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What happens if you don’t pay?

Last updated on: 09-Apr-2021

7. Make an application for bankruptcy

If you owe £5,000 or more in council tax, we may take insolvency action by serving a Statutory Demand. This document lists all of your known debts and gives you 18 days to set aside the Demand or 21 days to make arrangement for payment in full.

By making you bankrupt, there are consequences of this action which include the following;

  • Full financial details have to be provided to the person appointed by the Court to deal with the insolvency
  • The bankruptcy will be published in the local press
  • You could lose your home and possessions
  • Your employer would be informed
  • You will have difficulty getting credit or opening a bank account
  • You should seek independent legal advice once this procedure has started.

For free money advice, visit StepChange


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