Council Tax + Bailiffs. How to deal with this?

Corkz

Apologies If this ends up being long but there is considerable context and history here.

Background

2017 - I fell ill (cancer) and we had a new baby on the way. Pretty much ended in financial disaster.

For several years we just tried to get by but ended up in this weird debt cycling with the council. The process is this. Debt →liability order → trying to clear balances → new year’s liability starts → total becomes unaffordable → arrangement fails → cycle repeats.

All this time I had attempted to engage with the council explaining previous ill health and the my youngest was very vulnerable and it affected our ability to absorb financial pressure. I tried to make arrangements over and over but no budging from the council.

Fast forward to 2024 the Council sent the debt over to Bailiffs. I went back to council and asked them to recall it and allow me to make an arrangement that would prioritise current liability explaining household vulnerabilities and affordability. I received no response so put in a complaint. This was met with refusal to recall and this is a quote from that email (councils name redacted).

"******* Council do not offer bespoke services in regards to Council Tax"

At this point we were defeated and just entered in an arrangement with the Bailiffs which was unaffordable. We didn't miss a payment and got down to just owing 24/25 and this year's (down from nearly £9000). This came at a cost though as other priorities were put off.

More recently my wife pretty much had a breakdown due to years of stress. I took over all financials and dealing with anything so she could rest and focus on herself.

I then went back to council and once again asked to prioritise current liability and recall debt from enforcement. I also provided full financial statement. No response again so again I made a complaint. The response defaulted to the previous complaint response despite the current debt with enforcement not even having a liability order when that response was received. Also the council explicitly stated they would not offer an arrangement on 25/26 liability until they "secured" it with a liability order.

I contacted the council again and asked them to consider vulnerability and affordability and instruct the Bailiffs to accept a lower amount so I can prioritise current liability. I also contacted the Bailiffs and asked the same.

Council responds with "the enforcement agents are responsible for exercising discretion in regards to vulnerability and affordability and we see no need to intervene" they also added they will make an arrangement after liability order is granted and that there are costs associated with this.

The Bailiffs responds with "we are unable to accept reduced payments unless we receive instruction from the council"

So now I'm in this weird loop of nobody willing to make any kind of decision. Also stuck as to what to do with payments. If I agree to any sort of unaffordable payment with Bailiffs the cycle continues. If I pay the current liability installments enforcement pressure continues. I also have to consider upcoming liability in April.

A couple of other things to add.

Ombudsman complaint currently waiting to be assigned to investigator. Complaint is on the grounds of complaint handling and fettering of discretion.

Have contacted my local councillor but no response.

I have considered section 13 to see If I can have debt reduced but in the 2024 complaint response the council stated "being negligent is not a valid and will not be considered"

Enforcement pressure is minimal, no calls, emails or anyone turning up. I suspect a quiet "soft pause" while ombudsman case is ongoing.

We've worked very hard to get into a position where everything can get paid at a sustainable rate but structure is the most important thing right now.

Has anyone been through this kind of experience and if so how did you navigate the brick wall that is the Council?

Thank you for reading that wall off text!!

elsien

Do you have any other debts you are paying off or is it just the council tax?

Is there just the one councillor for your area, because if not, I would try another one or I’d turn up at one of their surgeries.

Andyjflet

Hi, I'm sorry you are going through such a horrible turn of events, and I hope you both recover. HMRC and Council Tax really are the big two after your 4 walls.

Many years ago I got myself into a mess financially, I went to court because I had left it too late. They were surprised to see me as they just usually process these for enforcement orders.

I had a paper spreadsheet with all my details, debts, income and my wife had also been in hospital for months whilst pregnant.

The judge was sympathetic and instructed the council to agree a fair arrangement with me.

The expectation is that CT debt is paid above most other things, have you any other debt you can default on and get this one paid, ultimately its not good news if you dont.

Have you also explored the 60 days breathing space regulation?

Corkz

Yes we have several other debts being paid off. Both priority and non priority. All have accepted. None priority bills currently being paid at £1 per month each. Priority bills get the lions share including 30% of disposable income to go towards historic council tax debt. Unfortunately just one local councillor in my area.

Corkz

https://forums.moneysavingexpert.com/discussion/comment/81873544#Comment_81873544

We had some HMRC debt and they have been absolute saints to be honest. They outright accepted what I offered as soon as I showed we could remain compliant going forward.

Brie

You say there is vulnerabilities. Are you able to go into some more detail? This might help us direct you better.

And as elsien asks - are there other debts?

If you could fill out a statement of accounts (SOA, see below in my signature) then we can get a better view of the overall situation. Things like what assets you have, whether you're renting or have a mortgage all affect what solutions might be available for you.

I suggest you read a bit of the DebtCamel website for potential solutions - Debt solutions - what is your best option?

But also have a look at what is there about "breathing space" - it sounds like you need some and this would potentially get everyone off your back at least for a little while. Breathing Space | What It Means and How to Apply for Debt Relief | National Debtline

RAS

With respect to your councillor check the Council website or your local library. Your local councillor will run a surgery somewhere within the ward boundary at least once a month.

Some ask for appointments, others it's walk in. If it's appointments, there will be contact details.

fatbelly

Unfortunately this sort of behaviour is typical of councils

Local councillors can be useful in applying pressure. For example whoever wrote that they do not provide bespoke solutions should be reminded that that is exactly what they are required to do and throwing multiple liability orders to bailiffs with all the associated. fees, is helping no-one. But if your councillor is useless…

Hopefully the Local Government Ombudsman will talk some sense to them.

I'm not a fan of Breathing Space as it just kicks the can 60 days down the road and leaves you in the same place.

I think with the history you have described I would look at the following options in turn

Can anyone in the household be classed as SMI?

Push ahead a S13A application- ask your council for their guidance document. If they don't have one then the Valuation Tribunal will insist they write one when it gets to that stage

Consider whether you fit the criteria for a DRO. If so, make the application around May 2026 when the whole 26/27 bill can go in.

II realise some of that may need unpacking so have subscribed to this thread.

Corkz

https://forums.moneysavingexpert.com/discussion/comment/81873568#Comment_81873568

My youngest is autistic and Wife's mental health is not great (awaiting referral to mental health team). We have 3 other children. The youngest situation is quite difficult and requires one of us to be here because she needs night care which is why we are both self employed.

Yes there are other debts and all are being managed through sustainable payment arrangements.

No real assets, we rent and live modestly, no expensive car or anything like that.

In regards to options, we attempted to enter an IVA in 2021 but it was refused by council who was largest debt. I suspect it would be the same if attempted again.

As of right now in general things are OK, all debts are being paid at a comfortable rate as all but the council agreed to reasonable arrangements. It's just the council that is the issue.

I feel like we're in the unusual position of having disposable income (approx £550 a month) but if payments aren't structured well it all falls apart. FYI council was offered £150 per month towards historic Debt as well as maintaining current installments. The rest of disposable income goes towards other priority debts + token payments of non priority debts.

ManyWays

What are the other priority debts?
4 children, are you getting universal credit? If you are this should be going up a lot in April with the removal of the 2 child limit?
Are you getting DLA for the autistic child?

Corkz

https://forums.moneysavingexpert.com/discussion/comment/81873674#Comment_81873674

Other priority debts are Rent, utilities, and HMRC. The hmrc get the majority, rent and utilities get get a small amount as debts aren't as big. It breaks down as approx 55% of disposable income to hmrc, 30% to council, rest split between others. All have been demonstrated to the Council.

Yes we get UC, doesn't quite cover our rent but that's fine.

Currently awaiting DLA award.