Council Tax liability under BR

Unremarkable

CIS said:

The council tax charge debt due at any point in time, for billing purposes, is the gross charge less any discounts or council tax support (the 'chargable amount') .
Where council tax support is removed it creates a new debt that wasn't due previously for council tax purposes, the only debt that ever exists is the 'chargeable amount' and this only exists as far as the next council tax adjustment is made to an account.

At the time of the bankuprtcy it wasn't part of the 'chargeable amount# and so couldn't be part of the bankruptcy as it wasn't a debt. It's a new debt generated post bankruptcy in the same way as any other retrospective adjustment that creats a new debt.

It's not a question of liability, it's a question of a 'chargeable amount' being due and when.

So we do owe it?

Fighter1986

None of us here are professionals; we can only give our opinion and our interpretation of the rules and law.

You've paid the court £680 for an Official Receiver to take care of things like this for you - send him the new invoice and see what he does with it. 

luvchocolate

CIS does work in this field 

Minkym00

You don't owe it. Fighter is right in that this is for your OR to deal with. They can write to the council for you. 

phillw

CIS said:

Where council tax support is removed it creates a new debt that wasn't due previously for council tax purposes, the only debt that ever exists is the 'chargeable amount' and this only exists as far as the next council tax adjustment is made to an account.

As the council is responsible for making the adjustment then it would seem like a large loophole as they could make sure no debt is ever written off.

CIS

phillw said:

CIS said:

Where council tax support is removed it creates a new debt that wasn't due previously for council tax purposes, the only debt that ever exists is the 'chargeable amount' and this only exists as far as the next council tax adjustment is made to an account.

As the council is responsible for making the adjustment then it would seem like a large loophole as they could make sure no debt is ever written off.

If you think a council has will to sit on changes just in case there's a bankruptcy then you've not worked in a council tax department, there's not the time, will, or staff to identify cases and try to then hold them.

There may be an argument that there's a contingent liability in the potential future change to benefits adjusting the council tax charge but that's a technical argument that would rely on case law. In real terms many councils simply write off any debt, regardless, if it falls in to a bankruptcy period because there's no real point in arguing it.

Unremarkable

Update: I queried the bill with my council and forwarded the section from the Insolvency manual and they agreed they should not be charging and apologised, and said they will ensure the same does not happen again!
Thank you for your help all x

luvchocolate

Brilliant result..well done 

Fighter1986

Unremarkable said:

Update: I queried the bill with my council and forwarded the section from the Insolvency manual and they agreed they should not be charging and apologised, and said they will ensure the same does not happen again!
Thank you for your help all x

Great news, glad to hear it