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Council Tax
Flora_McDora
Posts: 39 Forumite
Afternoon - I'm just about to file for bankruptcy and am trying desperately to sort out my muddle of debts.
I have a Council Tax bill for approx £1750 for 2020-21. This is made up of £750 arrears from last year and this years tax ( I have 25% discount).
Can I include the total in my bankruptcy or just the arrears? Obviously, if I can, I don't need to put my monthly Council Tax direct debit on my SOA.
What will happen when I receive my Council Tax bill for 2021-22?
Many thanks
Flora x
I have a Council Tax bill for approx £1750 for 2020-21. This is made up of £750 arrears from last year and this years tax ( I have 25% discount).
Can I include the total in my bankruptcy or just the arrears? Obviously, if I can, I don't need to put my monthly Council Tax direct debit on my SOA.
What will happen when I receive my Council Tax bill for 2021-22?
Many thanks
Flora x
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Comments
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All council tax debts from previous years are included in bankruptcy, whether or not the council has issued a summons for them.
There was a court decision in December 2013 which implies that all council tax for the current year should be included in bankruptcy.
I work within the voluntary sector, supporting vulnerable people to rebuild their lives.
I love my job
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The arrears and the current year can be included in the bankrupt however if there was/is another person who is jointly liable all it does is make the debt unenforceable against you and they remain liable.
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.0 -
Thank you - that helps a lot
Flora x0 -
If you are no longer paying Council
Tax this year then the funds will he claimed by the OR on a IPA. So you need to include it on your SOA.0 -
Sorry but I'm a little confused. Do you mean that I should include my Council Tax bill (inc arrears) in my list of debts and then I will not need to put Council Tax monthly payments on my SOA or should I still put Council Tax monthly payments on my SOA?Minkym00 said:If you are no longer paying Council
Tax this year then the funds will he claimed by the OR on a IPA. So you need to include it on your SOA.
Thanks Flora x
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Yes, include the council tax (current and arrears) on your list of debts. And yes, include the sum you are paying in council tax on your outgoings. It is this sum that will be claimed for the remainder of the year.1
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Sorry but I really can't get my head around this - what do you mean that this is the 'sum that will be claimed for the remainder of the year'? Surely if it is classed as a debt, I won't have to pay it?Minkym00 said:Yes, include the council tax (current and arrears) on your list of debts. And yes, include the sum you are paying in council tax on your outgoings. It is this sum that will be claimed for the remainder of the year.
I'm really confused ;(
Thanks
Flora x0 -
The OR will setup an IPA for the rest of the year to recover the money you would have paid out in council tax. Possibly if you have a large deficit (expenses more than income) you'd be able to avoid this
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What will happen next April when I get the new Council Tax bill as I won’t have any spare money to pay it.
Thanks
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By next April that IPA will have come to an end, so you use that money to pay the council tax
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