Bankruptcy

He is certainly taking extreme measures to register his protest against the council, but unfortunately it is the council that has the upper hand in that they have the means and procedures to collect - in this case bankruptcy.
I suppose he can state his reasons for non-payment to the judge, but I imagine that this has already gone through normal collection procedures and the judge will be primarily concerned with whether the council have acted properly in regard to the collection of this money.
If declared bankrupt, then the OR will control all of his assetts and will appoint a trustee to realise enough funds, from the assetts, to pay the 'debt in bankruptcy'. My guess is that the OR will choose the quickest and easiest of his assetts to realise, inthis case, probably, the liquid assetts.
Providing that these assetts are sufficient to cover the debt, plus costs of bankruptcy, then either the bankruptcy will be annulled and the balance of the 'estate in bankruptcy' will be returned to your relative forthwith, or will be returned on completion of the bankruptcy period.
Just one word of caution, from someone recently declared bankrupt:
The OR is very unlikely to get the best market price when realising assetts, and there are also fixed charges associated with bankruptcy, Court costs and Insolvency Service costs, which could be in excess of £3k. This is on top of the other implications regarding bank accounts, credit etc.
I respect your relative's right to protest against the council, but he should see that, whilst it may get a bit of publicity, this will be like water off of a duck's back to the council, yet could have very long term implications for him.
Is there no other way that he can make his protest about the council's alleged neglect?

Ann_Reed wrote:

Thanks very much rog2. It is a difficult situation for me to deal with directly as I live in New Zealand.

I see your problem - is there no other relative in the UK, who can take control of the situation?

Ann_Reed wrote:

No there is no other relative in the UK. I am thinking about contacting the council and pay the debt for him. Upon his death the inheritance will come to me and my 2 brothers that also live in NZ. I will be travelling to the UK at that time to sell the property. I feel it would be best for me to settle his debt of 3500 pounds with the council to protect all parties involved.

It is difficult to give specific advice without knowing the full circumstances - age, health and general mental state of your relative. Certainly, in my opinion, if the debt is only £3500, then that is not worth him risking bankruptcy over - and it is going to cost one hell of a lot more, along with the risk of losing the house/your inheritance.
I think your suggestion is probably the best idea, but do you know someone, in the UK, who can also keep an eye on him for the next couple of years until you come accross and can assess the situation?