Enforcing the Council Tax Liability Order

Once a liability order has been granted we are given extra powers to recover the outstanding debt. These include:
 
 
Liability Order Questionnaire
 
The Council can now request that you, or anyone else named on the order, provide their financial details within 14 days.
 
It will be a criminal offence not to supply the information without reasonable cause, or knowingly supply information that is false.
 
If you do not return your duly completed Liability Order Questionnaire we will immediately pass your case over to Jacobs, the Council’s bailiffs for collection.
 
 
Attachment of Earnings Order
 
The Council can instruct your employer to make deductions directly form your pay and as such they will be entitled to deduct an administration cost of £1 for each transaction. A copy of the order will be sent to both you and your employer.

The amounts that we can take from your pay will depend on how much you earn, the actual % levels can be found by clicking Attachment of Earnings Order.
 
Your employer must follow the Attachment of Earnings Order and may be prosecuted and eventually fined if they do not.
 
 
Deductions from your Benefit Entitlement
 
The Council can request deductions directly from your Income Support, Jobseekers Allowance or Employment & Support Allowance.
 
We will make an application to the Benefits Agency to recover by weekly deduction the full amount referred to in the liability order, which will include the costs incurred when obtaining the order.
 
 
The Council’s Bailiffs
 
If you do not return your duly completed Liability Order Questionnaire, providing either an acceptable offer of payment, employment details (for an attachment of earnings) or details of your entitlement to state benefits (for an attachment to Income Support or Jobseekers Allowance) we will pass your case over to the Council’s bailiffs for collection.
 
The Council will no longer discuss settlement of your account and you will be liable for any additional costs incurred. We will not intervene in any action taken by the bailiff to enforce payment, unless the circumstances are exceptional.
 
A bailiff is empowered to visit your property and levy distraint against goods to the value of the outstanding debt included in the liability order, along with any costs that they may have incurred in the course of such a levy. The goods can then be sold at public auction.
 
It should be noted, however, that certain goods are protected from distress. These are any goods of the defaulter that fall within the following description:-
 
a) such tools, books, vehicles and other items of equipment as are necessary to the debtor for use personal by them in their employment, business or vocation;
 
b) such clothing, bedding, furniture, household equipment and provisions that are necessary for the satisfying the basic domestics needs of the debtor and their family.
 
You will, however, normally be allowed to keep your goods in the property but only if you sign an agreement that holds the goods so the bailiff can leave and return at a later date: in the event that you do not pay the debt. Please note that if the bailiff has to return to remove goods, your presence will no longer be required.
 
In such cases the Council’s bailiffs will come to your home with a removal van and remove your furniture/belongings (these can include cars and bikes). They will, however, put them in secure storage before they are sold at auction.
 
Should you pay the money owed to the Council, along with Jacobs’ fees, you will be entitled to collect your possessions before they are sold.
 
 
Charging Orders
 
Providing the debt is greater than £999.00 we can make an application to the County Court to impose a security against the value of your house, this will then be paid to the Council when it is eventually sold.
 
 
Bankruptcy
 
The Council may start bankruptcy proceedings against you, or anyone else named on the liability order providing the debt, or the aggregate amount of debt, is greater than £749.00.

We will send a statutory demand that will give 21 days for you to pay the full amount. If you do not settle that statutory demand we will present a petition for bankruptcy in the County Court.
 
Once issued with a bankruptcy order the official receiver will investigate your affairs and your bank account(s) will be frozen.

If you are made bankrupt the official receiver will control your spending, you will lose your credit rating and be blacklisted from getting any more credit; you could even be forced to sell your home to pay your debts.
 
 
Committal to Prison for Non-Payment
 
If we are unable to recover the unpaid Council Tax by an alternative course, such as an attachment of earnings/Income Support or Jobseekers Allowance, or through an instruction to the council’s bailiffs, we will have no alternative but to apply to the local Magistrate for a committal summons. This is the first stage of possible imprisonment.
 
If you receive a committal summons, you should contact us immediately. Alternatively you should get legal advice from a solicitor, your local law centre or Citizens Advice Bureau.
 
If you pay the debt in full, you do not need to go to court. If, however, you do not pay in full, you must go to the court (date shown on the summons).
 
The court will assess your income and spending to decide whether you should go to prison. You should bring evidence of your income and spending to court if possible.
 
If you do not attend the hearing the court will issue a warrant for your immediate arrest. When arrested you will be taken into custody where you will have to wait for your hearing.
 
These are very serious matters. Do not ignore the committal summons. Please contact us immediately. If you do not contact us immediately, you may go to prison for up to three months.
 
 
Contact us:
If you require any further information about Council Tax enforcement please contact us on (01748) 829100, or alternatively you can e-mail us us at mailto:local.taxation@richmondshire.gov.uk
 
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