Couple of questions..

limdylou29

I am on universal credit at the moment. And I’m trying to get my head around this SOA. My 2 sons (19)contribute to the home. One son has an apprenticeship and the other is claiming UC. 

So I pay all the bills and do the shopping etc. The council tax bill is in my name, I don’t get full ctax benefit due to my sons. Was wondering how this would work regarding the CTax bill and Bankruptcy. I also have there contracts in my name for there mobiles which end in august I believe, I pay them out of the funds they give me. I also have a contract at £25 and there’s are £15 each. Would I be able to see these out and then put them into there names in august? Also I believe a UC Advance would be wiped with bankruptcy.
My UC and sons contributions leave me in a minus monthly. Because things like hair, dentist, clothes and saving I do not do right now. So any money that I would gain through the UC advance would this go towards the minus I would be showing? 

I’m also in some rent arrears (council) which would Also go with bankruptcy. On the SOA would I still show payment towards the rent arrears as well as rent?
hope this makes sense.

mwarby

Contracts in your name would fall under your bankruptcy. Your sons would be expected to pay thier fair share of bills(including food) either split into 3 equally, or by income;the more you earn the bigger the share. If they are unwilling to share income details it’s be split equally.

im not sure about council tax, I think everyone is joint and severally liable, meaning your sons would be liable

with rent arrears it would depend on the tenancy, I would imagine your sons are joint tenants so would not be liable, this distinction maybe true for council tax too

fatbelly

Are they joint tenants? Or is the tenancy in your name?

limdylou29

fatbelly said:

Are they joint tenants? Or is the tenancy in your name?

We have lived here since they were babies, tenancy is in my name. UC does not take them into consideration until there 21. So I get a majority of my rent paid by UC now and I pay an amount not covered by UC. The council tax is different. I don’t even understand the bill they have sent. It’s based on our individual circumstances and incomes.

fatbelly

Council tax is based on a hierarchy of liabilities: 

• A resident freeholder (so for owner-occupied property the owner is liable)
• A resident leaseholder (this includes assured tenants under the housing act 1988)
• A resident tenant
• A resident licensee
• A resident
• The owner (this applies where the dwelling has no residents)

As you are the resident tenant the liability falls on you.  Your sons are not liable. But if you moved out, your sons (as resident non-tenants would then be liable.

Insolvency makes no difference to the hierarchy

limdylou29

fatbelly said:

Council tax is based on a hierarchy of liabilities: 

• A resident freeholder (so for owner-occupied property the owner is liable)
• A resident leaseholder (this includes assured tenants under the housing act 1988)
• A resident tenant
• A resident licensee
• A resident
• The owner (this applies where the dwelling has no residents)

As you are the resident tenant the liability falls on you.  Your sons are not liable. But if you moved out, your sons (as resident non-tenants would then be liable.

Insolvency makes no difference to the hierarchy

Ok so on the ctax bill It says, non dependent deductions. The son that’s working is higher than the son that’s not working. If I lived alone my CTax would be a lot less. On my SOA would I show that I’m liable for the whole bill?
im finding this confusing.

limdylou29

My CTax is due today, do I still pay it?

fatbelly

limdylou29 said:

Ok so on the ctax bill It says, non dependent deductions. The son that’s working is higher than the son that’s not working. If I lived alone my CTax would be a lot less. On my SOA would I show that I’m liable for the whole bill?
im finding this confusing.

There's no non-dependent adjustment in council tax - you just don't get a single adult discount.

I suspect you are looking at a calculation for council tax support.

Absolutely true - if you lived alone your net bill for council tax would be a lot less.

Your soa should show the reality of  what your present net bill is.

If you're going to declare bankruptcy in the next couple of months there's no point paying your council tax - and you have to save your £680 somehow.

limdylou29

fatbelly said:

limdylou29 said:

Ok so on the ctax bill It says, non dependent deductions. The son that’s working is higher than the son that’s not working. If I lived alone my CTax would be a lot less. On my SOA would I show that I’m liable for the whole bill?
im finding this confusing.

There's no non-dependent adjustment in council tax - you just don't get a single adult discount.

I suspect you are looking at a calculation for council tax support.

Absolutely true - if you lived alone your net bill for council tax would be a lot less.

Your soa should show the reality of  what your present net bill is.

If you're going to declare bankruptcy in the next couple of months there's no point paying your council tax - and you have to save your £680 somehow.

I’m probably sounding really silly!
i have applied for council tax support, and do not receive the support I would have got if I lived alone. So the bill is not far off the whole sum for the year. So I list the bill as a debt, and on my SOA do the monthly payments not split between us.
i am aiming to go ahead in a week or 2 once I’ve received my universal credit for this month. 

limdylou29

I have now transferred my sons phones into there names also. 

fatbelly

limdylou29 said:

I’m probably sounding really silly!
i have applied for council tax support, and do not receive the support I would have got if I lived alone. So the bill is not far off the whole sum for the year. So I list the bill as a debt, and on my SOA do the monthly payments not split between us.
i am aiming to go ahead in a week or 2 once I’ve received my universal credit for this month. 

You have it correct. List the whole bill as a  debt and the whole monthly sum as an outgoing. But you won't be paying council tax for the rest of the tax year in practice once you are bankrupt.