Is it possible to write off council tax arrears?
Yes, is it entirely possible to write off your council tax arrears. But this depends on a few different factors.
- Your council needs to be on our list of approved councils. Some councils will allow you to pay back a small percentage of your council tax debts, others will insist on the full amount. It is important to speak to us to find out how your council vote.
- You will need to have a total debt level of £5000 or over. This must consist of 2 or more creditors (people you owe money to).
- You must have a regular income of £800 or above.
- You must be willing to enter into an Individual Voluntary Arrangement – IVA.
An IVA is the only legitimate way (except for bankruptcy) to write off your council tax debts. With an IVA you will have to pay back a percentage of your total debts for a period of 5 years. At the end of the 5 years, the remainder of your debt will be completely written off – leaving you debt free.
Can I stop council tax bailiffs?
Council tax bailiffs have higher powers than debt collectors.
They have the rights to:
- Visit your home.
- Enter your home (peaceful entry) with a days notice. This means if you have left a door open, window open or if you open the front door; the bailiffs can push their way into your property.
- Remove goods from your house.
- Clamp vehicles at your property.
- Issue CCJ’s to your credit file.
How can I stop this from happening?
First things first. Ignore every website you have read which says you can avoid these through misleading letters and technical jargon. It doesn’t work. The only way to stop a bailiff in his tracks is to enter into an IVA. Once you have entered into an IVA, the bailiff can not legally visit your property. You have to enter into your IVA before they seize goods, so act quickly.
What debts can be included in an IVA?
Unsecured debts can usually go into an IVA. Some examples of unsecured debts are:
- Credit card debts
- Unsecured loan debts
- Payday loan debt
- Council tax debts
- Catalogue debts
- Overdraft debts
- HMRC debt
What debts can’t be included in an IVA?
Secured debts can’t go into an IVA. Examples of secured debts are:
- Mortgage payments
- Hire purchase
- Child maintenance
- Court fines
- Secured loans