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Help with serious Council Tax Arrears

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  • Help with serious Council Tax Arrears

    Dear all,

    Please forgive a newbie if this is in the wrong place.

    I am seriously concerned about my Council Tax arrears, we still have these from 2009 and have several liability orders against us which we are trying to manage.
    I have had lots of periods of unemployment / low wage and currently are in serious financial hardship, I have only a temp job on NMW and struggling to just survive, even with this the authority are taking 7% or weekly earnings against Liability Order.

    I have gained some inform from the Money Saving Expert site about the potential to have the arrears written-off due to serious hardship (details of this info below) and wondered if this is correct and how can I go about trying this? Can I go back to court and have a hearing in front of a judge the plead my case?

    We are struggling with serious debt of utilities as well, so ALL our priority debts are causing loss of sleep and depression now.

    I anyone can give any advice it would be truly welcomed.

    Many thanks in advance

    David

    Details from MSE website:

    Regulation 13A Local Government Finance Act 1992

    This regulation was inserted into the above act by the Local Government Act 2003.

    "13A Billing authority's power to reduce amount of tax payable

    (1) Where a person is liable to pay council tax in respect of any chargeable dwelling and any day, the billing authority for the area in which the dwelling is situated may reduce the amount which he is liable to pay as respects the dwelling and the day to such extent as it thinks fit.

    (2) The power under subsection (1) above includes power to reduce an amount to nil.

    (3) The power under subsection (1) may be exercised in relation to particular cases or by determining a class of case in which liability is to be reduced to an extent provided by the determination."




    These are the explanatory notes attached to the Local Government Act 2003. Regulation 13A was inserted by Section 76 of the LGC 2003.

    Section 76: Billing authority's power to reduce amount of tax payable

    150. Under the LGFA 1992, dwellings may be exempt from council tax if they fall within one of the exempt dwelling classes set out in an order made under section 4 of that Act (S.I. 1992/558). The amount of council tax payable may be subject to a discount under section 11 (where there is one or no resident, or all, or all but one of, the residents fall to be disregarded), or in Wales, under section 11 to the extent that the authority has not exercised the discretion under section 12 to reduce the discount. Finally, the amount may be reduced through the effect of regulations made under section 13 of the LGFA 1992, e.g. where it is occupied by a disabled person: see the Council Tax (Reductions for Disabilities) Regulations 1992 (S.I. 1992/554). All of these exemptions, discounts and reductions are prescribed in orders or regulations made by the Secretary of State, or in Wales, the National Assembly for Wales.

    151. Billing authorities do not, at present, have a discretion to grant further discounts and exemptions, or to remit or waive council tax on hardship grounds. Authorities do not have the power to respond to hard cases which do not fall within any of the centrally prescribed categories.

    152. Section 76 inserts a new section 13A into the LGFA 1992 which will give billing authorities in England and Wales a broad discretion to reduce the amount of council tax payable as respects a dwelling, to such extent as they think fit. Subsection (2) of the new section 13A provides that this may include reducing the amount payable in respect of a day to nil.

    153. Authorities may exercise this power in individual cases (e.g. individual hardship, in cases where the taxpayer is not eligible for council tax benefit, for example, where the dwelling is not their sole or main residence). Or they may determine classes of case in which liability is to be reduced (i.e. the equivalent of authorities determining exempt dwellings classes, or reductions in circumstances other than those prescribed in regulations under section 13 of the LGFA 1992).
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  • #2
    Re: Help with serious Council Tax Arrears

    Welcome to legal beagles I can not answer your query myself but wanted to reassure you that someone will be along shortly who will have a wealth of knowledge in this area
    nic xo

    Comment


    • #3
      Re: Help with serious Council Tax Arrears

      You say you have several Liability Orders, is it possible you can list what they are, and are these the sums acknowledged by the Council? I assume the 7% you allude to is an Attachment of Earnings, is this the only enforcement action taken against you?

      I think you may struggle with hardship issue until all further avenues have been explored. Have you provided the Council with a comprehensive I&E? Do you have any non-priority debts - loans, credit or store cards etc - you would probably be expected to reduce these to the bare minimum?

      Comment


      • #4
        Re: Help with serious Council Tax Arrears

        Thanks for your reply, I have some other non-priority debts, but these have been frozen and at this time, I am trying to get them written off also.

        I have provided to the council a thorough budget for my household compiled with assistance from National Debtline.

        Currently, the council are enforcing an attachment of earnings order for one judgement from Oct 2009 for £295.86, the second is from Jun 2010 for £1530.08, there is another one, but don't have this info at hand.

        Thanks
        David

        Comment


        • #5
          Re: Help with serious Council Tax Arrears

          I doubt the Council will write these off, after all they are getting something from you even if it is little. Also it seems as if they have not used other enforcement action - Bailiffs, charging order - if applicable. Don't forget if you own your own home they could make you sell it or even make you bankrupt. I would imagine the best they may do is to reduce the band you may be in. If you have been in touch with National Debtline they may be able to speak to the Council for you and negotiate on your behalf.

          Comment

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