To apply for bankruptcy for historical council tax debt

[Missesmop]

I have a substantial historical council tax debt from a previous local authority, stemming from a period of time I was in an abusive relationship and deemed a vulnerable person. 2012-2016.

With the help of the police I relocated 200 miles away and have began a new life with my young DC, but the debt still exists in the background and I'm aware bailiffs are involved, I think two separate companies. They haven't got my current address but I don't want to brush this under the carpet anymore, I want it dealt with before it is suggested they send me to prison. I have nobody who could have the DC If that were to happen, so prison would ruin our lives.

WIBU to apply for bankruptcy on these grounds and if I do, is the debt wiped?

I appreciate there's an amount of distain for people who don't pay their CT but without wanting to talk too much about my circumstances then, I had no access to money whatsoever.

Howuch is it in total? Maybe they would allow for payment plan under your circumstances which can be confirmed by the police?

I had this with my current partner.

We contacted the LA involved explaining the situation and the abuse. They took the debt back and allowed a low weekly payment.

Maybe try contacting the LA involved, explain the situation and see what they say.

To be completely honest I have no idea how much the total amount is as I wrongfully buried my head in the sand and threw away the paperwork. I was a mess when I left and prioritised building security where I now live, above sorting out the problem.

Before I relocated I was receiving letters with varied amounts on, from different addresses where we'd lived. We moved around alot due to his lifestyle and on more than one occasion tennancies were in my name only, as he tried to stay under the radar.

Women's aid and the police in that area are aware of the history and I was in refuge for a period of time. I explained all of this to one of the bailiff companies over the telephone and although they were sympathetic they said I'm still liable. They gave me a Grace period of one year as I was pregnant at the time, but do want payment.

I relocated mid 2016 with the help of a police liaison officer after a DVPO was granted by the court and I've had no contact with him, or that local authority since.

I suspect the total amount is in the thousands and I just don't have any savings at the moment.

Not sure the council would be happy to arrange a payment plan as they've sold the debt to collection companies.

I'm currently a SAHM but aim to be working by early next year.

Contact a debt charity such as stepchange, they will be able to give you advice. Declaring yourself bankrupt isn't cheap, give them a call they helped my partner alot and kept the stress off him.

Do you have any other debts, and are you in work? You need to consider the long term impact of bankruptcy, it's a big step if the debt is not massive.

Speak to a debt charity such as Christians Against Poverty for more tailored advice.

Avoid bankruptcy if you can, it will have a huge impact on your life. DH went bankrupt due to business failure, he has only survived because we had (and still have) separate finances so I hold all our credit eg mortgage now. Only possible for us to have a normal life because I earn a good salary and have excellent credit so we have a good mortgage etc.
If he was single he’d be stuffed. In our cse it was the right decision but it often isn’t.

You don’t go to prison for debt, worse thing they can do is take posessions. If you don’t have much there is nothing to take.

Get some good debt advice from a charity, face up to it but avoid bankruptcy unless you are independently advised it is the best thing to do.

As is usually the case where there is one debt there's more, there are other debts such as an old phone contract and payday loans he had out in my name. Credit wise he ruined me, but it's the council tax I'm most concerned about.

There's no new debts it's all from being with him.

I'm happy to contact step change or CAB but because I don't have any paperwork or exact amounts I think I'd struggle.

I don't have any assets they could take, the most expensive thing i own is my second hand TV

As much as I have to honour the debt they're chasing somebody with nothing to give.

Get an Experian report (costs £2) and it will include the full amount of any debts. Then you'll know how much you're dealing with.

If your total indebtedness is £5k-£20k, you won't need to go bankrupt but can get something called a Debt Relief Order instead. The fees are lot less (approx £100 rather than £600+ for bankruptcy). Under a DRO, all debts are written off after a year, bankruptcy can take quite a bit longer and the process is less complex.

Only accredited debt advisers can apply for DRO's. Stepchange, CAB, Christians Against Poverty are all good sources of help. The more info you have when you start dealing with a debt adviser, the quicker it will be, which is why I suggested getting your own report. It will also help if you make a list of all your income and outgoings.

You will feel so much better when you no longer have this hanging over you, it will be a huge relief.

You need to avoid the bailiffs (usual advice about not letting them in, park away from the property.)

They will eventually hand it back to the council and they you can organise a repayment plan.

I'm currently on income support which I have to budget down to a tee, aside the kids money which is £70 I only get £140 per fortnight which goes on absolute necessities.

I want to work but am not able to for at least the next 12 months.

Have a look at Money Advice Service web site.
Particularly the Debt Relief Order section.
I was in a very similar situation as yourself about 5 years ago, all my debts are cleared now. It cost me £90 at the time. It was honestly one of the best things I've done. It's awful having the fear of debt hanging over you, especially when it's as a result of an abusive relationship.
www.moneyadviceservice.org.uk/en/articles/what-is-a-debt-relief-order

I think you’re being naive if you think bailiffs won’t find out where you live. I’m sorry to be blunt and I don’t want to upset you, but you say yourself that you’ve buried your head in the sand before. It’s when, not if.

That said, I would think twice before going down the bankruptcy route. It puts a lot of restrictions on your finances and, although it only lasts for 12 months these days, it still takes a lot of time and work to rebuild your credit rating afterwards.

I’d consider speaking to Stepchange or a similar organisation before doing anything else.

If I apply for an experian report and then go to CAB or step change with the findings, and ask for help applying for a DRO - would that automatically halt any action being taken against me? Would I need to contact the council and the companies and let them know I'd taken out a DRO.

I'd be astonished if it's anywhere near £20,000. I don't see how it could be, but I know bailiffs like to add on extortionate fees after they've been to addresses and had no luck (as is the case with my previous addresses)

You need to avoid the bailiffs (usual advice about not letting them in, park away from the property.)

It’s illegal to refuse entry to bailiffs.

I don't think I'm safe from the bailiffs finding me, it's a constant worry as I know it's only a matter of time that's why I want to have this dealt with as soon as possible.

I'm secure in my surroundings now so want to make a start on sorting out what needs to be sorted.

That’s not true. They can only force entry for a criminal fine. Why do people continue to post such incorrect advice on this forum?

I know you've relocated and have nothing to do with your ex, but surely he's liable for some of the debt? Even if he incurred it in your name.

You need advice. I would have thought he could be perused without your involvement.

If you tell them you are on income support most councils will bring the debt back from the bailiff and apply for an attachment to your income support. I don't know what the attachment rate is now as been out of working for a local authority for a while (redundancy 2 years ago) but it is normally a set rate. Till the end of time if that is how long it takes.
If you come off benefit you contact them to make an arrangement.
I would go to step change or CAB to get help sorting it all out. They can contact the council and find out how much you owe. And you can start getting on with your life knowing you are doing something about it.
Sometimes you can get some of it written off if they know the circumstances and it's deemed uneconomic to pursue. Step change and CAB are both good at spotting when this might be possible and for want of a better expression they are good at getting a "sob story" across to maximum effect. I don't in any way mean you are making anything up it's just good if you give them a full picture of what a bad time it was.
Also bear in mind that it's rare to be sent to prison for council tax. Some councils have a policy never to do this. And a judge would be unlikely to send someone down who has children and no one else in the world.
Go for it op and regain your full freedom from that awful man who treated you so badly. I'm sure it won't be as bad as you think once you get arrangements for repayment in place you might even feel better as you don't have to worry about anyone turning up on your doorstep any more.
Good luck and sorry for the awful time you have had. I hope things get better and better for you

It’s illegal to refuse entry to bailiffs

No it isn’t. I swear people make stuff up on the spot sometimes.

I assumed he'd be liable for the debt too, and he is for part of it (when a tenancy was in both of our names) but the lions share of the debts are on me as more often than not the tenancies were in my name only so he could stay under the radar, like the spineless shit that he is.

I explained my circumstances to the lady I spoke with at the collections department for one of the bailiff companies, she was understanding and sympathetic but said it didn't change anything as far as me being liable unfortunately.

At the moment I'm reliant entirely on benefits and borrowing small amounts from my DM to tide me over when I run out of electric/gas. I'm not living the high life by anyones standards and don't see where I could tighten my belt to allow for a payment plan. I'm desperate to go to work but the childcare costs are astronomical so I'm having to wait until DC qualify for some free hours which will mean I can get a part time job.

I really appreciate the advice I've been given here (and the fact i haven't had my arse handed to me!)

Feeling a little more optimistic to know I have options and can begin to regain some control over the situation.

My plan is to apply to experian for a credit report then make an appointment with CAB or stepchange to see if I can get a DRO.

I the (extremely unlikely) event that the debts are over £20,000 where would that leave me? There's no way I'd owe that amount to the council, but I know payday loan companies and bailiffs add on alot of fees which mount up and spiral so there's always a small chance that has happened, isn't there?

OP,

I'd go with the advice of a DRO as per the poster up thread.

The cost is £90. Speak to the cab and they will apply for a credit report on your behalf. Any debts that are listed on there that are unsecured can be included in the DRO. If your circumstances don't change within a year, your debts will be written off. The DRO sits on your credit file for a year.

You can pay the £90 in installments, (although while you're paying this off, action won't be stopped)

I'd start by gathering your previous addresses, contacting the authorities in writing with proof of your being moved by services due to abuse.

You'll get through this. It's rough but once through whichever route you take, you can begin to live again.

If you left three years ago surely you qualify for childcare help by now anyway. Plus tax credits pay for childcare.

I wouldn't go bankrupt. I'd get back to work full time (going to be hard enough as it is to find an employer with a large cv gap of unemployment without having to declare a bankruptcy) and agree a payment plan.

With two children to support, let alone the debt you can't afford the luxury of not working or part time.