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ColinB1985
Starting Member
2 Posts |
 Posted - 28 October 2010 : 23:45:33
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Hi,
I found out today that my mum has council tax arrears which were being paid off monthly at £300/month. However because of a student discount error by the council it turns out she £2000 more in arrears in relation to amount that was previously owed. Now the council (Angus, Scotland) has stated that she 2 weeks to pay the full £2000 or she will be made bankrupt.
My real questions are firstly if they are allowed to do this or if they are using bullying tactics, we were only notified about these arrears very recently. Secondly we are going to offer them £500 in the next week and the other £1500 within the next 4-5 weeks, do you think they will accept this?
My final question is I was told that the bankruptcy can be stopped if it is deemed unfair (on the councils part) and we are showing a genuine desire to and attempting to pay the money owed. Is this true?
I appreciate any advice you can give me,
Thanks
Colin |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 29 October 2010 : 00:08:31
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Colin,
welcome to the forum, and I hope that you do find an answer, however,Scottish bankruptcy(sequestration in Scotland) law is different to the England/Wales bankruptcy laws, but from what I do know, the Bankruptcy and Dilligence(Scotland) act 2007 received Royal assent in January 2007,which made Scottish bankruptcy laws similar to English laws(e.g. only bankrupt for 12 months instead of 3 years) but the threshold for a creditors petition is £3,000, and :
Debts under summary warrant procedure (such as council tax arrears) will now only be enforceable following a 'charge for payment' and will be subject to the time to pay provisions under the Debtors (Scotland) Act 1987.
So overall, with not knowing if the Bankruptcy and Dilligence(Scotland) act 2007 is now law, you'll need to find out if that is the case,as it seems the new provisions may affect your circumstances, so you will need to seek advice from an expert in Scottish bankruptcy, as I only ever dealt with bankruptcies and winding up orders in the NW of England.
Good luck
Big Al |
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ColinB1985
Starting Member
2 Posts |
Posted - 29 October 2010 : 00:29:53
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Thanks for your advice.
I was wondering if I could trouble you for one more thing. I have been looking (admittedly only on the internet though at the moment) and it seems that the B&D Scotland Act 2007 is law (but like I said haven't got any concrete source)
If this is the case, would the new £2000 be the only thing that would be taken into account as that would take it under the £3000 threshold in the B&D Scotland Act 2007 - or would the previous arrears be considered as well (as I'm pretty sure that would take the total owed over £3000)
Thanks again,
Colin |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 29 October 2010 : 01:05:25
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If it's the same as England, then it will be cumulative arrears, however by paying enough you could take it below the £3,000 threshold, meaning that they couldn't petition for bankruptcy, however that depends on whether the B&D act 2007 is now law.
Big Al |
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Council threating Bankruptcy
