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I am about to be made bankrupt (27 August 08) for Council Tax Arrears of about £12,000. Although, I have other debts from 3 creditors for about £16,000, the creditors are not the one issuing the bankruptcy notice. What can I do. I can afford to pay between £300 and £500 a month.

Hey Michael, welcome to the forum. If you can't come to an arrangement with the council tax then when you go bankrupt all of your unsecured debt will be included. Have the council tax people contacted you to try and come to an arrangement without going BR?

Welcome along michael_s, you need to speak to a professional as soon as you can so that your situation can be assessed according to your individual circumstances.

Please visit www.iva.com and have a look around at the providers, read some reviews etc Take time to speak to 2 or 3 different providers and then make your decision from there.

Regards.

Hi there
For a Council to make you bankrupt they must be pretty sure they will get monies back as they are spending public money to do it - i am guessing that you own a property and have equity in it.
it is very unlikely that they would stop the petition for anything other than full payment.
Can i ask why you owe £12000??? is it just Council Tax or other debts within the Council??

You could try an IVA - although if you could afford to make payments of £500 per month then it would probably be rejected on grounds that you could pay all of your debts in full over a five year period.

With the threat of bankruptcy however, where creditors may get a much lower return, an IVA could present an attractive option. Do make sure that you provide in full for all of your expenditure - including contingencies - so that payments into the future are affordable. An insolvency practitioner would be able to help you arrive at the right decision and can explain all of the options currently available to you - including bankruptcy.