council tax arrears - serious dilemma urgent help please!

[withoutfundsandscared]

Hi and, first of all, apologies for name change but am trying to protect my professional persona as far as possible.

Oh the shame of being poor...

I have posted this in Other Subjects also.

Anyway, we are in mega-debt. I am seeing the CAB tomorrow to sort out the comparitavely minor (in some respects) debts and will probably seriously consider bankruptcy as the only option - we will see. However, we have Council Tax arrears galore about which very stupidly we have been largely (although not completely) been burying our heads in sand.

It is at the bailiff stage for non-payment on three different properties and is into the several thousands.

It is entirely unfortunate and complex personal circumstances that has led to this situation and we have no way of paying. We are vacating our property this month as we cannot afford the rent. We have not a penny to spare in reality.

I have phoned the courts and the council and have been advised that there is no option but to pay. I suggested a token offer which I really could not afford but even this would be declined as it would amount to about £1 per week. Even this, we cannot truly afford.

If we go for bankruptcy on other debts then there is a possibility that I might free up £200 per month that could be paid to the Councils in question but we would not be able to pay for subsequent council tax if this offer was made.

What I really badly need to know is, will they (not can they because I know they have the ability) take me to prison?

I have 3 young children and I am so very worried.

I am self employed and my partner incapacitated.

If we were declared bankrupt there is only our washing machine and old video plus my wedding ring that is worth anything. I think I can keep the computer because I use it for work.

I also have a car which I haven't yet paid for in full - my mum keeps up repayments on this and has done for a year.

The have been advised to hide my car for now.

I need my car to carry out my work. I use public transport a lot but there are occasions when this is not possible so my work would become far less viable without it. Will I have to give it up? Obviously this is a lesser worry than prison but i am concerned that means to work will be removed and our situation will worsen.

Can I transfer ownership to my mother legally to avoid losing my car?

I am such a mess over this and normally hold things together pretty well.

Any help or advice would be truly appreciated.

TIA

I'm sorry I really don;t know enough about this - you need to talk to CAB about it at the same time. You need to declare all your debts when you go bankrupt. Don't the council get treated exactly the same way as all your other creditors when you go bankrupt?

If your mum is paying for the car repayments then you can transfer the car to her in consideration of her paying the repayments. This assumes that the value of the repayments she has paid to date plus the repayments left to pay are roughly equal to the market value of the car today.

Also when you become bankrupt they will allow you to keep tihngs which help you earn a living. And I doubt they would take your wedding ring.

afaik yes u can change the onwership to your mum, althou the repayments would have to be sorted out (I assume a new loan under her name)

also afaik they will leave the washer as you need it for your children. (someone correct me if I'm wrong)

don't know much else on the bankrupcy thing but def speak to CAB.

Thanks Suejonez.

Unfortunately Council Tax debt is different because they can make you pay or be imprisoned because it is a government debt. I have heard this several times today and I am in utter fear. If I had money I WOULD pay.

I wonder how long they imprison you for - anybody know?

that lady got 3 months didn't she who didn't pay in her 60's but not sure if they'd send you as you have children.

yeah but she was actively refusing to pay, you are not. I very very much doubt they would send you to prison as they would not gain anything by doing so. In fact it will cost them a lot more to do that.

So what I would do is go to the CAB as you are doing, you said it is to sort out minor debts, I would use this session to discuss it all. As you know the council tax debts are the most pressing, so sort them first.

It is just a shame that you have let it go this long as it will now cost more than it should have done.

Good luck

Also, make SURE you are claiming all the benefits to which you are entitled. Again, the CAB and/or Advice Centre can help w/this, so can various charity groups who have welfare advisors on hand.

Thanks once again for all the advice it was a huge help and upport to me getting through yesterday.

I have been to CAB today and been advised that bankruptcy might not be the best option but to offer a very small amount to each creditor is the thing to do, although we have a financial deficit.

The same goes for the Council Tax and other priority debts.

The advice was really useful but I do have a few questions that have occurred to me since:

How does one go about getting debts 'written off' or reduced and how long until this will be considered?

I was told that my car cannot be taken if I have paid more than 1/3 - I have - is this correct?

What happens if you decide on bankruptcy or you are forced to go bankrupt by creditors and you are not living in the country but are still UK resident (our plan, all above board and we will be informing creditors) because of work? What I mean is how do they keep tabs on you!?

Think that's all I am wondering/worrying about right now!

Thanks again.

The only thing we aren't getting benefits wise (but have already claimed for) is Housing Benefit at about £30 a week.

I don't know the answer to your questions but couldn't you write them down and post to womever you saw at CAB and ask for an answer when you go back and see them. I assume you are going back to see them at some point?

Glad it went well BTW. I'm sure you are relieved to be planning something concrete to get it all under control.

Hi, without wishing to promote other websites on mumsnet these people really know their stuff. I'm sure if you post your situation they will answer your questions.
Hope that helps and good luck finding a way out