Writing-off long standing debt

[davidrichards27]

Hi all, thanks for taking the time to read this.

We currently have, due to health and employment issues a debt to our council of approx £6k going back a few years.
They have, despite my protests and not being able to get to court due to ill-health, slapped a Charging Order on my wife's shared-ownership property - I was not aware they could do this???

Anyway, I am struggling with lots of priority debts, unemployment and mental-health issues (depression, stress and anxiety), and have worked out at the current deductions, it is likely to take decades to repay this debt whilst still sufferring with the stress of financial pressures.

I read online about local authorities being able to write-off debts where persuing them could case harm to the debtor - I feel this current issues causing me serious mental and physical illness could be grounds for this.
http://www.legislation.gov.uk/ukpga/1992/14/section/13A

13ABilling 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) aboveincludes 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
Individual councils may have separate policies on exercising its discretion to reduce or write off a liability, so you need to put forward strong and persuasive grounds that continuing with enforcement of the liability is not in the best interests of the council or the taxpayer.
Example grounds can be.
The liability is in all probability never going to be paid
Enforcing the liability will result in damages against the authority or council
Enforcing the liability may result in harm to the taxpayer

I have found the above online and would welcome ANY advice on this and whether I am clinging onto hope against hope?

Many thanks
David

[lgfa92]

Re: Writing-off long standing debt

The Local Authority can reduce or entirely remit the debt, you are correct (and in some cases there is a right of a appeal to a tribunal) under Section 13a http://lgfa92.co.uk/section-13a-write-off/

From the council's point of view they can obtain a charging order on a jointly owned property but they won't usually be able to force a sale on it as they could on a solely owned property - unless the joint owners are those who owe the debt.

Craig

[davidrichards27]

Re: Writing-off long standing debt

Dear Craig,

Thanks for the reply, do you have any idea how I could go about starting the process to try and get this debt written-off under Section 13?

Removing this liability and charging order would be on massive relieft to me.

Any ideas will be gratefully received.

Many thanks
David

[lgfa92]

Re: Writing-off long standing debt

Dear Craig,

Thanks for the reply, do you have any idea how I could go about starting the process to try and get this debt written-off under Section 13?

Removing this liability and charging order would be on massive relieft to me.

Any ideas will be gratefully received.

Many thanks
David

It would depend on your local authority - take on a look on their website to see if they have a process listed. If t hey don't then send a letter for the attention of the Council Tax Manager. Chase it if they don't reply within 14 days or so.

Craig

[Debt Camel]

Re: Writing-off long standing debt

Are they still chasing for this debt to repaid, or has that stopped now there is a charging order?

Have you taken debt advice on the rest of your debt situation?

[davidrichards27]

Re: Writing-off long standing debt

They are not chasing it, but they are still looking for regular payments towards clearing it. At the moment, I am not working and looking for work, so they are taking a 'token' payment by making a deduction from my Housing Benefit to put towards it.

I am sick and tired of all of it, I am taking advice from my local CAB regarding the rest of my debts, but really want this 'monkey off my back' and if there really IS a way to get rid of it, I would really been keen for some expert guidance about how to go about this.

Main issue is that I cannot afford a solicitor to speak to and don't think this type of issue would be covered by legal aid....so in a bit of a catch22!!!

[Debt Camel]

Re: Writing-off long standing debt

A Charging Order is normal method of enforcement for a large council tax debt.

What is the advice about the rest of your debts? I'm sorry but you can't hope to handle a priority debt in isolation from the rest of your situation.

What is your wife's financial situation - is she working? does she also have debts? was she also liable for these CT arrears?

[davidrichards27]

Re: Writing-off long standing debt

i appreciate your patience, I will try and post a summary tomorrow and then see what you feel you can advise.

[lgfa92]

Re: Writing-off long standing debt

Main issue is that I cannot afford a solicitor to speak to and don't think this type of issue would be covered by legal aid....so in a bit of a catch22!!!

You'd be very lucky to find a solicitor with council tax knowledge - few and far between.

I regularly used to have to tell solicitors how council tax legislation worked - it's far from their area of expertise. It usually just went along the lines of "I'm a solicitor so you will do X, Y, Z" and it then required a discussion to point out where they were wrong.

Craig

- - - Updated - - -

They are not chasing it, but they are still looking for regular payments towards clearing it. At the moment, I am not working and looking for work, so they are taking a 'token' payment by making a deduction from my Housing Benefit to put towards it.

I am sick and tired of all of it, I am taking advice from my local CAB regarding the rest of my debts, but really want this 'monkey off my back' and if there really IS a way to get rid of it, I would really been keen for some expert guidance about how to go about this.

Main issue is that I cannot afford a solicitor to speak to and don't think this type of issue would be covered by legal aid....so in a bit of a catch22!!!

They have no legal powers to deduct Housing Benefit for Council Tax arrears - totally separate system - so you need to check that out.

Craig

[Adamna]

Re: Writing-off long standing debt

The Charging Order should put a stop to recovery in other ways, unless you agree to it. It should only have been made if your wife was involved in the debt (joint and several liability). They are unlikely to force a sale, it is only to secure the debt. In fact, if the value of the property is high and it's disproportionate to the debt they would not be able to. One benefit to you should be that it gives you breathing space without other means of recovery to try and sort it.
The council should have a published policy, and application forms for Section 13A applications. Try and get both. Each case should be considered on its own merits, the policy should not limit the consideration.
Craig is correct, solicitors have no clue. Don't waste your money on them.
Good luck!