Council Tax and IVA's

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wakeywakey
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by wakeywakey » Sat Dec 30, 2017 4:56 pm
I don't understand the Council Tax being included in an IVA.
I think it just causes additional stress that we could all do without.
My IVA begun in July and I have paid no Council Tax since.
I have read that in April I will go back to paying Council Tax, so what happens to the arrears of approx £700?
I cannot imagine for a single second that the Council simply write them off.
What is people's experience with this?
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Foggy
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by Foggy » Sat Dec 30, 2017 5:16 pm
Personally I do not agree with the notion of including CT in the IVA. I feel it is causing a problem where none existed before. However, due to the ruling in a recent court case, this is deemed to be correct. The premise is that CT is actually due, for the year ahead, as a lump sum payable in the April --- it is only as a concession that we are allowed to split this over 10 monthly installments (kind of an interest free loan). The CT not paid in the first year or part year will, indeed, be written off. I wouldn't like to comment on how this places us with our ongoing relationship with the councils, but I doubt we are flavour of the month!
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kallis3
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by kallis3 » Sat Dec 30, 2017 5:39 pm
I agree with Foggy - it should not be included and mine never was. Hopefully you won't have any problems.
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Oya
Posts: 164
by Oya » Sun Dec 31, 2017 12:28 am
wakeywakey wrote:
I don't understand the Council Tax being included in an IVA.
I think it just causes additional stress that we could all do without.
My IVA begun in July and I have paid no Council Tax since.
I have read that in April I will go back to paying Council Tax, so what happens to the arrears of approx £700?
I cannot imagine for a single second that the Council simply write them off.
What is people's experience with this?

I am paying my council tax with my Iva for the first year. I think this new update and my council gave me no problem with that. I was told I would pay for the first year and after that I will pay it myself direct to the council. My Iva set up for £122 per month and my council tax £123 for 10 month added on original. Once I needed payment break to stolen vallet I still paid £123 for council tax.
Your payment should have been added on top of your Iva payment and paid to the council. I advice you should really check that with your IP.
redboxtree
Posts: 125
by redboxtree » Sun Dec 31, 2017 11:25 am
This is still relatively new but it is as Foggy says.

It is entirely likely that in new cases where someone states they intend to go intend an IVA between January - March each year that councils will seek the full amount for the next year in advance.

The current rule is taking from the public purse to cover personal debt and just shows that at times the law is an a!!.
wakeywakey
Posts: 23
by wakeywakey » Thu Jan 18, 2018 3:16 pm
Hmm. Not sure if I'm any the wiser.
I started in July and the CT payments were added to the IVA and spread out amongst creditors (I believe) So the Council will get some I suppose.
I mean couldn't they refuse to allow me the basic services like bin collection and.......Oh, I can't think of anything else they actually provide. How weird!
Can anyone think of something else I might use that they could take away through non payment?
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Foggy
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by Foggy » Thu Jan 18, 2018 4:29 pm
wakeywakey wrote:
Hmm. Not sure if I'm any the wiser.
I started in July and the CT payments were added to the IVA and spread out amongst creditors (I believe) So the Council will get some I suppose.
I mean couldn't they refuse to allow me the basic services like bin collection and.......Oh, I can't think of anything else they actually provide. How weird!
Can anyone think of something else I might use that they could take away through non payment?


It wouldn't be workable to deny council services to non payers ( which, by the way, you are not -- you are paying under an arrangement). As for things they fund from CT : Police, Fire, libraries, social care, children's services, footpath maintenance, parks and grass cutting, street lighting ---- etc., etc ..... Of course, they also get funds for these from central government, so, for instance they could only refuse to empty 20% of your bins ... and switching off street lights as you pass beneath them would be worth seeing !!
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