www.iva.co.uk

I am some way through my IVA.

I was a bit surprised to receive a demand for council tax on a property which I once owned, subsequently repossessed and sold.

The council tax demand is for a significant sum and I did enjoy some exemptions ( empty ++ ). There are no other reliefs available to me.

The council is aware of my IVA position, and I also received an exemption for some time for that. This invoice relates to a period of ownership post commencement of IVA, but before repossession.

The council have given me some time to pay, but this is difficult.

Here's the thing. The advice I received when phoning the council is that failure to pay the full amount will result in them applying for a liability order. I don't think there's any way I can stop that.

I wonder whether I need to be worried about this. I am advised that it does not show up on any credit file. The council officer explained that the council would not be in any position to discuss a deal with me unless and until they had a liability order - which process incidentally will add £110 to the total owed.

I am wondering whether I can let them get on with it and not be worried. What can they do?

Have a chat to your IP. They may be able to include the debt into the iva or make allowances for you to repay it outside the iva.

Letting it fester probably won't do you any good in the long run.

Hi Mark,

I would definitely speak to your IP about this but I'd also nip down to your local CAB office and see if they can help at all.

Have a read here http://www.bailiffadviceonline.co.uk/counciltax.htm

You need to check with your IP about how much the council has claimed in the IVA and for what periods. If they obtained a liability order pre IVA that may incorporate the liability for the whole tax year in which the IVA was approved. Your actual post IVA debt may not be that great and your IP could allow a payment break to clear it.

Thanks for your comments.
I anticipate this going a slightly different way. I would be glad to hear alternative views.
1. The debt was post IVA. The liability order will be obtained post IVA, so it seems to me that inclusion in the IVA is not a possibility.
2. Merlin's link was most informative. It discusses a period of 14 days written notice post the liability order, during which time some sort of arrangement may be struck with the council, but critical is to get this discussed before they push it on to the Bailiff.
Although I would not expect a council to be charitable, they might have a policy on how they deal with people in IVA.
3. One question I have is whether I might be able to pre empt the liability order, perhaps by writing to the council and accepting the liability, the only reason for that being to prevent the court processing costs exceeding £130 being added to the bill and inflating the liability.

Comments welcome