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.

If any person is named on a council tax bill, there is what's known as joint liability. That means both parties will be chased for 100% amount owing.

Pay day loan companies. Write and eplain that you're seeking debt support from charities and ask them to put on hold for 30 days. That'll give the CAB time to write to them.

You can be sent to prison for non-payment of CT. However, you're a long way from this . There has been some case law on this where a mother was sent to prison and it was overturned.

It is not 'illegal' to refuse entry to bailiffs. The scaremongering on this is nonsense.

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?

Pretty much. When I've supported clients with debt problems, just telling companies you're in the process of getting a DRO tends to stop further action. After all, they'd be wasting their money: they'd spend money chasing the debt and then it would be written off anyway.

Bailiffs can be a bit different. I don't know if they get paid according to what they collect or something, but some of them can be pretty ruthless and tell all sorts of lies. One bailiff told a client of mine that council tax couldn't be included in a DRO, which is complete bollocks.

Would I need to contact the council and the companies and let them know I'd taken out a DRO.

The insolvency service does that when the order is made. They write to all the creditors and tell them.

I think the bailiffs are the wrong people to talk to about the debt, their only responsibility is to retrieve the funds. The council on the other hand are more likely to have a responsibility so you need to talk to them directly

The council won’t talk to you once it’s with the bailiffs. OP, I don’t think going bankrupt is right for you but I do think you need proper advice - citizens advice would be my recommendation (not step change.)

It’s illegal to refuse entry to bailiffs.

That's absolute rubbish. In fact, it's the sort of rubbish a dodgy bailff will tell a debtor, so I'm sorry if you fell for that.

It's illegal for bailiffs to force an entry. They can only come into your home if they can gain access merely by "lifting a latch". If you keep your doors locked and windows closed, they can't come in.

The only exception is when it's an eviction. Even then, bailiffs will only usually force an entry when they're accompanied by the police.

You can refuse entry to a baliff and refuse to even deal with them and ignore that they exist the only baliff you can’t ignore is a high court baliff and that’s for income tax,vat and business debts.
Never let any normal baliff in your home ever. They cannot break in ever unless you have let them in your house once and if you have they put a claim on things then they can break back in so never ever let them in no matter what rubbish they say.
Debt collectors don't buy your debt which is a big red herring people think.
Pm me if you need more info

OP, I mean this very kindly, but you've posted about this previously. About a month ago? So you haven't taken any action since then?
I know it's hard and scary, but the sooner you address this the better.

Can you ask your mum to have the DC for an afternoon this week so that you can do 2 things - go online to get an Experian report and phone Stepchange, Christians against Poverty or CAB? All of them will be very busy so it might take a few tries to get through. But the relief that you will feel that you're moving towards being free of the debt will be huge. Please do those 2 things this week

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?

I'd speak to the debt adviser about that. Sometimes, debts can be disregarded because they're not enforceable, but this is complex. But if your total amount of recoverable debt exceeds £20k, bankruptcy may well be your best option. Although the fees are high, I've managed to get charity grants to cover them for clients before now, and some clients have been able to borrow the fees from family.

If you've got payday loans, you may be entitled to some compensation. Have a look at this:

www.moneysavingexpert.com/reclaim/free-payday-loans-refunds/

It would be ironic if you got enough compensation from payday loans to cover your bankruptcy fees, if you need to go down that route!

I think it might be easier for you if went to CAB or similar. Stepchange do everything over the phone, which can be difficult if you get in a stress.

It’s illegal to refuse entry to bailiffs

No it's not. I've been spun the same line by a bailiff - are you one?!

Bailiffs can force entry for

unpaid magistrates court fines, for example if you were given a fine for not paying your TV licence
tax debts for HM Revenue and Customs, for example if you owe income tax.

They aren't allowed to force entry for council tax, nor is it illegal to refuse entry. They can however enter through unlocked doors and windows.
The exception is if they have gained entry and levies goods, then if you don't pay or stick to an agreement they can force entry to retrieve the levied goods.
That's why you're always advised not to let them in. So this can't happen.

OP - I'd advise you to seek advice asap and while you do, start paying something, even a £1 a week, use the online system to do it, it will start to build up a payment history to show good faith for the debt.
You can write to the council you owe and request the information you need, such as the reference number, then start paying while you seek advice from CAB or similar. It will of course mean bailiffs will end up with your address, and likely come round, but you're going to get that any way. Don't engage with the bailiffs until you have got advice, If the bailiffs get no joy they'll pass it back to the council anyway.
I've been in this situation and it's scary and hard, hang in there, you're doing the right thing now, starting to sort it out.

Until now the bailiffs have only visited last known addresses and haven't tracked me down to my current one, If I can sort a DRO before they find me here then brilliant.

A friend moved into my old address and had rosendales at the door looking for me, she showed them her tenancy and explained I no longer live there so they left satisfied that i had moved. They did tell her to inform me that they're going to get my new address and come here.

Well she’s name changed then gizelda, this is the only post she’s made.

Op this is where you need to see citizens advice. I don’t think a DRO would extend to council tax.

Im sorry to say this but council tax and any ither tax debts dont get taken away with bankruptcy. I used to be a debt advisor. You need to deal direct with the council or any bailiffs they instruct if it gets that far

That's absolute rubbish. In fact, it's the sort of rubbish a dodgy bailff will tell a debtor, so I'm sorry if you fell for that.

It’s not rubbish at all. You’re talking about forced entry, which is very different.

I did post about this before about a month ago yes, the (probably unfounded) fear of going to prison made me frightened to contact anybody as my irrational thinking was as soon as I begin proceedings to have it sorted out and make my address known -
I'm going to end up with a court summons and a committal to prison.

I got all psyched up to sort it out and then bottled it

No it's not. I've been spun the same line by a bailiff - are you one?! Bailiffs can force entry for unpaid magistrates court fines, for example if you were given a fine for not paying your TV licence tax debts for HM Revenue and Customs, for example if you owe income tax.

So you’re saying I’m wrong, followed by a list of circumstances in which I’m right. Okay...

Just make an appointment with step change & let them help you. One step at a time, literally. Bankruptcy is not a great idea but they are the experts and they want to help you. I wouldn't do anything in advance tbh I would just let them help you work out how & where to start. Good luck op xx

As Surf just said, CT and any other tax debt do not go away even with bankruptcy or DRO. Your best bet is to contact Citizens Advice and sort out a payment plan

A little confused and concerned how I've seen people saying a DRO and bankruptcy don't cover council tax arrears?

I'm screwed then aren't I

Council tax debt isn’t written off. You need to call the councils involved. Speak to them. If you speak to them, explain the situation and offer proof from the police involvement then that can work with you to all instalments, but if you ignore it then it’s all going to come crashing down when they find you.

How old is your child? If it’s been years since you left then surely the fee hours will start soon and not another year away?

I don't have any disposable whatsoever at the moment and they're unlikely to wait until I've gained employment are they?

I'm living on the breadline and have no areas that I can pull from my budget. I'm in the minus some months.

I think I also posted on your last thread.
Please, talk to Womens Aid. they can help you get legal advice and the right support.

I think historic council tax can be written off under bankruptcy under very complex circumstances but it's not the standard. A DRO doesn't include council tax.

You need expert advice on this. Don't let it progress any further.

Declaring yourself isn't an easy process, it's not the easy way out of debt and you will have to carry it with you for a lot of years. No credit, you'll struggle with anything that requires a credit check even down to some jobs.

Contact step change or another debt advice charity. They will help you set up a payment plan and get it sorted.

water companies use high court bailiffs, you can’t ignore them