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marcus.n
Starting Member
6 Posts |
 Posted - 18 February 2010 : 10:53:59
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One more question for the forum please.
I have a liability order against me for council tax can this be included in my bankruptcy or not?
thankyou
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 18 February 2010 : 11:13:44
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Hi Marcus
The liability order for council tax is included in the bankruptcy and to answer your other post you need to self analize your present financial position, what your liabilities are to the value of your total assetts. The revenue issue more bankruptcy petitions than any other body they are not discrimatory in their pursuit for what they are owed. Finally if you are the only director of the business then dont waste money winding it up if your are going to be made bankrupt. |
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marcus.n
Starting Member
6 Posts |
Posted - 18 February 2010 : 11:25:47
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Hi Daniel,
Thanks for your advice.
I have no assetts to mention and feel this is the best time to clear the table and start again so in a way am happy as best as you can be to be made bankrupt by Inland revenue.
However is it better for me to go to the courts and instigate it just to get it done.
I am the sole director of the company. If I am personally made bankrupt how does that work with the company. You mentioned you wouldn't waste money winding it up.
Is this because they go hand in hand or how would it work.
Sorry for so many questions but advice is greatly appreciated.
Many thanks,
Marcus
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 18 February 2010 : 11:37:59
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Hi Marcus
Let the revenue bankrupt you if that is what they are going to do, it will save you £510. The Official Reveiver will instruct companies house to close down the company, you cannot act as an officer of the company so just walk away from it, if the creditors wish to appoint a trustee to deal with the administration then so be it. |
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marcus.n
Starting Member
6 Posts |
Posted - 18 February 2010 : 13:55:32
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Thanks Daniel,
really appreciate your time
marcus
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debtinfo
forum expert
2826 Posts |
Posted - 18 February 2010 : 20:18:28
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Hi Marcus, although the council tax will be a provable debt in the bankruptcy, this does not stop them from sending baliffs to remove goods as shown below.
9.11B Local authorities – timing of distress in bankruptcy proceedings
(November 2008)
The right of local authorities to distrain for unpaid council tax and non-domestic rates (pre and post bankruptcy order) is exercisable at any time, including after the bankruptcy order and even against property comprised in the bankrupt's estate, in accordance with section 347(8) and (9) of the Insolvency Act 1986. The only exceptions being where an application for an interim order, under section 253 of the Insolvency Act 1986 is pending, whereby the court may forbid the levying of distress under section 254(1)(b) of the Insolvency Act 1986. Additionally, where an interim order has been made under section 252 of the Insolvency Act 1986, leave of court must be obtained before distress is levied (see paragraph 9.37).
Any liability for council tax or rates arising after the bankruptcy order, is not provable in the bankruptcy proceedings and the local authority can use all of the collection methods available to it in the recovery of such a debt, Where the local authority has distrained upon the bankrupt’s assets in the period of three months ending with the date of the bankruptcy order, the goods or their proceeds of sale are charged for the benefit of preferential creditors (see paragraph 9.33).
9.11C Local authorities – council tax – distress process and restrictions
(November 2008)
The local authority must give 14 days notice of the bailiff attending. The bailiff can only seize the goods of the person(s) assessed to pay council tax, including property vested in the trustee. Goods which are situated in a dwelling house and are reasonably required for the domestic needs of the debtor and his family cannot be seized when distraining for unpaid council tax. Rented or hired goods and utility fittings are also exempt from distraint for unpaid council tax.
The bankrupt can refuse access to the property and a bailiff distraining for unpaid council tax cannot use force to gain initial entry to a property. However, walking through an unlocked door or climbing in through a window without causing damage is considered to be a peaceful means of entry. A bailiff who has previously been allowed entry to the premises can force entry, to recover goods which have previously been seized by walking possession (see paragraph 9.17).
If goods are removed, or impounded, they must be held for a minimum of 5 days before sale to allow the bankrupt to settle the debt. If a levy of distress is completed by the sale of property but does not recover sufficient funds to discharge the debt under the liability order the local authority, before the bankrupt’s discharge, can levy a second or subsequent distress. A person aggrieved by the levy of, or an attempt to levy, a distress may appeal to a magistrates' court.
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 19 February 2010 : 13:44:56
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Hi Debt info
would say thanks for posting but (panic)
just to try and get some balance what they can do and what they do in practice are often miles apart.
would be an interesting argument (hopefully one that none of us will have).
The official receiver has taken over your affairs at the time of bankruptcy including all property and belongings.
subsequently when council baliff comes a knocking on the door, they are taking from the official receiver then they are having preferential treatment over the rest of your creditors. (bet HMRC are impressed with this as their status as preferential creditor has been removed)
i did have a couple of councils listed as my creditors, I have spoken to them (prior to this posting)and they were "happy " to have debt included in bankruptcy and said that they would close the file
probably the amount owing may direct the councils behaviour
regards Richard
regards Richard |
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debtinfo
forum expert
2826 Posts |
Posted - 19 February 2010 : 17:40:03
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| As you say, what they can do and what they actually do is different. I have come across a few cases (out of hundreds) where the baliffs have tried to collect by distraining on goods after the bankruptcy order. Like all baliffs though, you are free not to grant them access to the property. |
Edited by - debtinfo on 19 February 2010 17:40:37 |
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Tamejoca
Starting Member
United Kingdom
6 Posts |
Posted - 04 April 2010 : 02:46:56
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I found this post and have not seen before tonight that CT is not written off by bankruptcy. We are filing for bankruptcy on Thursday and had a visit from a bailiff last Monday.
I had assumed that if we made it to Thursday the debt would be written off (all info I have seen does not state CT Arrears as a debt that is not cleared).
In actual fact, does this mean that the Bailiffs can come at any time now - and will do even after bankruptcy?
I am also confused - if we have not spoken to them, and they have left a note to say they called - can they return and come in? - Also, can they remove items including a car, from the outside of the property even if they have not spoken to you.
I hope someone will still pick up this query
Thanks |
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debtinfo
forum expert
2826 Posts |
Posted - 04 April 2010 : 11:02:46
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ok, i little clarifaction of what bankruptcy is. When the bankruptcy order happens the debts are not written off straight away, you are in most cases given the protection of the courts against any action against you. The debts are written off when you are discharged from bankruptcy at the end. This will still happen with council tax debts, the difference is that if a liability exists it over rules that protection during the bankruptcy, the debt will still be cleared at the end of the bankruptcy.
As we have said even though they still have the right to distrain on your goods most councils will not, so the first thing to do is contact the council when you are bankrupt and ask them to stop the baliff's |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 04 April 2010 : 21:33:51
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Hi TameJoca
as debt info has stated most councils will just include the debt and not persue you.
the rules state that they can but more often than not will not follow up, refer back to my earlier posting on this thread
after petitioning for BR, The OR will also send a letter to the council
The council are looking for the picasso on the wall.
You do not allow any one access to your house unless they have a warrant, not even so that they can phone their boss or have a glass of water.
regards Richard |
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Niobe
Administrator
United Kingdom
4590 Posts |
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memphisd56
Junior Member
United Kingdom
112 Posts |
Posted - 07 April 2010 : 12:41:25
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| Oh, and i wouldn`t keep your car visable at your address, it has been known, for baliffs to clamp cars, as they are an easy target. Don`t let them in, or leave windows or doors open!. |
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bankruptcy and council tax
