www.iva.co.uk

Can an iva cover council tax and utilities debt

Council tax will be covered and probably utilities as well - however there will always be the risk with the latter that they then put you on a meter or ask that you get services elsewhere.

I didn't think council tax would be covered for some reason.

Council tax is always included and utilities should be. It can be difficult at times if your debt is to the existing supplier but the debt should be bound.

These days even if you have no arrears linked to council tax going into an iva will create that situation due to a court ruling.

Also bear in mind that if you are a council/social housing tenant arrears can be brought into the iva but action can still be brought against you to evict you.

Although the arrears are in the iva you are still in breach of your tenancy agreement by having the arrears.

We will never include rent arrears in an IVA for the existing domestic property as it can lead to eviction. Even in bankruptcy where it is clearly a preference, you are allowed to repay rent arrears if it jeopardises your home.

We may include rent arrears for a business as often the options are that the landlord accepts a percentage of the arrears or the business folds and he/she then has an empty unit and is liable for business rates.

...but there are some recent case examples where companies have included the arrears.

The company that Michael represents is more clued up than most.

Hi and welcome,

Council tax will be included up until the date of IVA approval but anything after that will have to be paid up to date.

kalis3 - it doesn't work like that anymore.

As council tax is effectively a future debt during the rest of the year it doesn't go back to normal until the following year.

Totally disagree with the reasoning but an IP proved it in court.

That's actually what I meant - just didn't word it properly!

I can barely string 2 words together this morning - I know the feeling:)

LOL!!!

I can see the logic as the debt does fall due in April. It is effectively a concession to pay over ten months but unlike car insurance for example there is little the council can do if they are included. An insurance company can cancel your policy so while it is credit it is allowed. A council could not refuse to lift your bins, turn off the street light outside your house or ban you from the swimming pool if they did not get paid!

But as it is a concession they can demand payment in one go.

True but they have no sanction if they do not get their money unless in following years they demand everything up front. Not sure if they could even do that to someone in an IVA but I suppose it is possible.