Will I still have to pay Council Tax arrears if Bankrupt?
Council Tax arrears bankruptcy? Council tax arrears may generally be included in a bankruptcy, but there might be complications if a Liability Order has already been issued and an arrangement with Bailiffs has been made e.g. £150 x 6 payments.
Under these circumstances, you might be obliged to complete the arrangement despite having gone bankrupt and the Official Receiver might not intervene.
Its a fact that quite a high percentage of bankruptcy orders are granted from applications that are from local government in relation to council tax arrears bankruptcy.
People often don’t seem to realise that if they are a homeowner and they are about to be made bankrupt for a few thousand pounds worth of council tax then it is going to have a damaging and debt escalation to a level possibly never seen before that will appear unfair and will result in action to obtain an order of sale against the house
If you are a bankrupt homeowner because of a council tax debt then don’t delay ad simply call us today. If you have significant equity in your property and have been made bankrupt or are under threat of bankruptcy then you should get immediate help to save time and escalating costs.
It is therefore very important that you make an arrangement with your Council before they issue a Liability Order. A Liability Order is the seventh and final stage a Council will take to recover outstanding council tax. You would have had plenty of notice that trouble is coming and it can be avoided by simply offering a low, affordable amount.
Bankruptcy UK has been helping people with insolvency since 1998 and will guide you through the process step by step. We will avoid jargon and confirm all discussions by email within 30 minutes. Call us for a chat about your circumstances on 01425 600129.
Yes you can, but first we need to clarify exactly what a Liability Order is. This is the 7th and final stage that a council takes to recover Council Tax arrears and it is signed off by a Judge. Once this happens, court bailiffs will move to recover the arrears and if you thought normal bailiffs were bad, these are much worse. The likely outcome of their harrassment is an arrangement whereby the tenant pays so much per month to make up the shortfall. If you go bankrupt, the bailiffs may continue to collect the payments unless the Official Receiver intervenes. The best call when it comes to Council Tax arrears is to always make an arrangement before it gets to the final stage.
Bankruptcy UK offers a full bankruptcy administration service and will submit your bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for bankruptcy help on 01425 600129 or for an informal chat about your circumstances.
The short answer to this is ‘No’, the bankruptcy procedure does not result in Bailiff activity – period. In the lead up to the bankruptcy, you may be under threat, particularly if you ignore County Court Judgements or have a Liability Order for non-payment of Council Tax against you.
A Bailiff cannot enter your property unless you invite them in. Once you have invited them in or if they can gain unforced entry via an open door or window for example, they can return to court to obtain an order to enter with police and a locksmith. Try contacting the council or courts to set up a payment arrangement if you are really worried.
Feel free to call us on 01425 600129 with any other questions or for bankruptcy help. Questions may also be posted on our Home Page.
If you have received a liability order from the Council it could be tricky, as any monthly payment scheme set up by the Bailiffs prior to the bankruptcy generally has to be honoured for the year you are bankrupt and the Official Receiver rarely intervenes. However, if you are lucky, the Bailiffs will back off once the advice from the Insolvency Service is received – but don’t bet on it. The reason for this is the seriousness of non-payment of Council Tax.
Call us on 01425 600129 or 07479 739139 / 07894 481175 with any further bankruptcy questions or for bankruptcy help. Our advisers are not scripted and will gladly explain everything in easy to understand terms.
I have a warrant of execution threatening Bailiff action to remove goods from my house will bankruptcy stop it?
Yes it will, as Bailiff activity is reported on the online bankruptcy application and the Official Receiver will be aware if it. Even so, you would need to take immediate action, as there is a delay between submitting the case online and it being dealt with by the OR. A warrant of execution usually arises when a monthly payment for a County Court Judgement has been missed and County Court sheriffs visit for collection.
If the warrant was for unpaid Council Tax following the issue of a Liability order by the Council, there is some doubt as to whether even a bankruptcy would stop the action. Bailiffs collecting Council Tax arrears are often allowed to continue collecting monthly payments during the 12 month bankruptcy period. However, we will do what we can to help with this.
Bankruptcy UK offers bankruptcy help across the board and will submit your application online. Court appearances for bankruptcy are no longer required. Feel free to call us on 01425 600129 for a chat about your circumstances.