Council Tax and bankruptcy

If you owe more than £5,000, we may start taking action against you to recover the debt. A statutory demand is sent to you giving you 21 days to pay the full amount.

When you receive this, you will need to contact us by telephone on 020 8583 4242 immediately.

If you do not settle your bill, we will present a petition for bankruptcy in the High Court which starts bankruptcy proceedings against individuals who owe us council tax.

If we issue bankruptcy or insolvency proceedings this means you may:

  • meet with the official receiver, and if appointed, a trustee who will thoroughly investigate your affairs
  • have any business you own closed immediately
  • lose any assets of real value including your home and life insurance
  • lose any assets you may acquire during the term of your bankruptcy such as inheritances, insurance settlements, growth of asset value in your home
  • have your building society, creditors and landlords informed immediately
  • have all bank accounts and credit cards closed. No UK bank will give bankrupts any sort of bank account. Anything you might be leasing, or buying on hire purchase, such as your car, will be immediately returned to the owner
  • lose professional and business status, have some employment opportunities prejudiced, face rejection from many associations and societies
  • be refused credit for years after your discharge.

Your trustee will have to settle every debt, whether it is in order or not.

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