Council Tax Debt

Council tax debt is another common form of debt faced by many consumers in the UK. Council tax payments, adjusted for the size and position of the property, are due every month. Council tax arrears can build up quickly and become a very serious form of debt. Most people pay council tax in instalments over a ten month period.

Dealing with council tax debt

If you miss a council tax payment and cannot make it up, or even if you think you will miss a council tax payment, contact your local authority to talk over the situation. Their phone number or helpline number will be on your council tax bill. Local councils are often very experienced about dealing with outstanding council tax and have a clear procedure.

Prioritising your debt

If you have prioritised your debt and worked out a monthly budget, you should know how much you can spend on your council tax repayments. Speak to your local council and offer to make a regular payment that you can afford. Some people qualify for council tax benefit, which can make a great difference in council tax repayments.

Serious council tax debt

If you still cannot afford to make council tax payments, your local council may make demands for you to repay the full amount. This may take the form of a Magistrates' Court order, known as a liability order. In this case, the debtor can attend the court and provide evidence. In most cases, local councils are reasonable and will be able to come up with a repayment plan.

Ignoring council tax debt problems

Ignoring a Liability Order because you cannot pay council tax debt can lead to further enforcement. For instance, the amount can be deducted from wages or benefits, or even recovered using bailiffs. At its most serious, missing council tax payments can lead to three months in prison.