Bankruptcy And Council Tax Arrears

skibadee

I'm considering bankruptcy and would like to know if you are allowed to bankrupt council tax arrears too?

debt_doctor

Yes council tax arrears go in to BR including the current year if a final bill or liability order has been issued

DD

skibadee

does that include if baliffs have been involved?

debt_doctor

Yes it does

DD

Swingle

debt_doctor wrote: »

Yes council tax arrears go in to BR including the current year if a final bill or liability order has been issued

DD

Could someone post the actual regulation number or a link where I might find this info. I need to quote it to my local authority.......quickly.

Thanks

fermi

http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch37-48/chapter40/part6/part6.htm

40.101 Council Tax

Each District Borough Council levies and collects a tax, called a council tax which is payable in respect of dwellings in its area. The occupiers of the dwellings have joint and several liability for council tax.

Council tax is charged on a yearly basis from 1 April each year [Note 3] but the liability to pay council tax is determined on a daily basis [Note 4]. The billing authority is required to make a demand for payment of the council tax separate to the notification of the amount of council tax and the tax becomes due when that demand is made but most council tax payers agree a statutory monthly payment scheme for payment of council tax [Note 5].

Any amount due and unpaid under the instalment agreement prior to the insolvency order is an unsecured debt in the proceedings [Note 6]. If the bankrupt's council tax is up to date under the instalment agreement at the date of the bankruptcy order, no amount is provable in the bankruptcy as it relates to future occupation of the dwelling.

Where a liability order has been obtained by the council, prior to the bankruptcy order being made the whole debt as notified within the liability order becomes due and it is therefore a provable debt as defined in paragraph 40.12.

CIS

What notices have you received from the local authority with regards to the Council Tax due ?

hallowitch

Insolvency 49

(1) Where a liability order has been made and the debtor against whom it was made is an individual, the amount due shall be deemed to be a debt for the purposes of section 267 of the Insolvency Act 1986(1) (grounds of creditor’s petition).
(2) Where a liability order has been made and the debtor against whom it was made is a company, the amount due shall be deemed to be a debt for the purposes of section 122(1)(f) (winding up of companies by the court) or, as the case may be, section 221(5)(b) (winding up of unregistered companies) of that Act.
(3) For the purposes of this regulation the amount due is an amount equal to any outstanding sum which is or forms part of the amount in respect of which the liability order was made.
http://www.legislation.gov.uk/uksi/1992/613/contents/made

royoftherovers9

I am currently being hounded by my local authority in Scotland (Angus). I have £7000 arrears, however over the last 12 months I have been paying Huttons £100 month, and the last 4 months £200 monthly. I have now started paying the Council their monthly dues of £180, so cancelled the DD with Huttons. They phoned me today saying Angus Council want to make an example of home-owners by making them bankrupt to pay arrears off. I told them I was now paying the council £180 and could afford £50 to them also (£230 in total). They refused and said Council would want more, and would need to see bank statements etc. He then said the Council would want 1/3 up front e.g. £2000 odd pounds. He suggested I get a loan. I told him I was blackl;isted, and he said I would need to prove that too. So he is saying the Council is advocating people borrowing money, getting into more debt to pay arrears !!!!! That's clever. I'm in the crap for being a fool with money already, I don't need to go and do that again. I have recently got my mortgage up to date. Where do I stand with these fools? I told him I was at least offering something. Seems to me if you own your home they will look to hammer you. If you don't and enjoy methadone, you're safe !!

HOLIDAYMAD_2

Well i spoke with the OR and the OR helpline and CAB re arrears on a liaiblity order and all said they are not auto in the BR pot , the baliff can still legally collect and enforce but only with liability orders.
if there is no liability then they are in the BR pot is my understanding.

i said previously its very muddy waters

Then ive been told if a liability order has not been repaid in the 12 months following the BR it is then removed.

HOLIDAYMAD_2

hallowitch wrote: »

Insolvency 49

(1) Where a liability order has been made and the debtor against whom it was made is an individual, the amount due shall be deemed to be a debt for the purposes of section 267 of the Insolvency Act 1986(1) (grounds of creditor’s petition). its states creditors , and that is when someone makes us BR not us making our BR and that is the muddy waters imo
(2) Where a liability order has been made and the debtor against whom it was made is a company, the amount due shall be deemed to be a debt for the purposes of section 122(1)(f) (winding up of companies by the court) or, as the case may be, section 221(5)(b) (winding up of unregistered companies) of that Act.
(3) For the purposes of this regulation the amount due is an amount equal to any outstanding sum which is or forms part of the amount in respect of which the liability order was made.
http://www.legislation.gov.uk/uksi/1992/613/contents/made

to the last poster Scottish law differs to English and Welsh law a lot inc benefits and various regulations.