C Tax arrears, how to negotiate fair repayments?

[Undercover-Elsa]

Hi,

Posting on behalf of my neice & husband, who got behind with their Council Tax to the tune of around £600.

They have both had their heads in the sand financially, and I'm trying to help them sort themselves out.

They phoned the Council on Friday to offer £60 a month over 10 months (on top of their current payments).

However, a rather sharp lady said that was out of the question and would accept nothing less than £200 over 3 months (plus current payments), which they cannot afford.

Surely this is being unreasonable? They are genuinely trying to sort things out, but if the Council insist on this it will put them into a debt spiral with their other mortgage/loan payments etc.

Should they stick out for £60 a month?

Elsa x

[Conniff]

Sorry about the slow reply.

 

Yes they should stick it out. Get them to send a budget sheet with income and expenditure to the council with their offer and a cheque for the first £60.

 

Arrears are always taken first, so if they send a cheque for the 60 plus their installment, they will credit it all to the arrears which could land them with another liability order for this year. Councils like liability orders, it makes them huge amounts of money which is why they are not willing to help in any way.

[ss002d6252]

It depends on the authority - if we receive payments that are quite obviously for the instalment + arrears, the payments will be split.

 

6-12 months is the standard repayment scheme we work over , certainly if someone offered it over 10months + current year then I would accept it.

 

Anyone asking for instalments of £200 per month + current year charge would be hauled over the coals as its actually just shooting ourselves in the foot as you know that 1) people wont pay & 2) its costs a fortune more in recovery costs to try and get the money.

[Undercover-Elsa]

Hi many thanks for your replies, it confirms what I believed.

I'll get back to her today for an update and let you know how they got on.

Elsa x