Can anyone tell me what is going on with my Council Tax ?

Get expert opinion. This is the place for new questions to be posted.
8 posts Page 1 of 1
 
 

formidablelady

User avatar
Posts: 19
Joined: Sat May 14, 2011 1:09 pm
Location:

Post by formidablelady » Mon Aug 03, 2015 6:28 pm
I was told my Council Tax was included in my IVA for the first year. Rang Council Tax today as they are showing arrears of �1948 for last year. Creditfix has paid 4 odd amounts totalling �45. Can anyone tell me whAts going on?
 
 

lifenoteasy

User avatar
Posts: 3248
Joined: Thu Feb 05, 2015 2:26 pm
Location: United Kingdom

Post by lifenoteasy » Mon Aug 03, 2015 6:38 pm
The way I understand it is that because of the way that council tax is structured as you go into an Iva it is a debt.

Cf will have sent a proportion of what is owed and treated them as s normal creditor.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
 
 

Adam Davies

User avatar
Posts: 14596
Joined: Thu Mar 29, 2007 12:21 pm
Location:

Post by Adam Davies » Mon Aug 03, 2015 6:45 pm
Hi and welcome

The payments from Creditfix are dividend payments from your IVA so quite normal
The council tax debt balance will be written off at the end of your IVA

Regards
Andam Davies
 
 

Foggy

User avatar
Posts: 33396
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Mon Aug 03, 2015 6:55 pm
Council tax is due in advance in April each year. As a service the councils allow this to be paid over the year in installments. As such it is a debt which some IP's include in the IVA ( many don't and treat it in the same way as things like car insurance .. they ignore it and allow for it in expenses).

To my mind including it causes angst between you and your council which is not needed and at a bad time in any event.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

lifenoteasy

User avatar
Posts: 3248
Joined: Thu Feb 05, 2015 2:26 pm
Location: United Kingdom

Post by lifenoteasy » Mon Aug 03, 2015 7:53 pm
Foggy - totally agree plus there is a principle linked to not taking money out of the public purse by doing so (not the person in the IVA's fault).
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
 
 

formidablelady

User avatar
Posts: 19
Joined: Sat May 14, 2011 1:09 pm
Location:

Post by formidablelady » Mon Aug 03, 2015 8:04 pm
Thank-you for your reply. I have now been told they get 2.66 pence in the pound like my other creditors and the amount is correct.
 
 

formidablelady

User avatar
Posts: 19
Joined: Sat May 14, 2011 1:09 pm
Location:

Post by formidablelady » Mon Aug 03, 2015 8:12 pm
Now i am starting to panic as this will go down when council tax start s being taken out. I am not sure why it's so little as we are paying £800 into the IVA. Myself and my hubby have separate IVAs not sure why. Is it because the IVA company take out their fees initially. Sorry for all the questions I have anxiety and depression and this is not helping.
 
 

lifenoteasy

User avatar
Posts: 3248
Joined: Thu Feb 05, 2015 2:26 pm
Location: United Kingdom

Post by lifenoteasy » Mon Aug 03, 2015 8:17 pm
Hi

They take out their fees and apportion an amount to creditors based on what is owed.

An IP discovered a legal loophole regarding council tax and for a lot of us it is a loophole that sticks in the throat (not just the public purse but why put someone into arrears with an organisation they never had problems with).

You are covered and are doing everything correctly but in the long term councils are going to kick back with other people going into IVA's.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
8 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”