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AIBU?

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Original poster

To apply for bankruptcy for historical council tax debt

70 replies

Missesmop · 20/01/2019 10:15

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.

OP posts:
ChrisjenAvasarala · 20/01/2019 11:34

Oh wait; council tax arrears are incljded as qualifying debts with a DRO! I just googled it (was previously going from what I knew when a friend went through the same thing so she was wrong then!)

Gazelda · 20/01/2019 11:35

the (probably unfounded) fear of going to prison made me frightened to contact anybody

I though that was probably the case. Please, please, please talk to CAB. Things aren't going to get any better until you start dealing with this.

If council tax debt can't be wiped through DRO or bankruptcy, there will still be options for you. It must be hell living with this fear hanging over you. Please talk to an expert and start moving towards the brighter and worry free future you deserve.

MrsTommyBanks · 20/01/2019 11:35

@Missesmop when I got my DRO the money advice service handled absolutely everything. They were amazing tbf.
They first of all found all my debts.
Then they contacted all the people chasing me for the debts and stopped any further action from them.
All I had to do was sign some paperwork they sent me through the post, and pay the £90. Which I did in instalments.
They even managed to get me a £3000 tax rebate I didn't know I was due.
Honestly phone them first thing and get the ball rolling. They are so supportive and efficient.

Zwischenwasser · 20/01/2019 11:37

OP, stop believing randoms on the internet and get proper advice.

Eliza9917 · 20/01/2019 11:38

If they've sold the debt then surely it becomes like any other debt then and you can't go to prison for non payment?

WrongKindOfFace · 20/01/2019 11:38

Please do make contact with CAB or a debt relief charity. Honestly, it will be a weight off your mind knowing that it’s being taken care of and the bailiffs won’t be round any second.

In some cases the CAB can obtain funding to pay for the DRO, although I don’t know how you/they go about this.

BeeFarseer · 20/01/2019 11:38

Just to add that I had a DRO and was able to start repairing my credit rating as soon as the 12 month moratorium period was up. I did it by taking out a pre-paid credit card that charged a monthly fee, but the fee counted as a debt repayment, so I was building up a record of successful repayments.

After that, I was able to get a proper credit card aimed at people with bad credit ratings. I did the same, small purchases and paying off in full, then I was able to get a cheap contract mobile phone which again, let me build a history of successful repayments.

It's been four years since I had the DRO and I can get whatever credit I need, like most people, even though it's still on my record. And before anyone starts, I had to have a DRO thanks to losing my job through illness and being unable to service debts. Nothing to do with irresponsible spending. It could happen to anyone.

If you're eligible for a DRO you might be able to have the £90 fee paid for you, so please don't see the fee as a barrier. There are charities that will pay it for you, and some utility companies have a fund you can apply for even if you aren't in debt to them. Whichever debt advice service you use will be able to tell you more.

Original poster
Missesmop · 20/01/2019 11:39

I really hope a DRO does include council tax as that would simplify things enormously, given that the bulk of the debt is from that.

I'm going to bite the bullet and call citizens advice tomorrow morning. I've built up such a fear about tackling it head on, I've tried to focus on other things and kept telling myself I'll get around to doing it soon.

I haven't helped myself at all and could have had this sorted by now if I wasn't such a bloody idiot.

OP posts:
Biggerknickersagain · 20/01/2019 11:39

@CoughLaughFart

This is about council tax, where Bailiffs can't force entry. It's not illegal under any circumstances to refuse entry to a bailiff but in the circumstances I noted, if you do they can force entry with a warrant. But I repeat not for council tax. You said it's illegal to to deny entry to a bailiff it's not......

"Dealing with bailiffs
You usually do not have to open your door to a bailiff or let them in.

Bailiffs cannot enter your home:

by force, for example by pushing past you
if only children under 16 or vulnerable people (with disabilities, for example) are present
between 9pm and 6am
through anything except the door

"Bailiffs are allowed to force their way into your home to collect unpaid criminal fines, Income Tax or Stamp Duty, but only as a last resort.

If you do not let a bailiff in or agree to pay them:

they could take things from outside your home, for example your car
you could end up owing even more money
If you do let a bailiff in but do not pay them they may take some of your belongings. They could sell the items to pay debts and cover their fees."

That's from the government website.

www.gov.uk/your-rights-bailiffs

So no, it's not illegal to refuse to let the bailiffs in, which is what you have claimed. They can force entry in certain circumstances - which don't apply here.

MrsTommyBanks · 20/01/2019 11:39

Money Advice Service - 0800 138 7777

MrsTommyBanks · 20/01/2019 11:40

Some of my debt was historic Council Tax. Its definately included on a DRO.

alphabetti · 20/01/2019 11:43

Contact CAB ASAP and explain what has happened. They will give you some proper debt advice and find the best way forward for you so that you can continue your life without it hanging over you.

Look on CAB website www.citizensadvice.org.uk at their debt soloutions and there is also info on what bailiffs can and cannot do. If anyone contacts you though just say you are getting advice from CAB and will be in contact with them as soon as you have had your appointment.

Neverunderfed · 20/01/2019 11:44

I would contact the council and speak with them, the bailiffs can't do anything about the debt but the council can.

Absentwomen · 20/01/2019 11:44

Council tax arrears can be included on a DRO.

WhentheRabbitsWentWild · 20/01/2019 11:57

I had this issue BUT before Baliffs were involved , which likely makes a difference .

Council have arranged a payoff per month which is fine . They MAY do that with you but not so sure if its with Baliffs.

RayRayBidet · 20/01/2019 12:01

OP please read my previous post.
If you are on income support they will attach to your benefit for a nominal amount and call off the bailiffs normally.

RayRayBidet · 20/01/2019 12:02

@Missesmop

Sharkirasharkira · 20/01/2019 12:18

A DRO definitely can include council tax debt as I have had one which was discharged and finalised about a year ago and a significant chunk of that was council tax debt, which I accrued under similar circumstances! Speak to the CAB for sure, they were very helpful Smile

It will be ok OP, there is a way out of this x

redandyellowandpinkandgreen99 · 20/01/2019 12:18

OP I know this sounds mad, but some Doctors Surgeries have money advice people who do sessions at the practice, and give free advice and help (and it is usually the CAB.)

Check with them because they can book an appointment for you. Sometimes trying to get in at the CAB is very hard.

Also, a bailiff cannot force his way in, and yes, council tax arrears can be included in a bankruptcy. So can tax credits arrears. 2 years ago, my friend went bankrupt, (with £30K total debt,) and she bankrupted her £4000 tax credits arrears.

They still kept taking her 'debt' from her (out of her tax credit award,) at £80 a month. She disputed it, and they stopped taking it after 10 months. About 7 months after that she got a £800 cheque from them!

Don't worry too much (easy to say I know!) But yeah you could try and set up a DRO, but if you can come up with around £650-£700, it may be best to go bankrupt.

I don't know how much debt you have though. If it's less than 6-7 grand, I would not go bankrupt. Up to you though. As has been said though, bankruptcy does affect you for quite a while... It stays on your credit record for 6 years.

Then again, as you are at the stage where bailiffs are coming, it sounds like your credit record is a bit shagged anyway. So you won't have much to lose by going bankrupt. Except your debts!

Good luck @Missesmop Flowers

Jaxhog · 20/01/2019 13:57

Nothing to add other than good luck in finding a solution. Sounds like you've had a really rough time of it.

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