Information and questions relating to Debt Relief Orders

Moderators: TalbotWoods, JaneClack

By johnny 73
#297033 i'm hoping someone might be able to answe this question. a client has several years worth of council tax debt totalling approx £4K, among others and i'm considering a DRO application for her, BUT for most of the years she didnt declare her partner being at the property so had the 25% discount applied to reduce her bill.

as part of the c tax debt has this fraudulent element involved, could this prevent the debt being included in a DRO, or even the DRO applicatin being accepted?

any help gratefully recived,
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By TalbotWoods
#297053 Any debt that is fraudulent is automatically excluded from any form of insolvency.

However, all other debts can go into the DRO, just the C/Tax will be excluded, but no provision can be taken in working out the excess each month for repayment, so for arguments sake if there is an excess of £40 per month, and a repayment on the fraud of £15 per month, then the excess income can be ruled to be £55 per month!

Hope that muddies the water a tadge for you
By johnny 73
#297113 yes splendidly muddied, thanks

i wonder if it can be argued that only some of the c tax arrears are fraudulent (the 25 discount bit) so maybe they could be excluded but the remainder included

i think i'll refer her on to a DRO intermediary to discuss it
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By TalbotWoods
#297123 Even more mud for you

If the LA has moved them as fraudulent then no, they whole CT claim, will be considered as a fraudulent. (By moved I mean an interview under caution-recorded). What they will have done then is suspended the fraudulent CT Account and issued a Fraud Warning account with the repayment instruction attached.

If they have not yet moved the claim as fraudulent, then it can be argued.