within three years, which I remember from previous experience, the courts think is reasonable.

If you think I should do that, do I pay it directly to the council and how do I go about doing it in such a way that the payments are applied to all three debts, not just one leaving me doing nothing on paper about the other two?

The 'worst case' scenario is they get three new attachment orders which run consecutively. But they didn't do that, they Capita, sent it to their subsidiary company, Equita. Capita get a lot more money from doing that, maybe £600 on each of the three lots of arrears. Neither of them are going to be motivated to treating me fairly.

Is there any way of challenging the enforcement fee for unfairness? Or are they able to literally make up any number they like and it is legally payable?

With these being such old debts, does Equita have to abide by the new rules or the old rules of conduct? Or does it count from the time they initiated action?

I am well aware of the need NOT to let them into the house, but my car is parked on the drive. It's old, it's worth maybe £1200 and I need it to get to work. I remember from the last time I went through all this that they couldn't seize a car under those circumstances, is that still the case? There's no point parking it elsewhere because it was on the drive when they dropped off the Enforcement Notice so they know about it.

I have been paying my council tax in full and on time for at least the last four/five years now.

Thank you.

Former_StepChange_Patience

Hi there

Thanks for posting on the forum.

I’m sorry to hear about the council tax arrears you’ve previously faced and the mental health and financial difficulties you’re experiencing now.

If you feel you’re not getting any support for your health contacting your GP would be a good place to start with. There are also organisations like MIND who are a mental health charity who will happily help: https://www.mind.org.uk/

Without looking at your financial situation it would be difficult to say what you should pay to each of the council tax years, but if you feel the £50 per debt would be manageable it would need to be paid to the enforcement agent as they are now collecting that debt.

The enforcement agent fees are set, you can find out further information about this here: https://www.citizensadvice.org.uk/debt-and-money/action-your-creditor-can-take/bailiffs/how-bailiffs-should-treat-you/check-bailiffs-fees/ and ways to complain if you feel that the fees you’ve been charged are incorrect.

Our website also explains what creditors can and can’t do: https://www.stepchange.org/debt-info/bailiffs/what-can-bailiffs-take.aspx

From what you’ve explained it would be useful to create a budget and I feel you should seek some impartial debt advice.

If you would like us to have a look at your circumstances, you can start a budget with us either online or over the phone and see what options we can suggest. There's no obligation to go ahead with anything we recommend and details of how you can contact us can be found here: www.stepchange.org/Contactus

I hope this helps.

Patience

counciltaxvictim wrote: »

I would be very grateful for advice.

Many years ago I was unemplyed and in dire straights financially and not paying my rates. Despite everything they could try, they never got any money out of me because I simply didn't have any. If I had any, I would have paid. So they got some attachment orders and left it all on file. Then I got a job and they found out and the attachment orders kicked in. Then they ran out and I believed I had cleared my arrears. My last council tax statement, which used to show arrears at the foot, did not show any arrears any more.

So a couple of weeks ago, out of the blue, I get three letters from Equita demanding immediate payment of arrears, for three consecutive years back around 2010. I contacted the council who confirmed I did owe arrears and I protested about not knowing about them. "It's on your statement," they said. So I sent them a photo of it and it clearly is not. "We're not required to tell you you are in arrears," they respond, "You have to deal with Equita now."

Then I went away for ten days and on my return find a hand delivered Enforcement Letter. It covers one year of arrears although it doesn't say which, and includes a £75 compliance fee and more than £500 as an enforcement fee. The £500 amount is an odd number and looks clearly made up.

What is my best course of action? I am still struggling financially although if I have to do an income and expenditure report it'll not look like it. I'm paying friends back for earlier loans amongst other things. I am depressed although I haven't been clinically diagnosed because even to apply for it is depressing and stressful enough.

I'd like to pay the council back at £50 per month per year of arrears, which will still be a stretch at £150 in total, but that ought to clear them well within three years, which I remember from previous experience, the courts think is reasonable.

If you think I should do that, do I pay it directly to the council and how do I go about doing it in such a way that the payments are applied to all three debts, not just one leaving me doing nothing on paper about the other two?

The 'worst case' scenario is they get three new attachment orders which run consecutively. But they didn't do that, they Capita, sent it to their subsidiary company, Equita. Capita get a lot more money from doing that, maybe £600 on each of the three lots of arrears. Neither of them are going to be motivated to treating me fairly.

Is there any way of challenging the enforcement fee for unfairness? Or are they able to literally make up any number they like and it is legally payable?

With these being such old debts, does Equita have to abide by the new rules or the old rules of conduct? Or does it count from the time they initiated action?

I am well aware of the need NOT to let them into the house, but my car is parked on the drive. It's old, it's worth maybe £1200 and I need it to get to work. I remember from the last time I went through all this that they couldn't seize a car under those circumstances, is that still the case? There's no point parking it elsewhere because it was on the drive when they dropped off the Enforcement Notice so they know about it.

I have been paying my council tax in full and on time for at least the last four/five years now.

Thank you.

shopaholic2

Hello, I’m looking for some advice please.
I entered into an IVA in February this year, with PayPlan ( which I thought was a debt charity but appear to be wrong!)
Anyway my budget is incredibly tight and has just got tighter due to an increase in utility payments.
I just feel like I can’t maintain my payments but what other options do I have? If the IVA fails, what then?
It’s my sons birthday next month and I’ve got nothing to give him and no spare money to buy him anything.
My debts amount to approx 6k and bankruptcy isn’t an option.
Any help would be most appreciated
Thank you

StepChange_Kirsty

Hi there,

Thanks for your post.

I’m not sure if Payplan are a registered charity but like StepChange they do certainly provide free help and advice. With individual voluntary arrangements (IVA’s) there are always fee’s associated even with StepChange Voluntary Arrangements however they’re built into the proposal and because you still only pay an affordable monthly amount, if your IVA completes then it’s a cost to your creditors as they end up writing off more of your debt.

If you’re finding your monthly payments unaffordable, I would recommend speaking to Payplan to see if there is any scope for a review of your budget and payment considering your utility bills increasing. Hopefully they will be able to help you to find a way to continue with your IVA.

If your Insolvency Practitioner at Payplan recommends that the IVA should be terminated due to affordability, then the debts will go back to owing and it would be important to seek alternative debt advice by speaking to Payplan or you can seek advice from ourselves at StepChange. We do not suggest cancelling your IVA unless you and your own Insolvency Practitioner feel it is for the best.

I hope this helps.

Kirsty

shopaholic2 wrote: »

Hello, I’m looking for some advice please.
I entered into an IVA in February this year, with PayPlan ( which I thought was a debt charity but appear to be wrong!)
Anyway my budget is incredibly tight and has just got tighter due to an increase in utility payments.
I just feel like I can’t maintain my payments but what other options do I have? If the IVA fails, what then?
It’s my sons birthday next month and I’ve got nothing to give him and no spare money to buy him anything.
My debts amount to approx 6k and bankruptcy isn’t an option.
Any help would be most appreciated
Thank you

fatbelly

shopaholic2 wrote: »

Hello, I’m looking for some advice please.
I entered into an IVA in February this year, with PayPlan ( which I thought was a debt charity but appear to be wrong!)
Anyway my budget is incredibly tight and has just got tighter due to an increase in utility payments.
I just feel like I can’t maintain my payments but what other options do I have? If the IVA fails, what then?
It’s my sons birthday next month and I’ve got nothing to give him and no spare money to buy him anything.
My debts amount to approx 6k and bankruptcy isn’t an option.
Any help would be most appreciated
Thank you

As far as your IVA is concerned, Payplan is an IP (Insolvency Practitioner) and I guess one view would be that they are much of a muchness these days.

Now with 6k of debt I am very surprised that you went for (were persuaded to go for) an IVA. A debt management plan of £100 per month would have been as effective in all likelihood.

As for what your options are now, why not pop over to the main dfw board and post a statement of affairs - we'll have a look at it.

Apologies to stepchange for butting in but I realise it is difficult for you to make comments about your main competitor.

Confusedbybanks

Hi, my husband and I are having trouble budgeting. I get paid monthly but he gets paid weekly. I pay the monthly rent and most of the household bills at the start of the month which leaves me with barely any money left and then he pays me back rent money each week for the rest of the month. From the spreadsheet I use to keep track of bills we should have about £800 'spare' each month to cover food and any additional expenses so theoretically we should have some leftover for a few little luxuries like a trip to the cinema every now and then. But we are barely managing to get by each week. Can you recommend a budget app that would help us keep better track of things or anything else we can do? Thanks.

SnowTiger

Confusedbybanks wrote: »

Hi, my husband and I are having trouble budgeting. I get paid monthly but he gets paid weekly. I pay the monthly rent and most of the household bills at the start of the month which leaves me with barely any money left and then he pays me back rent money each week for the rest of the month. From the spreadsheet I use to keep track of bills we should have about £800 'spare' each month to cover food and any additional expenses so theoretically we should have some leftover for a few little luxuries like a trip to the cinema every now and then. But we are barely managing to get by each week. Can you recommend a budget app that would help us keep better track of things or anything else we can do? Thanks.

Probably best to start a new thread of your own and post a Statement of Affairs.

http://www.stoozing.com/calculator/soa.php

'Look after the pennies and the pounds will look after themselves.' You may find keeping a spending diary useful, perhaps on your phone, listing all those little extras. Starbucks/Costa coffee, bought sandwiches, magazines, etc can add up to a lot every month.

You should try to build up some savings. Then it wouldn't mattered whether you or your partner were paid monthly or weekly.

Former_StepChange_Joe

Hello

Thanks for posting and welcome to the forum.

I appreciate it can be difficult to budget when your income arrives at different times through the month. While I can’t specifically recommend any budgeting apps, you may find the following useful:

StepChange Debt Remedy self-help tool: https://www.stepchange.org/start.aspx.

Money Advice Service budget planner: https://www.moneyadviceservice.org.uk/en/tools/budget-planner

Money Saving Expert budget planner: https://www.moneysavingexpert.com/banking/Budget-planning/#bplanner

I hope you’ve found this helpful.

Joe

Confusedbybanks wrote: »

Hi, my husband and I are having trouble budgeting. I get paid monthly but he gets paid weekly. I pay the monthly rent and most of the household bills at the start of the month which leaves me with barely any money left and then he pays me back rent money each week for the rest of the month. From the spreadsheet I use to keep track of bills we should have about £800 'spare' each month to cover food and any additional expenses so theoretically we should have some leftover for a few little luxuries like a trip to the cinema every now and then. But we are barely managing to get by each week. Can you recommend a budget app that would help us keep better track of things or anything else we can do? Thanks.

Med1991

Hi there,

A bit of an odd situation here. So I have never had a great relationship with money and throughout university the situation has not really improved. I have many credit cards, you could argue that perhaps they are not all needed but that doesn't change the situation I find myself in. I have manged to keep on top of these, but I have just finished university so no longer have a regular income.

Thankfully I have a Job that is confirmed and I will start at the end of July. The salary for this Job is approx 37K plus I receive free accommodation, so plenty of disposable income to pay my debts! My question is what do I do in the meantime? Do I tell the companies this, will they even believe me? I don't want to go and receive a load of hassle for missed payments and charges or even worse more defaults, when I am able to pay very soon.

Any advice you can give would be gratefully received

Many thanks,

Sam

Former_StepChange_Joe

Hello Sam

Thanks for posting and welcome to the forum.

First, congratulations on finishing university and securing a new job, it sounds great. I understand however that you’re concerned about having a gap in your income in the meantime.

If you can’t afford your minimum payments between now and starting your new job, you can absolutely get in touch with the creditors to tell them about this. Tell them you plan to get back on top of your payments from the end of July. Offer each of them a goodwill gesture payment in the meantime – this should be a fair amount that you can afford, and be paid by standing order, cash payment or bank transfer. Ask them to give you 30 to 60 days breathing space with no further action or interest and charges. There's more information about breathing space on our website here: https://www.stepchange.org/debt-info/your-rights/breathing-space.aspx

There’s no guarantee they’ll agree to this but there’s a very good chance they will. You should also be able to avoid a default notice if you manage to get back up to date once you’re back in work.

I hope you’ve found this helpful. Good luck with your new job.

Joe

Med1991 wrote: »

Hi there,
A bit of an odd situation here. So I have never had a great relationship with money and throughout university the situation has not really improved. I have many credit cards, you could argue that perhaps they are not all needed but that doesn't change the situation I find myself in. I have manged to keep on top of these, but I have just finished university so no longer have a regular income.
Thankfully I have a Job that is confirmed and I will start at the end of July. The salary for this Job is approx 37K plus I receive free accommodation, so plenty of disposable income to pay my debts! My question is what do I do in the meantime? Do I tell the companies this, will they even believe me? I don't want to go and receive a load of hassle for missed payments and charges or even worse more defaults, when I am able to pay very soon.
Any advice you can give would be gratefully received
Many thanks,
Sam