COUNCIL TAX DE
I Hate being the bearer of bad news but I am getting a lot of queries on this.
So better to get it out in the open.
If you have council tax arrears, in most circumstances, THE COUNCIL WILL BE CLAIMING THE WHOLE AMOUNT BACK by making a deduction from your settlement money.
It does not matter if you have an attachment of wages. They will assume this continues until November but deduct the rest
EXAMPLE - you owe £5000 and wages attachment is £100 a month. They will assume 6 more payments until November, so £600. 5000- 600 = £4400 and they will deduct this from your settlement. (This is just a mock example not exact figures)
There is nothing we can do about this.
And yes this will apply even if you have a contract with Scott & Co. They are just debt collectors for the council.
I would not panic - in most cases when people check with the council they actually owe less than they thought. I would definitely check.
In the vast majority of cases the settlement is likely to be much higher than the debt - BUT NO WE CANNOT GIVE YOU AN ESTIMATE OF YOUR OFFER. SO PLEASE DONT RING AND ASK. Or message me, as the answer will be ‘sorry,no’.
We have asked for a breakdown of what’s owed but the council are unwilling or unable to give this to us until the send the offers. Not satisfactory but not surprised.
As part of the settlement process the claimant team will be providing ROADSHOWS at the same time as the offers go out.
This will include debt advice and financial advice services. (DETAILS SOON)
There is one group of people for whom the problem is much worse. That is those who have taken out a debt TRUST DEED. This is a peculiarly Scottish arrangement, and I am not an expert by any stretch of the imagination, so you will need to get advice, but it appears The Trustee will not only have rights over the whole settlement to pay off any arrears (not just the bit due to be paid off) but they will take additional fees. Again in most cases it doesn’t wipe out the settlement but it does take out a massive, gut wrenching, chunk.
If this applies to you I strongly recommend you get independent advice, from a free debt service, and they will be at the roadshow.
So if you are having your council tax arrears reclaimed just think there are folk in a much worse position than you (and you do owe the council the money, so there is that.)
The council tell us that there are £10m of council tax arrears owed by claimants which is only 2% of the settlement money but I fear it’s concentrated in a small pool of people who have , just through awful poverty, accumulated large arrears.
Once again sorry for the bad news.
So now I wait for the howls of protest. Just before I fly to Texas.