buying council house previously bankrupt

BLUEWKD

Doozergirl wrote: »

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.

Mybe it is the lateness, but I thought that the question being asked was if she should still be down as owing the council tax for money owed before bankruptcy. What does 'tabula rasa' mean?

rebeccaj

BLUEWKD wrote: »

What does 'tabula rasa' mean?

It means 'clean slate' as in wiped the slate clean.

Doozergirl

BLUEWKD wrote: »

Mybe it is the lateness, but I thought that the question being asked was if she should still be down as owing the council tax for money owed before bankruptcy. What does 'tabula rasa' mean?

I did point out that I didn't know the answer but that I could conceive why they were taking that stance. I'm just wondering whether it not being paid, but rather written off may still have an impact on whether they choose to accept the OP on the scheme. They're not telling the OP they have to pay the bill but they are saying it does affect the application, iyswim.

It means clean slate.

wherediditallgo

Only the council tax due up to the date you went bankrupt is covered, because that's the part that is a debt, & bankruptcy only covers actual debt. Any of your council tax that was due for the rest of that financial year & subsequent years has to be paid. That's why councils will often send a revised bill dated for the day after you went bankrupt to let you know how much you still owe. You should speak to your Official Receiver - sometimes they'll contact the council about it (especially when someone hasn't yet been discharged), but be prepared for them to say you've got to pay it.

Unsecured debts that are over 6 years old usually become statute-barred, unless you've acknowledged the debt during that time, in which case the 6-year clock starts ticking again from that point. If you have acknowledged that you owed the money (whether that be in writing or verbally), the council can still expect you to pay up. Even if the Council Tax was due more than 6 years ago, the council may still be able to recover it. Did the council obtain a court order of some kind against you for the debt before you went bankrupt? That's important, as it affects whether they can get the money back & how.

At the end of the day, you might have a right to buy the house, but I don't know that the council can be forced to sell it to you, so you will have to weigh up how much you want the house against how money they say you owe - it could cost you quite a bit to take the matter through the courts. Personally, if I wanted to buy the home I live in under Right To Buy, I would pay what they say I owe unless I can prove that I don't (as opposed to just thinking it was covered by the bankruptcy) & have taken recent professional advice that says that I don't, as it would have been my responsibility to ascertain from my OR in liaison with the creditors what was covered by the bankruptcy & settle anything not covered asap, especially as I wouldn't want creditors chasing me after discharge.

As well as speaking to your Official Receiver, I suggest you post this query on the "Bankruptcy & Living With It" forum, as many more people there will have come across this same situation. Some of the people posting there work as debt advisors, & may be able to give you more info than I have. You can also contact any of the organisations in my signature.

BrandNewDay

You should probably talk to the OR about paying any old debts. I think it may be illegal for you to do so.

silvercar

As I understand it, the council tax owed prior to your bankruptcy will have been wiped out by the bankruptcy order. I know the council can bill you for current council tax from the point you were made bankrupt.

If your current council tax is upto date, then you don't owe any money. Any pre-bankruptcy council tax was included in your bankruptcy and cannot now be demanded.

Putting that aside, the issue of selling you your home is different. The council own the home and they can decide who to sell it to (accepting that they are a council and you have a tenancy etc) and for how much. They are perfectly within their rights to have a policy that people who owed money in the past have to repay that before they will sell; effectively the price to you (only you) increases by the amount previously owed.

To be clear (I hope), you don't owe the unpaid tax, that was wrapped up in your bankruptcy; but, if you want to buy the house, you will have to pay the council the amount you previously owed. If you don't pay it, that's allowed - its not a debt; they just won't sell you the house.

This could well apply even if there is no discount.

lyndata

Thanks for your replies. The council tax debt was covered in the bankruptcy ,I have paid and have continued to pay council tax since then and I thought this site was about help with money matters etc... not about people assuming I got into debt on purpose. Circumstances of people do not come into play here..nor do the hows, wheres and whys of it. I was just looking for a bit of advice.

Doozergirl

lyndata wrote: »

I thought this site was about help with money matters etc... not about people assuming I got into debt on purpose. Circumstances of people do not come into play here..nor do the hows, wheres and whys of it. I was just looking for a bit of advice.

I can't see where anybody has said you did it on purpose I'm going to make the assumption that you are talking about me as my posts seem to be the contentious ones. I have not, at any point considered or made any judgements about your past circumstances, it's irrelevant, apart from anything else. I was merely pointing out that I could see the council's point of view I'm sorry if you didn't like that.

Did you find out where you stand officially eventually? It would certainly be interesting to know!

david29dpo

I too can see the councils point here. You may have had the slate wiped but the council never got there money. If someone owed me money and never paid, would i do anything for them again? PS my council tax goes up most years to cover non payers.:mad:

silvercar

lyndata,

I explained the situation - no judgement, just the facts as they are now. If you don't like the council's action then fair enough, don't shoot the messenger.

It must be frustating to get back on your feet following bankruptcy and then find that debts you thought had disappeared are resurfacing, but moaning at the people who try to explain doesn't help you and won't encourage others to give advice.