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council tax and bankruptcy

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Really hoping someone here can help. Last year my husband was sequestrated and on the sequestration was listed an outstanding amount owed to Charles Anderson for council tax. Obviously he was then cleared of the debt and then -joy- the problem became all mine since we were jointly and severally liable. My query is this - I'm a SAHM (stay at home mum) and the only 'income' I have is child benefit and childrens tax credits which are in my name, are they able to take this money from me or are they a protected income. I've explained this to the girl from CA who keeps phoning me but she is adamant I still have to pay and today I received a letter saying they would take the money from my bank account and that I might be subject to sequestration.


Any advice greatly appreciated.


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Although this income is safe from arrestment, as soon as it hits your bank account it loses its protection (see below from Scottish Exec)


"It is generally considered, although not formally determined, that exempt payments, including earnings and social security benefits, lose their exempt status once they are paid into a bank account. On a number of occasions the Scottish Law Commission has considered the question of whether, and how, to protect earnings and other sums exempt from arrestment after those funds have been lodged in a debtor’s bank account."


Slightly better news is that with effect from this April, accounts have been given a degree of protection under the Bankruptcy and Diligence etc. (Scotland) Act 2007. This has introduced a "protected minimum balance" currently £370. Any sums in your bank account over and above this level can be arrested. If your balance is below the threshold it can't be!

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