Bankruptcy Information Centre

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Can I Be Made Bankrupt For Council Tax Arrears?

Question:

I’ve just recieved a creditors bankruptcy petition for council tax arrears for £3546.31. When I go to court I have a mortgage on my home and don’t want to lose my home.

Answer:

A creditor can petition for your bankruptcy for unpaid debts if no mutually agreeable repayment arrangement is reached.

If you own property that has equity in it, the property could be at risk of being sold by the official receiver or trustee to generate funds to repay your creditors in bankruptcy.

In this situation, one approach to avoid the loss of your home would be to contact a loan broker and see if you could borrow enough money to repay the debt of the creditor that is threatening to make you bankrupt.

You can also try to work out a payment arrangement with them as well.

Thank you for letting me help you.

Jon

If you have a bankruptcy question you’d like to ask, just ask using this online form. All help is free.

Source: Can I Be Made Bankrupt For Council Tax Arrears?

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