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Council bankruptcies and debt

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DrDeejUK
DrDeejUK Posts: 33 Forumite
Fifth Anniversary 10 Posts
I'm trying to find out some information about what happens when a council is dissolved and a new authority is created and what happens to the debt. So, for example, when a member of the public has a debt with the old council i.e council tax, parking fine, care package - whatever really, what happens to that debt? How much of the debt is written off and what can be chased up by the new authority? Thanks. 

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  • marcia_
    marcia_ Posts: 3,451 Forumite
    Sixth Anniversary 1,000 Posts Photogenic Name Dropper
    DrDeejUK said:
    I'm trying to find out some information about what happens when a council is dissolved and a new authority is created and what happens to the debt. So, for example, when a member of the public has a debt with the old council i.e council tax, parking fine, care package - whatever really, what happens to that debt? How much of the debt is written off and what can be chased up by the new authority? Thanks. 
      Why would it be written off? It will be passed to the new authority and still repayable especially as seeing the council only went bankrupt from poor spending and not collecting debts 
  • sourcrates
    sourcrates Posts: 31,631 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    All debts will remain valid and collectable, they do not just "go away" .

    The new authority retains all rights and privileges of the old one.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
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