Council tax debt and arrears can accumulate quickly, and if left unaddressed, they can lead to serious consequences such as legal action, bailiffs, and even the loss of your home.
*An IVA may not be suitable in all circumstances, fees apply, your credit rating may be affected
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Council tax arrears occur when you fail to pay the full amount of council tax that you owe to your local authority. Arrears can accrue if you miss one or more monthly payments, or if you fail to inform the council of a change in your circumstances that affects the amount you owe.
If left unaddressed, council tax arrears can lead to serious consequences, including legal action, court costs, and even the possibility of imprisonment in extreme cases. Arrears can also affect your credit rating and make it harder to get credit in the future.
Fortunately, there are options available for resolving council tax arrears. You may be able to set up a payment plan with your local authority, apply for council tax support or a reduction, or seek advice from a debt management agency. It’s important to address council tax arrears as soon as possible to prevent the situation from becoming worse and to protect your financial stability.
Here are some benefits of speaking to a specialist debt advice company like The Advice Centre when you’re struggling to pay council tax:
We provide assistance with a wide range of debts, even if they are not listed above. Our debt help experts can explain all available debt solutions and work with you to find a payment plan that fits your circumstances and helps you clear your debt. Don’t worry if your debt isn’t listed – we can help you with all types of debt.
Council tax debt can accrue in several ways, including:
Late payment of council tax bills – If you miss a payment or are late in paying your council tax bill, you may incur additional fees and interest charges.
Incorrect billing – Sometimes, council tax bills are calculated incorrectly, which can lead to underpayment or overpayment. If you have been undercharged, you may accrue debt when the shortfall is identified, and the balance is due.
Change in circumstances – If your personal or financial circumstances change, such as losing your job or going through a separation or divorce, you may find it difficult to keep up with your council tax payments, which can lead to debt.
Disputes with your local council – If you dispute the amount of council tax you are being charged, you may withhold payment until the dispute is resolved. If the dispute is not resolved in your favour, you may have accrued debt during the period of non-payment.
Yes, it is possible to be taken to court for council tax debt. If you have not paid your council tax and have not made arrangements to pay it off, your local council may take legal action against you to recover the debt.
The council will first send you a reminder notice if you miss a payment, followed by a final notice if you continue to miss payments. If you do not pay the amount owed after receiving a final notice, the council can apply to the Magistrates’ Court for a liability order.
A liability order is a court order that confirms the amount of council tax you owe and gives the council powers to recover the debt, such as using bailiffs or taking money directly from your earnings or benefits.
Yes, if you have council tax debt that you have not paid or made arrangements to pay, bailiffs or enforcement agents may be sent to your home by your local council or the court.
Bailiffs or enforcement agents have the authority to take control of your goods and sell them to pay off your debt. They may also clamp your vehicle or take money directly from your earnings or benefits.
However, before bailiffs or enforcement agents can visit your home, they must first send you a letter called a Notice of Enforcement, which gives you seven days to pay the debt in full or make a payment arrangement with them. If you do not respond to the Notice of Enforcement, the bailiffs or enforcement agents may visit your home.
No, council tax debt will not directly affect your credit score, as it is not included in credit reference agency reports. However, if you have council tax debt that you have not paid or made arrangements to pay, your local council may take legal action against you to recover the debt, which could result in a County Court Judgment (CCJ) being issued against you.
A CCJ is a court order that confirms the amount of debt you owe and gives the creditor powers to recover the debt, such as using bailiffs or taking money directly from your earnings or benefits. A CCJ can have a negative impact on your credit score and make it harder to obtain credit in the future.
It’s important to address council tax debt as soon as possible to avoid legal action and further consequences. If you are struggling to pay your council tax, it’s important to contact your local council or a debt advice agency for support and advice on your options.
There are several ways you can get help with your council tax debt:
It’s important to take action as soon as possible if you are struggling to pay your council tax. Ignoring the debt or failing to make arrangements to pay it can result in legal action, bailiffs, and other consequences. By seeking help and advice, you can take control of your debt and work towards becoming debt-free.
It is indeed possible for council tax debt to be written off, although the decision to do so is at the discretion of your local council and will depend on your specific circumstances. If you are struggling to pay your council tax debt, the best thing to do would be to seek advice from a professional source such as The Advice Centre, who can help you understand your options.
Depending on your situation, you may be eligible for an Individual Voluntary Arrangement (IVA), which is a legally binding agreement between you and your creditors to repay your debts over a set period of time. An IVA can help you to manage your debt and avoid further action such as bankruptcy, but it is important to seek professional advice before making any decisions.
Overall, if you are struggling with council tax debt, it is important to seek advice as soon as possible to avoid further action and to explore all available options. The Advice Centre can provide you with guidance and support to help you manage your debt and achieve a more secure financial future.
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Adam Southard is authorised as a Licensed Insolvency Practitioner in the United Kingdom by the Insolvency Practitioners Association, We only provide advice after completing or receiving an initial fact find where the individual(s) concerned meet the criteria for one of our insolvency solutions, therefore, all advice regarding Individual Voluntary Arrangements (IVA) is given in reasonable contemplation of an insolvency appointment.
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