Discussions on life after your bankruptcy discharge.

Moderators: TalbotWoods, JaneClack

By BobbyD
#317143 Hi

Firstly I would like to say thank you to all you guys there. I have used your web site over the last few years pre, during and post my bankruptcy. Having always found the answers to my questions on your site I have thus never posted anything. So many many many thanks info. Did I say thanks!! You supported me indirectly no end! You are brilliant.

Now I found myself needing your help/advice , so here’s my first post
I will try and keep this short
Pre- bankruptcy- 6 buy to let properties and my own home that I was renting out plus 7 credit cards debts all went into my bankruptcy.
Went overseas for a year
I sent letters and keys back to all mortgage companies and included all properties in my bankruptcy(some where rented obviously)

Bankruptcy date Jan 2011- discharged Jan 2012

I found myself now facing a bill for council tax for one of my buy to let properties

This is the note from the council

“The period of the charge is from 3rd December 2010 until 13th September 2011 when we was informed that the property was repossessed on that date. There was nothing to pay on the account until 3rd June 2011 as a 100% exemption was granted due to the property being empty and unfurnished. As the exemption is only valid for 6 months this was then changed to 25% discount and this then generated the charge on 3rd June 2011 for £680.83. “

Being unemployed with no money or assets I am now facing baliffs - hmmm

I am told by the OR that I am responsible for this debt.
Really ? after I gave all my properties to the OR and banks ? They collect the rents but I am still liable for future debts ??
On this premise then I am responsible for debts on these properties until they are repossessed/ sold by the banks. But the OR/Bank is in charge of when they move out the tenants and repossess?
What stops the banks delaying selling these and charging me certain debts?
May be I am being stupid but after being duped by all the banks on valuations and forcing me to go bankrupt ( I could not see a way out) I thought that as they where included in my bankruptcy and that I had passed over the responsibility to the OR and that any debts of future debts relating to the properties were not my responsibility anymore. Any help advice would be appreciated
User avatar
By TalbotWoods
#317243 Hi BobbyD

OK Bankruptcy and Council Tax is nearly alwasy a pain.

It sounds like you have not applied to the council to get the properties exempted under Class Q (Property left empty by a bankrupt.) This is an indefinite exemption, which you need to apply for. At present it sounds as it they have just been notified that the properties were empty during repossession, rather than included in bankruptcy

I would suggest talking to the council about this as they wont offer this up unless asked for!

A dwelling will be exempt from Council Tax if it is unoccupied and the person who would be liable to pay Council Tax is a trustee in bankruptcy.

The exemption applies whether the dwelling is furnished or not.

The exemption applies whether or not the trustee is jointly liable with any other person

If we award exemption, it will be given from the date the relevant circumstances first apply and will be backdated accordingly.
By BobbyD
#317473 Hi Talbot Woods

Well what can I say
I replied to the council re Class Q etc

Their reply is below as you can see

" Thank you for your email. Unfortunately Class Q does not apply in this case but we have looked at the account further and have arranged for the case to be returned from the bailiffs and action will be withdrawn "

I won't argue with them re whether Class Q applies, it is the outcome that I am after hey ! So no further action is a good result i guess

Thanks for you help.
It just shows you don't trust them and keep pushing

Regards BobbyD :D