IVA and Council Tax

curtos

I have no idea where to start, me and my fiancé moved in our first new house just before COVID first hit and due to COVID she lost her job and has struggled since to get one (currently she is only working part time as she cannot find a full time job which she doesn't have to drive to) I had some previous debt and then struggled to pay it back due to paying for the house on my own etc so ended up getting a IVA to help with it all. Due to the house being a new build they had not evaluated the properties band meaning we were not paying council tax and due to COVID it was a few months later that they sent someone to evaluate the property. So from day one of getting our council tax bill we were already in debt and struggled to pay it. They have started chasing us for payments of £1300+ which we cannot afford to pay, so I have spoken with the IVA people who have added the debt of this to the IVA. But the letters kept coming. They have sent a final notice today and after my fiancé has spoken with them they said they are not chasing me anymore but are chasing her for the full amount, which she can not pay (she currently only earns around £400-500 a month and a lot of this helps towards bills) she has tried previously to try and get help with the council tax or for universal credit, She has also tried for credit cards or a loan but it always comes back to me, either due to my earnings they cannot give help or due to my IVA she can't get a loan or credit card. It seems really unfair how they cannot help her because of my Iva but then they also go after her because she is not named on the IVA. It makes no sense... Also all the letters are still addressed to both of us and not 1 time until today have they said they are going after only her. 

I know I have read online they can only chase her for the amount that would not be covered by my Iva but they have ignored this and are asking for the full amount 

Any advise anyone could give would be extremely helpful

sourcrates

It may sound obvious but the person that is living in a property will be responsible for paying council tax. They will be called the 'liable person'. If however you are living in a property as a couple and are married, cohabiting or are in a civil partnership then you will be both responsible for payment of Council tax. 

The situation becomes slightly more complicated where there are more people living in one property. In these situations there is a ranking of who will be responsible for payment of Council tax, known as the hierarchy of liability. 

The hierarchy for payment of Council tax is as follows:

1. The owner-occupier of the property;
2. A tenant who is living in the property;
3. A resident who lives in the property but is a licensee – this is someone that is not technically a tenant but does have persmission to live in the property;
4. Any person living in the property – at this point, where a squatter is living in the property, they will be deemed liable for any outstanding Council tax; and
5. The owner of a property where no one is currently living.

You may no longer be liable for the CT, but she will be.

fatbelly

It sounds like the council were a bit slow in getting the 21/22 bill to both of you but this seems completely legally correct to me.

@CIS is our council tax expert.

Unless your partner can get some council tax support, she will be liable for this sum, in full, which is a priority debt.

Moving priority to non-priority (loan, credit card) is a recognised strategy but you are correct that she is linked to you through the joint mortgage and you are insolvent, so she will struggle.

If she has other debts she should take her own advice. She could perhaps consider a s13a request on the council tax

https://debtcamel.co.uk/section-13a-council-tax-write-off/

CIS

In respect of this balance - if you're joint owners or tenants, then you both remain jointly liable for the purposes of council tax but with the caveat that enforcement for any balances covered by the IVA can only be taken against your fiancé.

The delay in the banding doesn't make any real difference in respect of collection and enforcement as the council tax system doesn't differentiate in situations, it just drops in to the normal system of instalments.

Most councils will not look at longer term arrangements unless & until they obtain the liability order. This allows them to enforce on the debt if it's not paid, whilst also allowing it to be spread out further. It's certainly worth asking the council what arrangement they would be willing to offer under the protection of the liability order.

By way of an example, if they used an attachment of earnings, on £500 per month it would be 3% that could be deducted.

clare006676

I paid a housing benefit overpayment off which was included in my IVA and today iv had an attachment of earnings which was put in place by my local council. I had no letters stating this was going to happen. Iv completed my IVA which I paid over 6 years so this dept couk dbe added. They have left me short over Christmas 

fatbelly

clare006676 said:

I paid a housing benefit overpayment off which was included in my IVA and today iv had an attachment of earnings which was put in place by my local council. I had no letters stating this was going to happen. Iv completed my IVA which I paid over 6 years so this dept couk dbe added. They have left me short over Christmas 

If the debt was in your IVA, Then no it cannot be collected separately