Council Tax Debt Advice
Big or small, every debt problem can be solved
Council Tax Debt Advice
This section covers what you can do if you can't pay your Council tax
What action the Council can take against you.
What happens if you get a liability order.
How to deal with Council Tax bailiffs or enforcement officers.
And the help that is available if you have Council tax arrears.
If you can't make a Council Tax payment, make a list of everyone you owe money to (your creditors) and prioritise your debts so that you know which debts you need to pay off first.
Next draw up a personal budget so you can work out what you can afford to pay each creditor.
You can then contact your local council and offer to make regular payments you can afford.
When you reach an agreement it's important to honour it, so only agree to payments you can manage.
You should also find out whether you qualify for help, such as Council Tax Reduction.
Need help with your Council Tax debt?
Our specialists can quickly advise you on what to do if you have fallen behind with your Council Tax.
Simply call the team on 0800 36 88 133, or take the get out of debt test and discover your best solution.
What if I can't pay my Council Tax?
If you are unable to come to a payment arrangement with the council or if you make arrangements to pay but don’t, your council can ask the Magistrates’ Court for a ‘Liability Order’ (a demand for you to pay the full amount you owe, plus costs).
You have the right to attend the court and offer evidence as to why you are not liable for the debt.
Even if you decide not to attend court, you should speak to the council or, if you prefer, your Local Citizens Advice Bureau.
The council will try to come to a reasonable arrangement with you for payment but they cannot do that unless you contact them.
The consequences of ignoring a Liability Order
If the court makes a Liability Order against you, your council can take enforcement action against you in order to recover the debt.
This will usually mean either deductions from wages and benefits or the use of bailiffs, although bankruptcy and charging orders are other options.
Deductions from wages
Your council can order your employer to deduct a regular amount from your wages toward your unpaid Council Tax. This is called an Attachment of Earnings. If this causes you financial hardship, you can ask your council if they're willing to accept smaller payments.
Deductions from benefits
Your council may be able to apply for deductions from your benefits. £3.65 a week can be taken from income support, income based jobseekers allowance, income related employment and support allowance or pension credit.
Council Tax Bailiffs
Your council can send bailiffs to your home to seize property to sell.
The money raised goes towards paying your debt, plus costs.
The billing authority must send a letter two weeks before the bailiff’s first visit stating how much money you owe under the Liability Order.
You can contact the Council and the bailiffs and offer to come to an agreement on payments.
It’s important to do this straight away, because if the bailiffs make a visit their costs could be added to your bill.
Court hearing for Council Tax Arrears
If your council has tried using bailiffs but your Council Tax still isn’t paid in full, they may apply to the Magistate’s Court for a warrant committing you to prison.
The council will only take this step when other efforts have failed.
Before issuing a warrant of commitment the court must hold a means enquiry with you present.
A warrant will only be issued if the court is satisfied that the failure to pay is the result of wilful refusal or culpable neglect.
The maximum period of imprisonment is three months.
The court may decide to postpone the period of imprisonment on certain conditions, normally relating to payment of the debt over a period of time.
The court also has the power to remit all or part of the debt.
What to do next
Need help with your Council Tax debt?
Our specialists can quickly advise you on what to do if you have fallen behind with your Council Tax.
Simply call the team on 0800 36 88 133, or take the get out of debt test and discover your best solution.
How to deal with a Debt Collection Letter from Phillips & Cohen Associates
Have you received a letter from Phillips & Cohen Associates. In this guide we'll show you a common letter they send, the tactics they use and how to deal with...
A Guide To An Attachment of Earnings Order
Have you received a letter threatening an attachment of earnings. In this guide we explore what an attachment of earning order is, how they work and how to defend...
Join 100,000s of Money Advice Onliners who read our WEEKLY email. Get our round up of ALL the best money saving tips, best buys, discount vouchers and competitions. Don't miss out!
We hereby promise to be responsible emailers.
Moneyadviceonline.co.uk © 2019 All right reserved.
Moneyadviceonline.co.uk is a comparison service that acts as an introducer to companies who offer regulated financial advice (FCA approved). Our website is completely free for you to use but we may receive a commission from some of the companies we feature. Moneyadviceonline.co.uk does not provide any advice and we are not liable for any financial advice provided by, or obtained through a third party. As with any investment, the value of investments can fall as well as rise and maybe worth less than what was paid in. Past performance is not an indicator of future results. Moneyadviceonline.co.uk does not provide any regulated debt activates in relation to debt counselling or adjusting. You can also get free impartial debt advice by following this link to the Money Advice Service.