With debt worries mounting for many, one area that many people are struggling is paying their Council Tax.  Council Tax is usually paid over 10 monthly installments. If you’re suffering financial difficulty and you are having trouble making your council tax payments, you should contact your local council as soon as possible.  You should give them details of your situation and try and work out if you are going to be able to make the missed payments.

Once you have contacted your local council you should assess you finances and make a list of all the companies you owe money to.  Once you have done this you should draw up a budget which shows your income and expenditure.  This will  help you work out what you can pay each of your creditors.

After you draw up your budget; if you can’t come to an arrangement with your local council, your council has the right to ask the Magistrates’ Court for what is called a Liability Order.  A Liability Order is basically a demand to pay the full sum of money that you owe, plus other costs that may be council taxincurred.  If it comes to this, you have the legal right to attend the court hearing.  During this hearing you may present evidence that you feel may help you.  In truth, the only evidence that will help your case is that which shows are not liable for the debt.

If you choose not to attend the court hearing,  you should take other measures such as speaking to the council or, your Local Citizens Advice Bureau. The council will try and assist you if you are open with them and more than likely they will to come to an arrangement that suits your needs.

If the Liability Order goes ahead, your council has the legal right to enforce action against you with the aim of recovering the money owed.

Your council will have the legal right to deduct a regular amount directly from your wages. Your council will arrange this directly with your employer which can cause embarrassment.  Your council can also apply for deductions from any Jobseekers’ Allowance, Pension Credit or Income Support that you may currently be receiving

One of the final steps that your council may take is to send bailiffs to your home.  These bailiff’s can seize anything of value.  The money raised from this will go towards paying your debt. If the council choose to go down this road, the billing authority must send you a letter, a fortnight before the bailiff’s visit.  This letter must state how much is owed under the Liability Order.  If you receive this letter you can still contact your Council and the bailiffs in order to try and negotiate an agreement on payments.

If worst come to worst, as a last resort scenario, your council may apply to the Magistrate’s Court in order to get a warrant committing you to prison. The court will only issue a warrant if it is satisfied that the failure to pay is the result of culpable neglect or wilful refusal. If found guilty, you can go to prison for up to 3 months.


Popular searches for this article:

Tagged with: • •

Filed under: FREE Debt Advice

Like this post? Subscribe to my RSS feed and get loads more!