5. How can I deal with my Council Tax arrears?

If you are behind with your Council Tax payments, you should take steps to deal with it quickly, because the council has wide-ranging powers to force you to pay. It can ask the court for an order to allow it to:

• use bailiffs to get the money from you (by taking things you own);
• take money from your wages or certain benefits;
• apply to make you bankrupt; or
• apply for a ‘charging order’ over your home, if you are a homeowner (which means the council could apply to the court to sell it to get the money you owe).

If all else fails, your council can ask the magistrates’ court to consider sending you to prison for non-payment.

Checking what you should pay

At this stage, it is worth checking whether you could ask to pay less Council Tax, or whether you should have to pay Council Tax at all (Council Tax exemption). You may be able to reduce what you owe. For example:

• If you are on a low income, you may be able to claim backdated Council Tax Benefit.
• If you are the only adult living in the house (apart from students, full-time carers, severely mentally disabled people and anyone whose main home is somewhere else), then you could claim a Council Tax discount (25 per cent).
• If the only people living in your house or flat are full-time students or severely mentally disabled people, you do not have to pay Council Tax.

Dealing with bailiffs

If your council has passed the debt on to bailiffs then you may still be able to negotiate with the council. It may agree to stop the bailiffs’ action and accept a repayment plan. If it does, you will avoid having to pay bailiffs’ fees.

You may also be able to negotiate a repayment plan with the bailiffs themselves. However, bailiffs will normally want repayment over quite a short period. Private bailiffs can be very difficult to deal with and it is usually best not to let them into your home. They are not allowed to force entry unless you have let them in on a previous visit.

If you are having problems negotiating an affordable payment arrangement with your council or bailiffs, seek advice from one of our debt advisers (see below).

When you can go to prison

As a last resort, your council can ask the magistrates’ court to consider sending you to prison for non-payment. You can be sent to prison only if the magistrates believe that you ‘won’t pay’ rather than ‘can’t pay’ your debts.

If this is the case, the court will probably make a ‘suspended committal order’. This means that the magistrates will set an amount for you to pay each week or month. You will be sent to prison only if you miss any of these payments. If that happens, you will receive a warrant to be arrested and brought before the magistrates.

If you receive a warrant, or if you’ve missed payments, you should get expert advice as soon as you can.

If you need help dealing with council tax arrears or any other aspect of debt, we recommend that you speak to one of our debt advisers on 0845 345 4 345 for specialist advice. Telephone specialist advice is only available if you qualify for legal aid.

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