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I went bankrupt in October this year and included my Water Rates bill for this year (sent in March 2006). The water company got a county court judgment against me early in November 2007 (although I had sent them a letter regarding my bankruptcy). I phoned them and gave me my bankryuptcy details and told them I had included their debt in my petition, so they should not have taken further action. I have just received a new bill that is dated for the day after my bankruptcy was made, up until 31.03.08 (so pro rata from the original bill). Can they legally demand I pay this part of the debt? If so, why is this allowed when they were able to obtain judgment for the full year's bill in the County Court last month? I accept I should pay from 01.04.07 as I have obviously not received the bill for that year yet (i.e. prior to my bankruptcy), but the water company had previously refused me the right to pay 07/08's bill by installments. This is quite a worry for me as I hadn't budgeted for this new bill, am on maximum Working/Child Tax Credits and have been on half pay due to ill health and had £160 less than my full pay this month.

Thanks for your help.

Sarah

P.S. I could also end up in the same position with my Council Tax, but have not received anything like this demand from the Council yet (I also had a liability order made for this year's Council Tax).

This is right. The bankruptcy only covers debts up to the date of the order, after this you are liable for your bills, and so will have to pay your council tax and water rates for the period from the date of your order to the end of their current year in March 08.
You should contact the authorities and make an arrangement to pay, even if it means you have to carry some of it forward to next year - I don't know if they allow this, but can be no harm in asking.

Queenie

From the offical receivers website under the freedom of infomation act/ technical manual:

40.100 Water rates

Where water is supplied under a charges scheme that is rate-based rather than metered, the charges scheme usually provides that any standing charges are due and payable in advance on 1 April each year. Therefore the whole of that year’s charge, or unpaid balance at the date of the winding-up order or bankruptcy order , may be claimed in the proceedings, in addition to any arrears from previous periods. As the whole debt becomes due prior to the insolvency, it is a provable debt as defined in paragraph 40.12.

Thus, if a charge of £240 for water services made on a consumer is payable in full on 1 April 2000, and monthly payments of £20 are made on that day and on 1 May 2000, then a bankruptcy order is made against the consumer on 1 June 2000, the claim in the bankruptcy would be £200 (£240 - £40).

The water company cannot take steps to recover the balance of the debt, or to seek payment from a bankrupt for the continuing supply of water, until the following 1 April, the commencement of a new charging year. This should be taken into account by the official receiver in a bankruptcy when considering expenditure in the assessment of contributions to be made under an income payments order.

Charges for metered supplies are treated differently as, generally speaking, the meter will be read at or about the date of the winding-up or bankruptcy order and the provable claim based on that reading. New supplies will be paid for when charged. In cases of doubt, the official receiver should ask the water company to provide a copy of its charges scheme for scrutiny.

I stand corrected. You are right, they cannot ask you to pay the water rates according to the technical manual. I was unaware that they treated water rates in a different way from council tax. I would definately bring that up with the water authority.
Good luck with that, and let us know what happens.

Queenie

Hi
That is a strange one,the whole year is taken into account rather than the period upto bankruptcy
Strange

Andy Davie
IVA.co.uk Spokesperson and Website Manager

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Is it the same situation with council tax or do you have to pay from the bankruptcy date through to the next April?

Hi
No,I'm sure that Council tax is payable as normal from the date of bankruptcy
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp