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Bankrupcy
Question:- If you owe council tax, can the council force bankrupcy on you and force a sale of the house?
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For more on marking an answer as the "Best Answer", please visit our FAQ.if you owe council tax and cant pay then they will send you to jail. A friend of mine was about �400 in arrears, lost her job, went to court, couldnt afford the repayments, went back to court, baillifs turned up to sieze goods, and then a order for commital to prison was made against her. In the end she got a provident loan to pay it off and owes twce the amount now.
When I was a Council lawyer, someone did not pay a �25 parking fixed penalty. 3 years later, the costs involved in getting that money, because the person concerned ignored letters, summonses, orders, etc. was many thousands. The onlly way they could pay the money off was to sell the house. In thoery, it could happen for Council Tax. .
Wilful refusal or culpable neglect in payment of Council Tax (i.e. able to pay but will not or did not) can result in commital to prison.
Debt in excess of �750 can result in insolvency proceedings, possibly leading to a charging order on the house. Lesser debt may be enforced via any/all of these methods: Attachment of Earnings, Attachment of Benefits and Bailiffs.
The use of bankruptcy as a tool to recover unpaid council tax is increasing. The number of people petitioned for bankruptcy by local authorities in England and Wales in 1992/93 was less than 1% of bankruptcy cases brought by creditors, but by 2005/06 that figure had leapt to 25%.
Debt in excess of �750 can result in insolvency proceedings, possibly leading to a charging order on the house. Lesser debt may be enforced via any/all of these methods: Attachment of Earnings, Attachment of Benefits and Bailiffs.
The use of bankruptcy as a tool to recover unpaid council tax is increasing. The number of people petitioned for bankruptcy by local authorities in England and Wales in 1992/93 was less than 1% of bankruptcy cases brought by creditors, but by 2005/06 that figure had leapt to 25%.