IP Advice on the IVA Council site

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size5 Industry Expert

Posts: 3104

Joined: Fri Nov 23, 2007 7:22 pm

by size5 » Fri Nov 23, 2007 7:47 pm

I am new to this forum and I have with interest the posts on this site and on the IVA Council site. The following proportion of a reply by Nick Peat, IP, caught my eye:

"Council tax is hated by everybody. If you cancelled your direct debit then this would help your cash flow and any arrears accruing up to the date of the bankruptcy order would be written off with the rest of your unsecured creditors."

He seems to be encouraging people to stop paying their council tax.

What I want to know is this, I always thought that none payment of council tax was a criminal offence, potentially leading to a custodial sentence. Am I right in that, or is it good advice to stop paying it? If, as I suspect, this is irresponsible advice, can this man be held accountable for this advice and if so by whom?

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Cybus: Posts: 392; Joined: Fri Jul 13, 2007 7:44 pm; Location: United Kingdom

by Cybus » Fri Nov 23, 2007 7:59 pm

Without knowing the context of his post, I would suggest it would be irresponsible to cancel direct debits for Council Tax. No one should actively encourage non payment of Council Tax, as hated as it may be.

Tell it like it is.

Tell it like it is.

Cybus: Posts: 392; Joined: Fri Jul 13, 2007 7:44 pm; Location: United Kingdom

by Cybus » Fri Nov 23, 2007 8:16 pm

I shall post this in this particular thread. It is a statement taken from The Insolvency Service Website

Insolvency Service statement regarding the IVA Council

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The Insolvency Service would like to make it clear that we are in no way associated with an organisation called the IVA Council.

IVAs are a flexible and effective means of dealing with debt. For debtors they provide protection from creditors, debt forgiveness, flexibility in terms of what assets are included, and none of the restrictions, which apply in bankruptcy. For creditors they provide a better return than could be obtained in bankruptcy.

IVAs allow debtors to repay their creditors that which they can reasonably afford and resolve their financial problems, and are supervised by licensed and regulated insolvency professionals.

The principal statutory alternative to an IVA is bankruptcy. Bankruptcy should always be the last resort as the debtor will lose control of their assets and will be subject to bankruptcy restrictions, potentially up to 15 years.

Consequently The Insolvency Service does not condone any implication that people in IVAs should stop paying and enter bankruptcy. If you have had any communication from the IVA Council or other third parties suggesting that you stop making payments under your IVA you should discuss this with the supervisor of the IVA and seek advice from professional, qualified advisers before taking any action.

Tell it like it is.

Last edited by Cybus on Fri Nov 23, 2007 8:17 pm, edited 1 time in total.

Tell it like it is.