Council tax & bankruptcy

edited 30 November -1 at 1:00AM in Bankruptcy & Living With It
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JenieJenie Forumite
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edited 30 November -1 at 1:00AM in Bankruptcy & Living With It
I was approved for bankruptcy on Tues. My main debt was for a shortfall of my mortgage, by not being able to get my ex to leave the property. It was a domestic violent relationship so I left It up to the mortgage company to eventually reposess. 6months before repossession he left making me liable for the council tax as it was my property. I have included this in my bankruptcy but have read the council can still send out bailiffs to recover via possessions. Is this quite common practice or are they likely to leave me alone as they will eventually be wrote off at the end of my bankruptcy. The debt was roughly £800
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  • TheGardenerTheGardener Forumite
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    Any provable debt (including council tax for the year) will fall into your BR. Once you are BR - any assets belong to the OR and they are rarely interested in domestic goods (unless valuable antiques, state of the art tech stuff etc ) NO debt collector (of any unsecured debts) can take anything one you are BR.
  • JenieJenie Forumite
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    *council tax arrears for which your local authority has obtained a council tax liability order before bankruptcy - your local authority has the right to use bailiffs to recover payment after a bankruptcy order is made. They can't make you pay in any other way, for example by taking money from your wages*

    It was this section from CAB that I read, I have no assets to take but reading this worried me. Really would like to avoid dealing with bailiffs
  • TheGardenerTheGardener Forumite
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    Well I hadn't heard of that one - maybe one for one of the board experts - Debtdoctor.

    So I take it form your post that the council already HAD got a CT liability order before you went BR?
  • JenieJenie Forumite
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    Yes they obtained the liability order the week before I went bankrupt. Although I was asking to put a payment plan in place, they said they had to obtain a liability order with it moving into a new council tax year so they could carry the debt over to set up a payment plan.
  • CISCIS Forumite
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    There are situations where a liability order can be enforced after bankruptcy for a debt due before bankruptcy however it is rare for this to be done due to the inherent problems it can cause.

    An enforcement agent, where they have already been instructed, can only continue action in certain cases (where they have already taken control of goods). It depends how far down the route the process, past the control of goods, has gone by the time the bankruptcy has gone through - https://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch1-12/Chapter9/part5/part_5.htm
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
  • TheGardenerTheGardener Forumite
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    Great info CIS - sorry, I forgot you were our resident CT expert:o
  • edited 20 April 2018 at 11:07AM
    debt_doctordebt_doctor Forumite
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    edited 20 April 2018 at 11:07AM
    Hi,


    Yes, This keeps popping up occasionally - It's a theoretical possibility but something that can be ignored in practice.
    In any event, even if a bailiff did take control of goods, council tax has no preference in bankruptcy, and as your assets are under the control of the official receiver, they would (potentially) need to be handed over!


    Too messy for the IS to get involved in is my guess for any practical application - and of course there are no bailiffs in your case anyway.


    Never seen that happen in 12 years - and this is a big debt team.


    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
  • CISCIS Forumite
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    I've never seen it happen (or even heard of it happening) either in a decade of working in council tax - far too complicated for practical use.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
  • fatbellyfatbelly Forumite
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    Likewise - never heard of it - and my council is pretty keen on using bailiffs wherever possible.
  • JenieJenie Forumite
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    Thank you all so much for your replies, puts my mind at ease hearing this.
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