buying council house previously bankrupt

lyndata

Hi I was wondering if anyone can shed any light on this for me.

I was made bankrupt in dec 1999. Ive since built up a reasonably good credit rating and decided to buy my council house, however, I was told my council tax was in arrears but i knew it was clear and phoned the council to make sure and yes it was all up to date.
I then was informed that when I was made bankrupt that this was the total amount of council tax included and declared at the time of bankruptcy and that I cannot buy my council house till this is cleared.
I thought that when I was made bankrupt that that was it...I would never again be pursued for the money included in the bankruptcy...is this the case or not?
Can anyone help?
thanks

SquatNow

Doubt it applies to tax!

lyndata

The council have told me I cant buy the house unless I pay it but it was written of in the bankruptcy so I dont see why I have to...

Doozergirl

I don't have a clue of the ins and outs but surely it is fair that if they give you a nice fat discount on the house that you give them what you owe them too? Even if it was apparantly written off

lyndata

Well actually Im not getting a big discount as that has all been done away with.

Doozergirl

So you're paying full price then?

lyndata

yes ive had it valued and thats the price i will have to pay as its only if youve been in the same property from before 2002 when the new laws came into place

dmg24

Are 'state' debts ever written off by bankruptcy, or is that just the student loan?

Edit: It is DWP overpayments and student loans that are not cleared.

BLUEWKD

I am going into bankruptcy tomorrow and have been told by the CAB who have helped me sort it all out that everything on my creditors list including rent and council tax will be completely cleared.
For some reason your office have got it wrong, but you should have a letter saying what date you went bankrupt, so I would assume (just my opinion) if you took this and your list of payments to show you have paid up to date, this should sort it out.

Also to the person who said that you should pay them what you owed, why? The whole idea of bankruptcy is so that debts can be cancelled and you can start of with a clean slate, hopefully not getting into debt again. It seems that this is what has been done in this case for the last 8 years, so why should you get into debt again paying a bill you don't need to?

Doozergirl

BLUEWKD wrote: »

Also to the person who said that you should pay them what you owed, why? The whole idea of bankruptcy is so that debts can be cancelled and you can start of with a clean slate, hopefully not getting into debt again. It seems that this is what has been done in this case for the last 8 years, so why should you get into debt again paying a bill you don't need to?

Only because you're asking them to give you something? There is still a discount, even if it's smaller than it was. It just doesn't tally in my head that I get something for nothing and actually still owe them something, regardless of the 'tabula rasa'

It's not like taking out a new mortgage where the lender gets their interest payments etc. because the council gets nothing in return. Legal or not, my sense of logic just can't make it tally.

You don't *need* to get yourself into debt because you don't need to buy the house either.

PasturesNew

Yes, if I could get my hands on a council house, I'd be happy/grateful to rent it cheap forever... not be trying to load myself up with commitment/maintenance and immobility for X years.

No need to buy. Which I appreciate isn't the question being asked, but the question is banging out there to be answered!