Bankruptcy hearing do I have to go bankrupt?

jimm24

I am scheduled for a Bankruptcy hearing at the start of July,due to unpaid council tax.
I am not in a position to pay the total amount(£3000 plus fees of £1000)but will be able to pay it back over the next year or so,the figure also includes the coming years council tax,so the back log is £2000,if it ends up going to court will I be forced into bankruptcy or will there be other options,the last thing I want to do is go bankrupt???

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jimm24

Anyone????????

Sammy_Girl

Hi Jimm

I'm afraid I don't know the answer, but more than happy to bump it up the board so someone more knowledgable may be able to help
Sammy x

QueenDebbie

Have you made a proposal to clear the debt within twelve months to the council yet?

The council may decide to withdraw the hearing if they feel you can clear the debt within 12 months.

If the bankruptcy hearing does go ahead though, even if you pay the debt in full, you may still be adjudged bankrupt if the judge feels that it's appropriate.

You really need to negotiate with the council's solicitors as soon as possible. If you are a homeowner (which I'm assuming you are if the council have issued bankruptcy proceedings) you could also consider offering a voluntary charge over your property in addition to making payments if they're not very willing to accept. You would need to speak to a solicitor about drawing that up.

Is bankruptcy an option you wouldn't want to take? Is there much equity in your property and do you have any other debts?

Edit: If there is only a little amount of equity in the property and you have other debts you could also point out to the council they are likely to recover less through bankruptcy than if you were to make payments to them.

geralddlp

Have you spoken to the council about it ? I would have thought that they don't want to take you to court either, if you contact them an offer an initial payment and suggest a monthly replayment that will get things into balance in a reasonable timescale, I would have thought that would be the most sensible way.

If they refuse this then take your plans to court, along with the money you can afford for a lump sum first payment and see if they will listen to reason,

good luck Gerald

jimm24

Thanks everyone will write to the council now,and chase them early next week.
Here's hoping they accept an offer????