Phoenix Debt Collection & Council Tax

Jared91

Hi everyone i'm new to the forum and thought this would be the best pace to seek some help!!!

In a nut shell I was evicted from a property in 2015 due to rent arrears the reason being is I was a self-employed plasterer at the time I broke my wrist was off work for 10 weeks and when I came back from my injury there was no work for a further 3 months I was on a short term tenancy agreement and was turfed out! I sofa surfed for quite some time then ended up in house shares and summer last year moved to manchester and turned my life around and I'm going back to university in September! When i couldn't pay rent I also fell behind with council tax but when I got kicked out and where my life was at at the time I didn't pay any mind to it!

I received a letter last october time from a company called phoenix, saying they had the debt for council tax and i owed them around £800 i spoke to my old local council and they told me i had lost the right to pay by instalments, i then contacted phoenix and they told me they expected full payment something which i told them was simply not feasible for me, they then wanted a break down of my outgoings etc which i didn't end up providing, since that contact i have moved property and again focused on sorting my life and putting other issues such as debt to the back of my mind, until today i received a text saying an enforcement agent had been to my property to collect £1200 thats an extra £400 on top of what they said i initially owed!!! Now i'm scared, worried and unsure of what action to take! I know i should of probably done something sooner but dealing with other issues in my life which will help me in the long run was more of a priority to me, so basically guys and help and advice on what i should do from here on out would mean the absolute world to me as I don't want to slip in to depression again due to money!!!

Thank you so much in advance.

National_Debtline

Hi Jared91 and welcome to MSE,


Council tax is a debt that is always classed as a priority even after you leave the property that the debt is from. You are right to take action now to try and sort it.

The key issue is, did the bailiffs come inside when they visited? If they have never been inside any property before and no list of your items have been signed (known as a Controlled Goods Agreement) then these bailiffs can only come inside your home if you let them in, or if they find open or unlocked access. So, do not let them in and hide anything valuable outside - like a car. If the bailiffs have been inside your home I would suggest calling one of the free debt charities for help.


Do a SOA and look at what you can afford to pay. Write or email the bailiffs with your offer and wait for their written response. Even if they refuse you should still be able to make the payments, either online or over the phone. The bailiffs will have added a £75 compliance fee and a £235 enforcement fee. If you are concerned they have added more than £310 worth of fees, ask them for a written breakdown of the debt. Good luck,


Laura
@natdebtline

Jared91

No-one has been in to my home no and I don't have too many valuables anyway, so what happens if they refuse the payment plan but I make payments?

Thank you for your reply!

National_Debtline

Hello again,


So, it is great news that they haven't been inside before - make sure you keep it that way. If the bailiffs refuse your payment plan offer then I am afraid they can continue to visit (so make sure you stay cautious). They will stop either once the debt is paid off, or they pass the matter back to the council. There is no clear time frame on how long that will take.


If they do return it to the council their fees will come off the debt and you may be able to negotiate with the council directly to clear the debt, or the council may look at what other enforcement/ action is necessary. It is important that you are never seen to be refusing to pay or ignoring the debt.


Most bailiffs websites have a payment service that you can use. I would suggest you start to make payments on there and keep a record of what you have paid, as well as writing to them and trying to get them to agree to this so that they agree to stop visiting as well. We have a factsheet about this that may also be useful - https://www.nationaldebtline.org/EW/factsheets/Pages/council-tax-recovery/counciltaxdebt.aspx


Laura
@natdebtline

Chloel9395

Hi,

I know this is a old post!! But I really need some advice if possible.

I have been struggling to pay my council tax for a while now, however I have made payments every month without fail even if it’s £20. I set up a payment plan last year to pay £40 monthly, which was done by direct debit and not one payment was missed, the council said I could do this for four months, after the four months. I would need to make full payment, I couldn’t do this. I am out of work, I have health issues, so I struggled for the past 5/6 months and upped the payment to £50 a month each month again was paid on time. I received a letter today to say they have sent my account over to Phoenix Commerical, so now what’s the next steps?

I don’t have much and everything in my home isn’t in my name, pretty much everything is in my husbands name, I can’t get money from anywhere, well not to pay the whole thing off which is around £650. But I am willing to pay £100 a month to get the debt cleared, but I’ve read online that the company sometimes refuses payment plans and wants the full amount please someone give me some advice I’m so stressed and my anexity is through the roof. Thank you

DannyPearce90

I have looked into options for your issue with council tax debt.

There are formal options to write off council tax debts, is this something you would consider?

I found these 2 resources when I googled which councils would accept an IVA:

https://www.stepchange.org/debt-info/council-tax-debt-and-iva.aspx
https://www.iva-advice.co/resources/council-tax-arrears.html

Let me know how you get on!