question category: Bankruptcy

what's my best course of action when made bankrupt for council tax arrears?
Submitted on: 11th Jun 2009 by Non-Member | Total Answers: 2

I owe £2400 in council tax and have been made bankrupt. My mortgage is for 105k on a house now worth 90-95k and is up to date with payments. My only other debt is a bank loan of 6.5k, would I be as well lumping this in with the bankruptcy? All advice welcome as I'm in a bit of a flap here.

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Re: what's my best course of action when made bankrupt for ...

Hi,
Youve not given much info there, a bankruptcy always takes into consideration all debts that you have. The official receiver also has 3 years to look into selling any property so the value could have increased by then.

Have you actually been adjudged as bankrupt or was it just a threat of bankruptcy either way you will need to seek further advice to clarify those details.

Submitted on: 12th Jun 2009 by Justine Member

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Re: what's my best course of action when made bankrupt for ...

If you have already been made bankrupt then really you should speak to the Official Receiver. They have a duty to advise you of your options as does the judge that makes the order against you.

Bankruptcy will clear all your debts - usually within 12 months, You are in negative equity so it should be relatively easy to protect your property.

In my opinion its ridiculous for a council to make someone bankrupt for so low a sum and I would complain to my local councillor.

You should look at the insolvency service website and its leaflets
http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/guidetobankruptcy.pdf

If you have specific questions about the process by all means click on my name and email me at Debt Advice Foundation

Submitted on: 15th Jun 2009 by Darren Member

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