New Post Advanced Search

Rossendales and BR

edited 30 November -1 at 1:00AM in Bankruptcy & Living With It
5 replies 1.1K views
lian332lian332 Forumite
10 posts
MoneySaving Newbie
edited 30 November -1 at 1:00AM in Bankruptcy & Living With It
Hi,

I've just today completed and submitted (paid) for my BR application and after being pestered by Rossendales regarding an outstanding council tax debt, they have informed my that my application changes nothing, I still owe and even today, are required to set up a repayment plan.

This totally goes against what I've read / been told regarding BR, i.e. I should not pay any of my creditors, i.e. make a preference and once my application has been paid / submitted / accepted, they can bother me no longer.

It is however, a joint debt (my ex partner), so I assumed them to report back to the council involved and then they started new proceedings to reclaim the debt from her.

I thought I'd ring step change regarding this, and in a nut shell, they told me, Rossendales are entitled to proceed with all attempts at debt recovery, toward me, right up and till I'm discharged from BR.

I'm like !!!!!!? I've been waiting for the right time, right monies and circumstance to do this and now I'm in a lodging style accomodation, if I get nasty visits from Rossendales, the land lady is likely gonna ask me to leave, which will find me homeless.

Please tell me this cannot me right?

Thanks

L

Replies

  • SarahDoeSarahDoe Forumite
    39 posts
    Correct me if I am wrong.

    I believe from the moment you get an email stating that you were made bankrupt Rossendales will no longer be able to chase you. And that email comes very quickly. Mine arrived the following day.

    But they most likely will chase your ex.
  • lian332lian332 Forumite
    10 posts
    MoneySaving Newbie
    You could be right, but at this stage, all I have is a reference and form stating my request for BR.

    But I'm hoping the acceptance will come soon.

    Yes, I do expect them to chase my ex for it, but not sure if they'll need to go for a new liability order, as I believe, only 1 person at a time can be held liable?
  • edited 18 June 2019 at 4:28PM
    CISCIS Forumite
    11.8K posts
    Part of the Furniture 10,000 Posts
    ✭✭✭✭✭
    edited 18 June 2019 at 4:28PM
    Yes, I do expect them to chase my ex for it, but not sure if they'll need to go for a new liability order, as I believe, only 1 person at a time can be held liable?
    I would assume she was originally liable with you and so, unless there was an issue at that time, the council would have obtained a liability order against her at the same time. It is only enforcement after a liability order that can only be undertaken against a party at any one time (if, for example, five people are liable then 5 liability orders would be granted but only one could be subject to enforcement at any one time).
    It is however, a joint debt (my ex partner), so I assumed them to report back to the council involved and then they started new proceedings to reclaim the debt from her.

    I thought I'd ring step change regarding this, and in a nut shell, they told me, Rossendales are entitled to proceed with all attempts at debt recovery, toward me, right up and till I'm discharged from BR.
    Council Tax enforcement in bankruptcy is a strange situation but they are correct.

    If an enforcement agent has already been instructed before bankruptcy then they can, depending on the specific situation, continue enforcement up the point of discharge. This section of the insolvency manual covers the situation.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
  • lian332lian332 Forumite
    10 posts
    MoneySaving Newbie
    Ok, thought I'd post with an update after getting weak / conflicting information (from many, many official sources) regarding this dilemma.

    I contacted my local council and explained the situation. They put a 30 day hold on proceedings, essentially telling rossendales to stop whilst my BR is approved.

    Assuming it all goes through, the debt (less any charges applied by rossendales - currently £375), will be passed back to the council, and they will then look to recover the outstanding (in a humane fashion) from my ex.

    Which essentially, reduces that liability from £12xx to more like £800, win! :)
  • CISCIS Forumite
    11.8K posts
    Part of the Furniture 10,000 Posts
    ✭✭✭✭✭
    Assuming it all goes through, the debt (less any charges applied by rossendales - currently £375), will be passed back to the council, and they will then look to recover the outstanding (in a humane fashion) from my ex.
    Most councils will do that, they don't like the hassle of chasing a person through bankruptcy where they can chase another party.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
Sign In or Register to comment.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support