Bankrupcy covering council tax arrears?

kayxx

A male friend of mine recently declared himself bankrupt, however since doing so he has now been told that his council tax arrears are not covered by the bankrupcy. He is now back to bailiffs knocking on his door and depression is well and truly setting in. Is this right?. If it helps he is in the Birmingham area. He was told that what is covered by the bankrupcy varies from region to region and is decided on by the council.

Can you advise?

Many thanks

Kayxx

tigerfeet2006

Council tax up to the date of bankruptcy is included in the BR.

Here we go.
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 URL="http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch37-48/chapter40/part6/Notes/Notes.htm#1"][U][COLOR=#800080]note 1[/COLOR][/U][/URL but the liability to pay council tax is determined on a daily basis URL="http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch37-48/chapter40/part6/Notes/Notes.htm#2"][U][COLOR=#800080]note 2[/COLOR][/U][/URL. 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 URL="http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch37-48/chapter40/part6/Notes/Notes.htm#3"][U][COLOR=#800080]note 3[/COLOR][/U][/URL. Any amount due and unpaid under the instalment agreement prior to the insolvency order is an unsecured debt in the proceedings /COLOR][URL="http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch37-48/chapter40/part6/Notes/Notes.htm#4"][U][COLOR=red]note 4[/COLOR][/U][/URL. If the bankrupt's council tax is up to date under the installment agreement at the date of the bankruptcy order no amount is provable in the bankruptcy as it relates to future occupation of the dwelling.

Councils quite often think they are above the law but they are not.

Get your friend to send everything to the OR for him to deal with. Also get him to prepare a letter with all his BR details on ie: Number xx of 2008 at blah blah court. OR's name, address and phone number and maybe a copy of the BR order. If anyone comes calling tell him to open an upstairs window and tell them they are breaking the law harrasing a BR and chuck the letter at them.

Got2change

Looks as though tigerfeet is on the case - but just to add that my CT arrears were included in my (today) BR. Had the b's come last week and my car was "seized" but phone call to Council today means they will be called off and now no arrears. Hope this reasssures. Not sure how wise it is to tell b's about impending BR, maybe someone else can advise (I only told them because it was imminent and before the 5 day notice on my car).
Good luck

wobblebottom

Hiya TF, thanks for the info, I have spent the best part of 30 mins on the telephone on hold to some incompetant twerp today at local ct office asking why the arrears were still showing on my bill for this year! guess what....... she never came back to the phone... I gave up.

Ive got a £1315.57 debt showing still eeekkkkkkkkk! - I have just fired off a rather snotty email to them using the info you provided, so cheers flower.. and Im going to give OR a nudge tommorrow to get it chased up.

Thanks Hun.

kayxx

Thank you so much for the replies. I phoned my friend and passed on the advice, but he is adamant that both the council and the court have insisted the arrears stand. Apparantly bailliffs have already been and they have said the same. No goods have been removed from his property and won't be unless he falters on the new repayment agreement. Personaly I'm still not sure about all this, I can only pass on what he is telling me.

Many Thanks again
Kayxx

tigerfeet2006

Kay I have pm'd one of the more experianced members to have a look at your thread.

But as you can see from the highlighted text it should be included unless there has been a change recently and they haven't updated the infomation.

debt_doctor

Hi,

to say that council tax arrears vary from region to region is not true.


Bankruptcy writes off council tax arrears ncluding the current year if a final demand or liability order is issued. Make your OR do his job, ring the local insolvency service and make a complaint if neccesary.

Best

DD

Thanks Tigerfeet !

TaxAvoider

That is disgusting of your council, I would complain strongly :mad:

It is definitely included as many have said.

My local council sent me a new book for this year, there is a "code" in there , something like "IN BKR" but no sign of last year's debt.

They did however fail to include the 25% discount, but that will hopefully get sorted out. For the first time in many years, I have made the first payment already, well in time for the 1st April :j

It feels good just to have one debt to the OR and I am nearly half way through my BR. I hope to be able to pay the CT on time every month this year. However I am not going to take up their suggestion of Direct Debit , they are the "curse of the devil" I really have a "thing" about them now :mad:

dingdangdo_2

Sure you have got this sorted now but just thought I could offer advice. I worked in council tax for a few years and it is included in your bankruptcy. Basically I used to receive direct notification from the Insolvency Service (as all creditors do after BR) and your account is ended with effect from the date of BR then a new liabilty / account is set up from the next day. Any debt left on the old account is not collected, if its with bailiffs the council tax office will advise them not to pursue case.

dingdangdo_2

kayxx wrote: »

Thank you so much for the replies. I phoned my friend and passed on the advice, but he is adamant that both the council and the court have insisted the arrears stand. Apparantly bailliffs have already been and they have said the same. No goods have been removed from his property and won't be unless he falters on the new repayment agreement. Personaly I'm still not sure about all this, I can only pass on what he is telling me.

Many Thanks again
Kayxx

The only thing I can think of here is that the bailiffs already have 'walk in possession' which means they can continue. I seem to remember having an argument with my boss about this as it seemed ridiculous that the bailiffs had to stop if it was before this point but could continue after this point.. In the end we stopped the bailiffs proceeding because it all seemed a bit dodgy on the bailiffs side. Problem you will face is that councils don't like to take the debt back as they are then charged by the bailiffs for doing this. So it may be worth giving the bailiffs copies of your BR order and refuse to let them in your house! My experience of bailiffs is that they tend to give up if it gets too difficult and then they send the case back to the council. Everyone is then happy as council have no fee's and don't pursue and debtor gets no more hassle. We used Bristow and Sutor, they back off fairly easily from my memory.

chelseadagger_3

Have just read through the thread, just wondered if anyone had any thoughts on the following..

My OH is due to go BR on the 9th april, he is actually using an Insolvency Firm, they have informed him that he cannot actually include his council tax arrears, anyone have any ideas why this would be?