Increase in bills

amy17brook

Hi,

Me and my husband have recently been landed with a bill for near on £700 quid for a council tax bill from 2012. We were stupid at the time as we were running a pub and just didn't have the money. We moved and forgot about it.

At the same time we got ourselves into debt trouble and have been paying everything off in bits along with keeping up with current bills. We have been barely keeping afloat and now rent has gone up. My mum used to help with th childcare but she's poorly at the minute so can only help occasionally. So now have to pay extra childcare.

Can anyone help with what I should do about this council tax bill? We have asked for them to send the original letter out to check the dates but they have told us we have a week to sort it before they send debt collectors out.

National_Debtline

Hi amy17brook

Can I ask if the debt is a council tax debt for a residential property, or business rates for business premises? I suspect it may be business rates if it was for a pub, it is important to check as there can be some different options available to deal with the debt.

If the debt is passed on it will be to bailiffs, rather than a debt collection agency. They don’t have the right to force entry unless they have been inside previously. Keep your doors locked, and if you have a car hide it.

It sounds like you may have a number of different debts at the moment and you’re going to need to seek debt advice from one the free debt advice agencies. The first thing they will advise you to start with is a SOA to see where you stand with your finances.
http://www.stoozing.com/calculator/soa.php

If the debt is business rates I’d recommend contacting Business Debtline for advice, you can find their business rates factsheet here
https://www.businessdebtline.org/EW/factsheets/Pages/businessrates/businessratesarrears.aspx

Susie
@natdebtline

amy17brook

The debt is council tax from the glad above not business rates. I work for the civil service and had help from their charity in March with an soa ect. Problem is I'm trying not to skew my credit report at the same time am trying to make at least minimum payments on everything. Just circumstances changed, would feel cheeky ringing them again so soon. Thanks for your response.

National_Debtline

Hi amy17brook

Thanks for clarifying that it is council tax. The advice above applies to council tax bailiffs, as well as those collecting business rates, so remember to keep your doors locked and hide your car (if you have one).

The council tax debt is more important than any unsecured credit debts, I’m afraid your credit report can’t be your priority at the moment. That’s because the council have more powers to collect the debt than any unsecured creditors.

No debt charity will mind you contacting them for advice more than once, that’s what they’re there for. If you prefer try one of the other free services, you can find the details here
https://forums.moneysavingexpert.com/discussion/4228011

Susie
@natdebtline

CIS

Can anyone help with what I should do about this council tax bill? We have asked for them to send the original letter out to check the dates but they have told us we have a week to sort it before they send debt collectors out.

What in particular are you querying ? Is it just to check the dates are correct ?

They should be able to confirm the original dates etc over the phone, there's no specific need to wait for a copy of the original demand notice to get those details.

It's very unlikely to be debt collectors for council tax - in the vast majority of cases the local authority will use a certified enforcement agent to collect the debt.

Craig

amy17brook

Thanks for your replies.
Yes, querying the dates. Phoned them this morning. The dates are off by about 3 weeks which probably isn't alot of difference money wise. She has advised me to appeal that which I will be doing. She said we have to set up an agreement or they'll set up an attachment of earnings for £150. The lowest offer they will take is £50 per month. Both of these are too expensive. I have an soa from March so said I will email it though to her.
So am I supposed to stop paying a credit card and ruin my life to pay for a council tax bill for a rat infested flat? I've worked too hard to start building again to let it slip. I'd rather starve. I can't wait another 6 years to build my credit rating, there's too much depending on it.

GarthThomas

Yes, this is a priority debt, and you absolutely are supposed to pay it off ahead of your credit cards.

If you don't pay then of course it will affect your ability to gain credit in the future. If you are so close to the edge that you can't even afford £50 per month then companies need to know not to extend credit to you.

Are you able to take on evening or weekend work? Can your wife find a route to do similar, anything she can do to earn some extra money with evening / night work?

CIS

She has advised me to appeal that which I will be doing.

On what particular basis ?

Craig

amy17brook

Grounds for appeal on the basis that the dates are wrong but she has also said to put in that we were effectively made homeless and jobless as a result of the breweries actions.

Garth, I don't want extra credit. I would like to buy a house in the next couple of years which you need a credit score for. And before you ask my stepdad is willing to put up funds regarding a springboard mortgage. What makes you assume I'm a man, I assure you I'm not. I work full time as does my husband. Extra hours are not an option at the minute as he works weekends and as previously stated we would have to pay for childcare. Technically we could probably afford 50 a month but it would be a stretch. Will have to have a think about what we can cut back on.

CIS

Grounds for appeal on the basis that the dates are wrong but she has also said to put in that we were effectively made homeless and jobless as a result of the breweries actions.

The dates used possibly - they can be corrected in many cases though without altering the action the council has taken.

In respect of the second point then being out of a job etc has not effect on the legality of the charge - any withdrawal would be purely discretionary after the council (and, to be truthful, unlikely on those grounds due to the length of time - you'd have more chance asking for withdrawal based on your current situation). You could have an argument if you could demonstrate you were not legally liable for the period in time - there may be possibilities in it to do so, dependent on the exact situation (simply holding the lease does not always make you liable).

If you're in financial difficulties you can apply for S13A discretionary relief - either against the arrears, your current council tax or both.

Craig

amy17brook

Thank you, I will definitely have a look at that. We never had a lease. We had to love there as part of our contract. We were effectively managers that were paid a small percentage of takings.