Can I put council tax into bankruptcy?

Important. You will still be liable for your present and future council tax, including while you are bankrupt

Council Tax Arrears From a previous year

Any council tax arrears from a previous year due at the date you became bankrupt are included in the bankruptcy. Your local council will not be able to enforce this debt once you are bankrupt.

Council Tax Arrears From the current year

If before you were bankrupt, you lost the right to pay your council tax by instalments because you did not make the payments on time, you will have become liable to pay the whole year’s council tax. This debt too will be included in the bankruptcy. You will not be liable for any payments towards council tax for the rest of the financial year (April to April) as long as you remain bankrupt.

Bankruptcy Without Council Tax Arrears

If you are not behind on your Council Tax payments the remainder of you liability for the current year can’t be included in your bankruptcy and you will be required to pay it.

Can I be made bankrupt over my Council Tax ?

The minimum debt for which someone can try to make you bankrupt, usually refereed to as a Creditor Petition, is £5,000. Only in the unlikely event your council tax arrears are this much could you be forced into bankruptcy due to council tax debt.

Money Helper (formerly The Money Advice Service) is a free service set up by the Government to help people make the most of their money. If you would like to learn more click here. is not regulated and is for fact-finding only. We can help assess your circumstances and point you to someone who can provide available options that suit your debt criteria.

If an individual meets the required criteria for an IVA based on our packaged case, this will be passed to one of our partnering Insolvency Practitioners to get direct advice. If the individual does not meet the criteria for an IVA, The Insolvency practitioner is able to provide contact information for other third-party organisations that offer advice on other available debt solutions. For full details view our Privacy Policy.

If you decide that an IVA (Individual Voluntary Agreement) is not the best option for you after we have prepared the necessary information, you can opt out of the process and have all of your details removed. We receive a fee from the third party that we refer you to for introducing you and for the work we have completed. However, you will not be responsible for paying this fee. The third party will contact you directly to continue the process of your IVA application or to explore other solutions, but only with your permission after we have introduced you.