Forced bankruptcy

ScottishLad

Hey,

Can anyone help?
Council tax arrears.
Been summoned to a sequestration hearing on 10th December.
What happens from there?
Does everything get froze from there or does it take some time?
We receive some benefits, do they look into that or do you just advise benefits are claimed?
Will it take sometime from when it’s awarded to kick in?
Don’t want to be left stuck over Christmas with nothing.

Any help would be much appreciated.
Thanks
J

bradders1983

Assuming it works exactly the same as an English bankruptcy, you can carry on as you are for now and nobody will start taking anything from you (or to start to delve into your ingoing and outgoings) until you have met the receiver, and that could be after Xmas anyway. One of our Scottish forum members may be able to confirm its the same.

Out of interest....how much is the debt? Seems extreme to bankrupt someone for what I assume is a modest CT debt.

If you are claiming benefits and have no other income (and no tangible assets), the impact will likely be minimal anyway other than issues applying for credit.

ScottishLad

Debt is sitting at around £7200.
Had an absolute nightmare with it.

CIS

The one question I always ask my clients is, do you think you owe the money ? The number of times I've seen council tax charges (even to bankruptcy applications) that are wrong is very high.

bradders1983

OP do you have any assets?

ScottishLad

Zero assets.
Rent our home + car on HP.

The main thing I'm concerned about is the 10th December date, I don't want to be left with all accounts etc frozen for Xmas.

Something mentioned was a 6 week continuation?
Any idea of that?

bradders1983

No idea, but what are they hoping to get from you if you have no assets?

Assuming it works the same way up there and you only have to pay what you can afford over 36 months, they aint getting their £7k back surely.

ScottishLad

I believe they want to bankrupt us so it can be wrote off their books essentially and re-cover anything they can via a DCO.

I've been in contact to try and arrange a payment plan, I understand the arrears are hefty, but I was under the impression that ANYTHING is better than NOTHING.

bradders1983

Given it is over 7k that must be a few years worth, so I can only assume that ship has sailed, previous arrangements havent been stuck to etc. Also remember its an ongoing debt, you may agree to pay £50 towards your CT but its £100 (as an example) a month, so its going to keep going up.

ScottishLad

I offered them 10% upfront + £400 a month going forward, our CT is around £230 per month, so £170 per month towards arrears.

Even offered to clear the legal fees as court date booked.

CIS

ScottishLad wrote: »

I offered them 10% upfront + £400 a month going forward, our CT is around £230 per month, so £170 per month towards arrears.

Even offered to clear the legal fees as court date booked.

As a former council tax recovery officer (before I set up by myself) my council would have taken that as a payment offer simply because nothing typically comes from bankruptcy with the cost and hassle of it (although being England we also had the power to apply for committal, if need be).