Council tax & bankruptcy

A1974h

This is what has exactly happened to my 74 year old father. Looks like council summoned a liability order for £800 just before he went into bankruptcy. He heard nothing for two years. He has came out of bankruptcy and a bailiff turned up to the door today. I'm not sure if the council tax was included in the bankruptcy but I'm guessing it was. What do we've do. ?
Do we contact the bailiff company to say my father went into bankruptcy? What rights do they have? Can they arrest his pension? He also has high blood pressure and heart problems. We live in Scotland and any advice would be greatly appreciated.

Jenie

I let the council know today & also emailed them my bankruptcy order. Must be such a worry for your father. Can he ring his OR and see if it was included in the bankruptcy.
I have just come across this with regards to liability order.


40.101 Council Tax

Each District Borough Council levies and collects a tax, called a council tax which is payable in respect of dwellings in its area. The occupiers of the dwellings have joint and several liability for council tax.

Council tax is charged on a yearly basis from 1 April each year [Note 3] but the liability to pay council tax is determined on a daily basis [Note 4]. The billing authority is required to make a demand for payment of the council tax separate to the notification of the amount of council tax and the tax becomes due when that demand is made but most council tax payers agree a statutory monthly payment scheme for payment of council tax [Note 5].

Any amount due and unpaid under the instalment agreement prior to the insolvency order is an unsecured debt in the proceedings [Note 6]. If the bankrupt's council tax is up to date under the instalment agreement at the date of the bankruptcy order, no amount is provable in the bankruptcy as it relates to future occupation of the dwelling.

Where a liability order has been obtained by the council, prior to the bankruptcy order being made the whole debt as notified within the liability order becomes due and it is therefore a provable debt as defined in paragraph 40.12

CIS

That is out of date infornation - the interpretation of council tax legislation changed in 2014 to include the entire year as a balance in the bankruptcy whether in arrears or not.
See section 40.53 - https://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch37-48/chapter40/part2/part_2.htm#40.50

CIS

I should add the above refers to England and Wales - Scotland is likely a different process as they tend to have their own rules.

For Scotland it's probably best to speak to the sheriff's officer and the council as chances are that they aren't aware of the bankruptcy. Once you've spoken to them then you can work out what to do next.

Jenie

My apologies was just something I came across.

Also came across something I think was on debt camel, saying to make arrangements with the council for repayment before it reaches the stage of a liability order. Once I was made aware that my ex had left the property and I had become liable for the CT I tried to set up an arrangement with them and they would only allow me to set it up for the smaller amount of £68. Ikept being told that until the liability order was granted for this years CT which allowed them to carry it over into the next year. Would this be normal practice or should they have allowed me to make an arrangement?

CIS

A council may agree a payment arrangement prior to a liability order being granted. In most cases this would be where a summons had been issued and the council agree, as part of the arrangement, to obtain the liability order but not enforce it as long as the arrangement is paid.

For each council tax year the council are unlikely to (and not required to) deviate from the statutory instalment scheme.

Where a liability order is only granted it is only for a specific debt they don't have to allow an arrangement to be applied to any other balances (on a liability order they don't actually have to give any arrangement).