Council Tax - Bankruptcy Procedure

Tendring District Council will consider and where appropriate initiate Bankruptcy Proceedings against Individuals whose debt to the Council at the time of proceeding is in the region of £2500.00.

The debt may be made up of Council Tax, National Non-Domestic Rate (and associated Court Costs), Housing Benefit Overpayment and Orders for Costs from previous Insolvency Proceedings.

Bankruptcy will only be considered where there is debt(s) that is subject to Liability Order(s) or County Court Judgments/Orders. Any debt that is not subject to an Order may only be included in such proceedings if;

(a) There is a debt in the region of £2000 that is subject to Court Order(s) and
(b) There is written agreement from the Recovery Manager

Only the Council's Solicitor or such Company that may be subject to a Contract or Service Level agreement may be instructed to undertake such work for BRS (Benefits & Revenues Service).

Bankruptcy proceedings should only be instigated when all other relevant options have been tried or considered inappropriate with particular attention being given to securing the debt by way of a Charging Order.

Only officers from the Court Section (or Assistant Head of Service or higher) are empowered to instigate such proceedings.

The decision to proceed with Bankruptcy on property owners with (on the evidence to hand) sufficient equity to pay the debt and costs may be made by a level not less than that of Senior Recovery Officer.

The decision to proceed involving any other case must be agreed at a level not less than that of Recovery Manager.

The following checks/action must take place prior to initiating Bankruptcy Proceedings

1. A Land Registry Search and/or a Land Charges search.

2. N.A.F.I.N. (Experian) search

3. Register of Electors search

4. Check Recovery & Benefit files and the Document Imaging System to confirm that the account is correct.

5. Check Collect Services web site specifically to see if they have had actual contact with debtor.

6. E-Mail a DPA request to the nominated person in every service (list provided by Judy Barker Data Protection Officer) & NHS Trust (Lyn Howarth or an officer nominated by her) to see if they have any information, particularly regarding the vulnerability of the debtor.

Any mention or a sign of vulnerability must be followed up and as much information obtained as possible. The matter must then be passed to the Recovery Manager to decide how the matter should proceed.

If vulnerability is mentioned and a decision to proceed is made the reasons must be recorded and the matter should proceed as below but with caution.

If on the face of the information obtained a decision to proceed is made a visit to the property must be made by the officer having conduct of the case who should attempt to hand the Pre Bankruptcy letter to the debtor and if appropriate discuss the matter at the property.

The Pre-Bankruptcy letter must offer (if owner) the opportunity of securing the debt by way of a Charging Order. It must also give the name of the officer having conduct of the case together with an offer of an appointment to attend a meeting at Tendring Councils Office in Pier Avenue. The debtor must be informed that they can bring a friend/adviser/solicitor to the meeting.

If proceeding via the Council's Solicitor

If no firm payment plan is in place 21 days after the issue of the letter a Statutory Demand must be prepared and served straight away.

Always try to keep an arrangement on a Statutory Demand within the four months (six months at the most). Any arrangement must be in writing and confirm that a breach of the arrangement will cause a Petition to be issued 14 days after the missed payment.

If no firm payment plan is in place within 28 days of the service of the Statutory Demand, proceed to Petition immediately unless further information causes you to reconsider the decision to proceed.

If proceeding via an outsourced Solicitor

Pass all details to them in accordance with their working practices as per any agreed SLA.

Bankruptcy Proceedings must only be issued if it is known that the
debtor falls into one of the following categories with the written authorisation of the Head of Service

(1) The debtor is a severely disabled person (either mentally or physically)

(2) The debtor is incapacitated due to illness or old age

(3) The debtor has suffered a bereavement of a close member of the family within the last two months.

(4) The debtor is suffering a life threatening illness

(5) The debtor does not understand English

If any evidence regarding the above comes to light after Insolvency proceedings have been instigated. The decision to proceed should be reconsidered and a full written note made as to how the matter is to proceed and why.