Monday, January 12, 2009

Restraint urged over tax arrears

Restraint urged over tax arrears

Council tax bill
Council tax arrears could be "devastating", the Lib Dems said

Bailiffs called on nearly 600,000 people who fell behind with council tax payments in England and Wales last year, according to the Lib Dems.

One million people received court summons over council tax, answers to Freedom of Information requests showed.

The party has urged councils to make less use of bankruptcy orders to force people to settle their debts.

The Local Government Association said only 1% of cases ever got to court and bankruptcy orders were a last resort.

The party used the Freedom of Information act to find out what councils in England and Wales did to recover arrears - 172 councils answered.

Accounts frozen

Many used "attachment of earnings" orders to recover unpaid tax - in which a person's employer is asked to deduct the money from their salary and pay it directly to the council.

But bailiffs were used on some 600,000 occasions, the party said.

Just as lenders are being asked to reduce repossessions, public bodies should do everything they can to ensure that bankruptcy is avoided where possible
Julia GoldsworthyLiberal Democrats
And in 1,700 cases, councils filed for bankruptcy against those owing more than

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