Dealing with Council Tax Arrears

If you have fallen behind with your Council Tax payments, it is important to act as soon as possible. Council Tax arrears are considered a priority debt, which means there can be serious consequences if the debt is ignored.

The sooner you seek help, the more options are likely to be available.

If you miss a payment, your local council will usually send a reminder asking you to bring your account up to date.

If the missed payment is not made, the council may:

• Ask you to pay the full year's Council Tax bill.
• Apply to the Magistrates' Court for a Liability Order.
• Take further action to recover the debt.

Ignoring letters or reminders can make the situation more difficult, so it is important to respond as soon as possible.

A Liability Order is a legal decision that confirms you owe the Council Tax debt.

Once a Liability Order has been granted, the council may be able to:

• Arrange deductions from wages.
• Arrange deductions from certain benefits.
• Use enforcement agents (bailiffs).
• Apply for a charging order in some circumstances.
• Begin bankruptcy proceedings in exceptional cases.

If you are struggling to pay:

Many councils are willing to discuss payment arrangements and may be able to agree a repayment plan.

You may be entitled to:

• Council Tax Reduction
• Universal Credit
• Pension Credit
• Other welfare benefits
• Local welfare support schemes

Receiving all the support you are entitled to can make managing your finances easier.

3. Complete a Budget

A budget can help identify:

• Your income
• Essential household costs
• Debts that need prioritising
• Any available money for repayments

4. Seek Free Advice

Getting advice early can help prevent enforcement action and may give you access to additional support.

Yes. If a Liability Order has been granted and alternative arrangements have not been successful, the council may instruct enforcement agents (bailiffs).

If you receive correspondence from a bailiff:

• Do not ignore it.
• Seek advice as soon as possible.
• Check whether the amount owed is correct.
• Explore repayment arrangements.

Council Tax debts are not usually written off simply because you cannot afford to pay them.

However, debt solutions such as:

• Debt Relief Orders (DROs)
• Individual Voluntary Arrangements (IVAs)
• Bankruptcy

may include Council Tax arrears in some circumstances.

Professional debt advice should always be sought before considering these options.

Our advisors can help you:

• Understand your Council Tax arrears.
• Check if you're entitled to Council Tax Reduction or other benefits.
• Create a realistic budget.
• Explore repayment options.
• Access free and confidential debt advice.

Contact our team for support before the situation becomes more difficult to manage.