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.
Bankruptcy in itself does not result in Bailiff activity and you certainly won’t have any furniture or personal possessions removed, but there are two other factors that might affect bailiff activity. The first is if you have ignored the terms of a County Court Judgement i.e. you haven’t honoured the monthly payments and the creditor has taken action; the second is if you have a Liability Order for non payment of council tax. Bailiffs can only ‘force entry’ for certain commercial collections, but not for household collections.
If you are considering bankruptcy, we will help you throughout the process and submit your application online. Court appearances for bankruptcy are no longer required. Feel free to call us for a chat or for bankruptcy help on 01425 600129.
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.
Yes you can, but if the Bailiffs pursuing the debt have already made can arrangement with you, you might be obliged to honour that arrangement e.g. £150 per month, for the 12 months that you are bankrupt. Just so our readers understand, a Liability Order occurs when the Council has given up on trying to recover council tax arrears from a tenant and approaches the court to intervene. This invariably results in vigorous Bailiff activity – the worst kind as non-payment of Council Tax is a criminal matter. If you are lucky, you might have a Bailiff who gives up once you have gone bankrupt, but don’t bet on it. The Official Receiver might not interefere with such arrangements unless there is a clear possibility of setting up an income payments agreement.
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.