County Court Judgments (CCJs) are added to people's credit records, so why shouldn't the same be done for Liability Orders (LOs) for council tax arrears? This is a really bad idea, involving major problems and costs for local authorities and magistrates courts. These would massively outweigh the potential benefits. Magistrates Court Liability Order processes are not comparable to County Court … [Read more...]
It’s time to stop sending people to prison for council tax debt
A new report called "I can't believe we still do that" produced by Payplan and the Institute of Money Advisers (IMA) looks at the imprisonment of people for council tax arrears in England and Wales. Councils started court action to send 4,881 to prison in 2016-17. Their average debt was only £2,213. UPDATE: June 2018 -Good news! the Welsh government wants to end this and has started a … [Read more...]
Councils sent 2.3 million debts to bailiffs in 2016/7
Councils are using bailiffs more frequently to collect council tax arrears, parking tickets and other debts. Money Advice Trust has collected figures from councils across the country that show: councils referred 2.3 million debts to bailiffs in 2016/7 this is an increase of 14% on 2 years ago and c. 30% on 4 years ago. You can see individual council details using the map … [Read more...]
No council tax to pay in February & March?
Most people pay their council tax in ten equal monthly installments, not twelve. So in February and March you have two months with nothing to pay. Some water companies also bill like this, collecting eight monthly payments with nothing to pay from December to March. If you like your budget to be as regular as possible, with the same out-goings each month, this isn't a very helpful approach. But … [Read more...]
What to do if you have problems paying your Council Tax
If you owe council tax, you are not alone. Council tax debts are now the most common type of debt that Citizens Advice sees. And in April 2018, the average council tax bill will be going up by £81. Council tax arrears increase dramatically if you ignore them because local authorities are faster to go to court and send in bailiffs than other creditors and this adds a lot of extra costs. This is … [Read more...]
Using bankruptcy to collect council tax arrears
More councils are using bankruptcy and charging orders as a method for collecting council tax arrears according to research by accountancy firm Moore Stephens. In 2013/14, 32% of councils used bankruptcy for some council tax debts - a sharp increase from 20% in 2009/10. It is estimated that councils petitioned to make 1,100 people bankrupt in 2013/14 because of council tax debts. But is … [Read more...]