Council Tax Arrears
As the economy slumped and people found themselves either with less money to work with or a total loss of their jobs, they began to juggle their finances; and many of us cannot juggle too well, so the balls fall to the floor.
One monthly bill or expense that is a priority is council tax, and for many of us this is set to be paid by a standing order each month.
However, more and more people I hear from have stopped paying their council tax when they have been experiencing financial issues.
Again, these taxes are a priority bill to pay.
If you have having difficulties you need to discuss this with the council as they may be able to assist you in some way.
But, by not paying your council tax you could be placing yourself in a precarious situation and I’ll explain: by not paying your council tax the council can attempt to collect the debt and even make you bankrupt.
And that is what many of the councils do as a collection tool, make you bankrupt; if you have property, this is a huge issue.
Of course if your situation is such that you cannot afford to pay the council tax, then you may be in need of some serious advice and assistance, as even though it is a priority, such as rent/mortgage payments, utilities and food, if you cannot afford it, then perhaps you also are not in a position to pay your rent or mortgage.
I have been seeing the councils make people bankrupt more and more and they are within their rights to do so; however they seem to me to be a bit more aggressive than some banks or lenders.
So pay your council taxes.
But also keep in mind if you have council tax arrears, either from your current property or a previous property: council tax arrears from previous properties and years can be included in bankruptcy.
You cannot include the current year’s taxes, but previous years can be placed and discharged in bankruptcy.
So this may of some help to those with past arrears to the council and bankruptcy is the strongest option for them.
And of course if you own property, get expert advice
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