Write Off Council Tax Debt
Stop all creditor contact now and write off your unaffordable council tax debt with an IVA, from £70 per month
Hit With a Council Tax Bill You Can’t Afford to Pay?
The most common debt that we deal with on a daily basis is council tax debt. The council take a super-aggressive attitude to collecting money owed to them. They use magistrates courts to issue quick CCJ’s against people who owe them money. Then they pass these debts to bailiffs (enforcement agents) to collect them.
What does that mean for me?
If you have received a council tax bill which you can not afford to pay, or is late – you have to act now. The longer you leave a debt with the council, the more aggressive the debt collection becomes. Bailiffs have the right to repossess vehicles and valuables from your home.
The good news? We can stop them.
When you first contact our friendly team, we will be prepared to deal with any debt issue. We will take a look over your entire financial situation and tell you exactly how we can stop any further action.
We act on your behalf and we are always on your side. This means that we will be able to take complete control of your debt situation without telling anybody and work with you on a long term solution to the problem.
Can I Write Off Council Tax Debt?
Council tax debts work differently to other unsecured debts. When the council are owed money, they will quickly apply for a county court judgment (CCJ). Once this has been granted, they will immediately instruct bailiffs to visit your property to repossess goods to the amount of the outstanding debt amount. This includes any vehicles in your possession.
The bailiffs add on their own fees and you will receive a low valuation for the goods in your property.
If you have received a council tax bill you can not afford to pay, then you need to act quickly. We deal with thousands of people who are struggling to pay their council tax bill and we will provide you with free, confidential advice to stop your debts escalating any further. Contact us today, before it is too late.
Have You Recently Been Contacted Regarding Outstanding Council Tax Debt?
But once this debt begins to accrue, it can be tough to know where to turn. And if you’ve recently received contact from your local authority, you may find yourself asking one or more of the following questions:
- can I get a council tax arrears payment plan?
- what happens to council tax debt after 6 years?
- is it possible to get council tax debt written off?
- can an IVA help with council tax debt?
That’s why we’ve put together this know-it-all guide, to answer your questions and provide clear, actionable advice on how to regain control of your debts, starting immediately.
We’ll break it all down for you, with no-nonsense practical advice, so you know exactly what you can do to fix the situation, before it spirals further out of control.
Let’s get right to it.
I Owe Council Tax – What Can I Expect?
In fact, your council is likely to use a wide range of enforcement methods to reclaim the money that they’re owed. And if you ignore your council tax arrears, you can expect the following to become realistic prospects:
- Home visits
- Removal of goods
- Enforcement agents visiting your home with the rights to force entry
- County court proceedings
So What Should I Do? Help With Council Tax Debt
But don’t take the opposite approach. The worst thing to do at this stage is to procrastinate or run away from the issue, in hopes that it’ll disappear.
Plus, as council tax payments are often spread over a period of 10/12 months, if you act quickly you may still be able to restore your right to make monthly installments. But even if you can’t find a payment arrangement that works for you, showing a willingness to engage with the process can still help you later down the line.
When you first receive contact about council tax arrears, get in touch with us. We will be able to provide you the support that you need to keep bailiffs from accessing your property and the issue escalating.
What Are The Consequences of Not Repaying Council Tax Debt?
- when you miss paying your council tax or choose not to make a payment, your local council sends you a reminder and gives you 7 days to get it paid
- fail to do this and you can expect to receive a ‘final notice’ that demands payment of the entire year’s council tax
- if you miss payment following the final notice, then the council can take legal action, that means income deductions and bailiffs
What Are Income Deductions?
- Income Support
- Pension Credit
- Employment & Support Allowance
- Universal Credit
- Jobseekers Allowance
Council Tax Bailiffs
The next stage is a dreaded visit from the bailiffs. We’re often asked whether it’s likely to be visited by bailiffs for council tax debt.
The truth? Yes.
Bailiff visits are a harsh reality of outstanding council tax arrears, and of course this is never a pleasant experience. The good news is that they won’t appear completely out of the blue. In order for Bailiffs to visit, a court order is needed, which means you’ll be notified in advance. You should receive 7 days notice before bailiffs arrive.
Bailiffs will then try to access your property with the aim of seizing goods to pay towards the debt, on behalf of the council.
It’s possible you’ve already received this notice, and are panicking about what to do. Maybe you’ve even had a visit from a bailiff already.
If so, we strongly advise that you immediately contact a debt advice service, like IVA Advice. You can do this free of charge, and receive quick, independent advice specific to your circumstances.
In any case, do not let bailiffs into your house. We can’t stress this enough.
What Can A Bailiff Do?
When a bailiff seizes goods they’ll first make a list of what you own so they can take things away and sell them in the future, if you fail to come to a satisfactory agreement on payment. They’re also notoriously difficult when it comes to negotiating and will likely demand high payment amounts to keep from removing your goods.
Council tax bailiffs have the right to:
- visit your home
- enter your home (peaceful entry) with a day’s notice
- remove goods from your house
- clamp vehicles at your property
- issue county court judgments (CCJs) to your credit file
Which bailiffs collect debts for council tax?
If you are being chased by another company for council tax arrears, they can be dealt with the same as the above companies. So continue reading for more information.
I’m Worried – Will Bailiffs Force Entry to My Home?
This means if you have left a door or window open, or if you open the front door; the bailiffs can push their way into your property.
While it’s unlikely that a bailiff will force entry into your house for unpaid council tax debts, they will sometimes enter a property through a door that has been left unlocked.
Again, it is highly advised to contact a debt advice service that can help you reach a solution that doesn’t involve the surrender of your possessions.
This is much better than forfeiting your belongings, or hoping they’ll eventually give up.
Council Tax Arrears – How Far Back Are You Liable?
But is that really the case?
Generally speaking, there is no limit to how far back the council can enforce debt collection on your council tax arrears. This means that councils are within their rights to collect debts owed to them for an unlimited amount of time.
It is true that the council can only pursue a debt for 6 years after the last contact with you. But this usually isn’t an issue for the council, as their systems automatically file a CCJ, and refer debts to magistrates court 7 days after non-payment.
As such, your debt will not be automatically written off after this period.
Can I Go to Jail for Not Paying Council Tax?
But is this just scaremongering?
Here’s the deal – if you completely refuse to pay for your council tax, you may be sent to prison.
The term can be as long as 3 months and if you are able to make your arrearage payments and simply refuse to, then your local authority may ask that you be committed to prison.
However, please remember that this is extremely rare.
While there have been a few cases within the UK where people were jailed over non-payment of council tax, this is an unlikely outcome.
Because before this can happen the magistrate must be thoroughly convinced that you are ‘willingly refusing’ to pay your tax or that you’ve been ‘culpably neglectful’ in doing so.
In simple terms, this means you had the means to repay the debt but neglected to do so. And so making regular payment, no matter how small, is a good defence against imprisonment. It shows the magistrates you are sincerely trying.
Overall, while it’s unlikely that you’ll go to jail for not paying your council tax, there have been many cases in which this has happened.
As such, you should seek immediate independent financial advice when you fall into arrears with your council tax.
Mention of bailiffs, court dates, and prison, may sound scary.
If you’re like most, you’d prefer to get your council tax debt under control before things ever progress to this stage.
Bailiffs all operate under the instruction of your local authority – which has the power to call them off. With our professional advice, we can often get your local authority to cease bailiff action. Otherwise, expect frequent visits.
You should not follow advice claiming that you can avoid bailiff action through the use of misleading letters and technical jargon. We have years of professional experience in these matters and the truth is, it doesn’t work.
In fact, the only way to stop a bailiff in his tracks is to enter into an Individual Voluntary Agreement (IVA). Effectively, this functions as a council tax arrears payment plan, for a fixed period.
Once you’ve entered into an iva, the bailiff can not legally visit your property, and it is possible to eventually get your council tax debt written off. But you have to enter into your iva before they seize goods, so act quickly.
What’s an IVA?
With an iva you will have to pay back a percentage of your total debts for a period of 5 years. At the end of the 5 years, the remainder of your debt will be completely written off – leaving you debt-free.
So when you include council tax arrears into an Individual Voluntary Arrangement (or iva), it’s completely possible to write off a section of your council tax debt.
Still, there are some basic requirements you’ll need to meet…
Basic Requirements for an IVA
- you’ll need to have a total debt level of £5000 or over. This must consist of 2 or more creditors (people you owe money to)
- you must have a regular income of £800 or above
- your council needs to be on our list of approved councils. Some councils will allow you to pay back a small percentage of your council tax debts, others will insist on the full amount. It is important to speak to us to find out how your council votes.
Get IVA Advice Today
- Bolsover District Council
- Brighton & Hove
- Newcastle Under Lyme
- East Hampshire
- East Lindsey
- Newark & Sherwood
- Newcastle Under Lyme
- Kings Lynn & West Norfolk
- Kirkless Council (KPMG)
- Newcastle upon Tyne
- London Borough of Redbridge
- North Kesteven
- Redcar and Cleveland
- Reigate & Banstead
- Rochdale Borough Council
- Rugby Borough Council
- South Oxfordshire
- Surrey Heath Borough Council
- West Lancs Borough Council
- North East Lincolnshire
- Rhondda Cynon Taf Council
I Can’t See My Council – What Does That Mean?
It does not necessarily mean you can’t get your council tax debt written off.
So if your council is not listed, please get in touch and we will advise if your debt is eligible to be entered into an arrangement.
Which Debts Can Be Included In Your IVA?
All of the below debts can potentially be included in your iva:
- council tax (previous years and current year if in arrears)
- unsecured debts (overdrafts, credit cards, store cards, charge cards, catalogues, payday loans, unsecured loans, doorstep loans, credit unions, debts with CCJ attached to them)
- bailiff debts; e.g. Moorcroft Group, Lowell, Bristow and Sutor, Cabot Financial, Advantis, and PRA Group.
- previous utility supplier debts; e.g. gas, electricity, water
- previous service providers e.g. digital TV, mobile phones, landlines
- previous debts secured against an asset that has been repossessed
- vehicle HP and properties
- debts to family and friends.
- HM Revenue and Customs VAT, PAYE, Self-assessed tax, National Insurance
Debts That Cannot Be Included In Your IVA
Council Tax Debt Written Off? Get Started Today
But time is of the essence. You need to enter an iva before your goods are seized.
To get started right away, click here to use our helpful calculator and begin a FREE assessment of your circumstances.
IVA Frequently Asked Questions
What happens if I miss a council tax payment?
When you miss your first council tax payment, the council will start a collection process.
1) You will be sent a reminder. This will give you 7 days to catch up with your council tax payments in full. If you do not pay within 7 days, you will receive a second notice to pay in full. The council will only give you 2 payment reminders in one financial year.
2) If you miss your payment for a third time, the council will send you a bill for the entire financial year. This must be paid within 7 days.
3) If this isn’t paid, your account will be referred to bailiffs, for collection. a CCJ is usually applied to your credit file, which will last for 6 years.
4) The bailiffs will issue you with a 7 day warning to pay the account in full otherwise they will visit your home and try to repossess items to the value of the balance.
Can my council tax arrears be written off?
The councils do have the power to write off any arrears at their discretion. They will not do this on a voluntary basis though. They follow a very strict collection process which they do not deviate from.
If these debts are unaffordable, you will need to write them off with bankruptcy or an IVA. Both solutions are formal arrangements which will last for a defined term. At the end of the term your debts will be written off in full, leaving you completely debt free.
It is not guaranteed that your council will agree to an IVA, you can check this page for an updated list of councils who have been known to agree to IVA proposals in the past.
Will my items be repossessed for not paying council tax?
Bailiffs have the power to repossess items from your home in order to repay your council tax arrears.
The council will need to follow a strict process and abide by this. This usually includes:
1) Reminder letters
2) Annual bill in full, with a pre-action letter
3) CCJ applied
4) Referred to bailiffs
When the debt is finally referred to bailiffs, they will issue you with 7 days notice before they visit your property. If you are in this collection cycle, you should seek independent financial advice immediately to avoid further action.
Will an IVA help with unpaid council tax debts?
To be eligible for an IVA you will need to have over 75% of your creditors agree to the proposal.
Some councils approve IVA’s and some reject IVA’s. Check our page for the most recent information on which councils approve IVA’s.