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Council Tax question for CIS please

I was made BR in October but continued to pay my CT for the financial year.
Should that bill have been wiped or is it common to continue to pay?
I am currently on Mat Leave so on reduced income. No council tax wouldn’t have left me with a surplus income as things are so tight anyway but would certainly have been helpful to towards expenditure.

Comments

  • System
    System Posts: 178,413 Community Admin
    10,000 Posts Photogenic Name Dropper
    The bill should have been wiped as the full bill is due in April however you would have to contact the council's CT department, notify them of the bankruptcy and stop the payments.
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Agree fully with the above - you need to contact the council tax department in question and advise them of when your bankruptcy went through so that they can update their records. The council tax charge for the whole year would form part of the bankruptcy balance.
    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.
  • 74mrjones
    74mrjones Posts: 16 Forumite
    Sorry to jump in. But what happens when you are married and living together but only have the bankrupts wage coming in ? Is the other person still liable ?
  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    74mrjones wrote: »
    Sorry to jump in. But what happens when you are married and living together but only have the bankrupts wage coming in ? Is the other person still liable ?

    Yes - if there is a jointly liable party they will be held responsible for payment.
    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.
  • joa1210
    joa1210 Posts: 73 Forumite
    Fourth Anniversary 10 Posts
    Thanks, I!!!8217;ve obviously paid the rest of the year as was unaware of this, can this be reclaimed?
    My council are being less than helpful saying that bankruptcy exemption only applies if your house has been repossessed
    Banging my head here
  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    joa1210 wrote: »
    Thanks, I!!!8217;ve obviously paid the rest of the year as was unaware of this, can this be reclaimed?
    My council are being less than helpful saying that bankruptcy exemption only applies if your house has been repossessed
    Banging my head here

    The council are correct in that a Class L exemption only applies for a repossession and a Class Q exemption only where the property has been taken in to the control of the trustee in bankruptcy - it doesn't look like either is the case here. Being bankrupt itself does not give rise to an exemption, the council tax balance remaining is just handled as a bankruptcy debt.

    If there were monies paid to the council before the bankruptcy you have little chance of recovering them as they would retain them and then write off the remaining balance in the bankruptcy. If the payments were made after the bankruptcy you need to have a word with whoever is managing the bankruptcy and see what they think as it raises various issues over debt repayment - it's unlikely you'd see the money as I'd expect that even if it could be refunded it would be used to distribute amongst the debts anyway.
    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.
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