Bankruptcy but council still want some council tax

[eli1026]

Hi

I made myself bankrupt in December regarding other debts (not specifically council tax). In October, the council issued a summary warrant for council tax. My advisor stated that I would not have to pay 2014/2015 council tax as the summary warrant was issued prior to bankruptcy and the full year would be regarded as a debt. I received a letter from council stating I owed £181 for the above mentioned year and I questioned this and the said it was for council tax for after bankruptcy. Does anyone know what is correct? Should it all be written off for the full year or not? Thanks in advance

[maroondevo52]

Hi,

 

Your adviser should know, or give the Council a phone to explain what they are charging for.

 

This may help..........

 

If the client owes community charge or council tax arrears before the sequestration this is treated like any other debt with the local authority becoming one of the creditors. The local authority is not able to use its debt enforcement powers after a sequestration. The client is still normally liable to pay council tax for the period after sequestration started, but see the paragraph below.

 

If the client arranged to pay council tax by instalments, but did not make the payments on time, s/he may have lost the right to pay by instalments, and become liable to pay the whole year's tax. This debt is treated like any other. Because the whole year's liability forms a claim in sequestration, the client is not liable for any payments towards council tax for the rest of that financial year, (so long as s/he remains sequestrated).