Should I pay my Council Tax debt

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paul324
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by paul324 » Mon Jul 16, 2018 12:48 pm
I have applied for a Iva, whilst waiting for it to be approved should I pay my council tax debt or tell them I have applied and see if they give me a months grace or not
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luluj
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by luluj » Mon Jul 16, 2018 4:40 pm
Council tax debt can be added into your iva ... I personally would not pay it admit will be showing precedence over one creditor ...speak to your IP to ask them to have it included as a debt.
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MerlinL14
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by MerlinL14 » Mon Jul 16, 2018 5:37 pm
My council tax was ring fenced as a utility same as Gas, Lekkie and Water, as I was not in arrears nothing changed through the whole 60 months of the IVA.
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Foggy
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by Foggy » Mon Jul 16, 2018 5:51 pm
MerlinL14 wrote:
My council tax was ring fenced as a utility same as Gas, Lekkie and Water, as I was not in arrears nothing changed through the whole 60 months of the IVA.


So was mine, Merlin, but a recent court case has changed all that. As the full council tax is due and payable at the beginning of April each year --- payments spread over 10 months is only a facility granted at the council's discretion ---- the courts have deemed it a debt to be included in the IVA. I am not sure that all IP's are doing this and, personally, do not agree with the ruling, though I can see the reasoning. I have heard that some councils are denying the 10 month options going forward in some cases following an IVA write off but have no personal experience of this.
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kallis3
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by kallis3 » Tue Jul 17, 2018 8:56 am
I agree - mine was allowed in my I&E but it has changed
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