Can you get a CCJ for Council Tax? 

Being in debt from council tax can make you feel lost and worried. But don’t fret; you’ve come to the right place for answers. Every month, over 170,000 people visit our website to find answers to their debt problems, so you’re not alone.

In this easy-to-read article, we will discuss:

• Steps to take if you can’t afford your council tax.
• What a Liability Order means and if it’s the same as a County Court Judgement (CCJ).
• How to deal with a Liability Order.
• The effect of council tax debt on your credit score.
• The legal results of not paying your council tax.

The average council tax debt among those seeking support from Citizens Advice has remained stable at £1,100 over the last year.¹

We understand your worries about council tax debt. This article is here to guide you through it all. We will give clear and understandable advice, so you don’t need to feel overwhelmed.

Let’s get started.

What is a county court judgement?

A County Court Judgement (CCJ) is an order from a judge that states you have to pay the debt. This means that the court agrees with your council, and you owe the money.

Your judgement will include the following:

• How much you owe
• How you should pay
• Who you should pay
• Your deadline to pay.

Unless you pay within one month of the CCJ being issued, it will be recorded in the Register of Judgements, Orders and Fines for 6 years. If you pay off your debt within these 6 years, you can request that your judgement is marked as ‘satisfied’ on the register.

To do this, write to the court with proof that you have paid off the debt in full.

If you manage to pay within one month of the CCJ being issued, the judgment will not be recorded in the register. You will need to write to the court explaining that you have paid and provide proof.

CCJs are also visible on your credit file for 6 years. This will make it almost impossible for you to get credit during this time.

This is because companies use your credit file to see if you are a ‘high-risk’ customer – someone who might have difficulty paying their bills on time. If you have a CCJ, you have had such trouble paying back your debt that someone had to go to court about it.

Understandably, companies are going to be reluctant to give you credit!

After 6 years, it is no longer visible on your credit report and you should find it easier to get credit again.

Note: Keep in mind that an N244 form is an application notice that can help you set aside a County Court judgement.

Can you get one for council tax?

If you receive a summons to attend a Magistrates’ Court about your council tax debt, the court action does not lead to a CCJ. But it can lead to a liability order being issued.

There is a difference between the two. In short, you won’t get a CCJ for not paying council tax.

What is a liability order?

A liability order is a document that the court can provide to a council. The document makes you responsible to pay what is owed to your local authority or face enforcement action. 

The order costs around £20 to issue, and this is added to your debts. 

The council can enforce it using:

1. Attachment of earnings – this is when payments are automatically taken from your employment income by your employer, or from benefits by the DWP. The deductions are made before you are paid.
   
2. Bailiff enforcement agent – this is when the authority employs bailiffs to recover the money owed on your account plus legal and bailiff agent fees.
   
3. Charging order – a charging order is used so the council tax debt is secured against a property you owe, meaning it will be paid from the sale of that property. 
   
4. Bankruptcy – the council may apply to make you bankrupt under certain conditions. 

Note, you will need to pay related service fees as well as your debt if it happens to escalate this far. Get advice from a charity if this is your current situation. 

Does it expire?

A liability order does not expire, meaning the council has as long as they need to enforce the debt. However, this does not override the possibility that the debt becomes legally unenforceable. Keep reading to learn more.

Can I ignore it?

No, you cannot ignore a liability order.

Failure to comply with a liability order can result in fines for you or for your employers. In extreme cases, you can even be imprisoned.

Dealing with arrears

Dealing with court proceedings, a charging order, enforcement agents, bankruptcy or an attachment of earnings is not fun and can be expensive.

As soon as you receive a notice at your address asking for payment, it’s time to take action. Either make the payment in full or pick up the phone and call your authority to explain why you are unable to make a payment at this time. The council is likely to agree on a payment plan to help you repay what you owe affordably over time.

Search online for the phone number of the correct department at your local authority. 

If you have already received a summons, also contact the council to see what can be agreed upon. As soon as the liability order is issued, the debt becomes more problematic and costs you more.

And don’t forget to get advice from a charity. They can even help you budget so you know what amount of repayment instalments you can accept. 

How to get deductions

The most common way people get council tax deductions is if they live alone or live with people who don’t have to pay this tax, such as children or full-time students in their teens. 

You may be able to get a reduction if you receive some benefits, such as Employment and Income Support Allowance, Pension Credit or Universal Credit. There are many council tax solutions available out there. Here’s a list of some of them.

Debt Strategy	How It Can Help With Council Tax Arrears
Flexible Payment Arrangements	Local councils often offer the option to spread council tax payments over 12 months instead of the standard 10.
One-Off Payment	If feasible, pay council tax in full and potentially negotiate a slightly reduced amount.
Hardship Schemes	Council Tax Reduction (CTR) Discretionary Relief Hardship Funds Support for Vulnerable Individuals COVID-19 Specific Support Charitable Grants
Discounts and Exemptions	Check for eligibility for discounts (e.g., single-person discount of 25%) or exemptions (e.g., properties unoccupied due to the resident’s death, properties where everyone’s a full-time student, or a resident has severe mental impairment)
Deferred Payments	Some councils allow deferring payments wherein you’ll pay less now and make up for it later.
Challenge your Council Tax Band	If you believe your property’s council tax band is incorrect, you can challenge it to potentially lower future payments and refund previous overpayments.
Debt Solutions	Certain formal debt solutions like Debt Relief Orders (DRO), Bankruptcy, and Individual Voluntary Arrangements (IVA) can potentially write off council tax arrears,
Professional Debt Advice	UK residents can seek free advice from debt organizations and charities for council tax guidance tailored to their specific financial situation.

» TAKE ACTION NOW: Fill out the short debt form

How do I challenge it?

You have 14 days to inform the court that you disagree with the terms of your liability order.

You will need to write to the court and explain why you think the order that you have been given is wrong. From my experience, the most common examples include:

• You think that the court has set the instalments too high
• You want to request that the AEO is suspended while you explain to the court, in detail, why your employment might be affected.

A hearing will then be arranged. You must go to the hearing and take a detailed personal budget and information about any debt repayments or other outgoings that you have. You also need to take any other evidence that you have as to why you think that the liability order was wrongly given out.

You can then explain to the judge holding your hearing why you think that the liability order will cause serious problems or how your job will be affected.

Can bailiffs force entry?

Bailiffs cannot break in to collect council tax debts unless you have broken a Controlled Goods Agreement (CGA) and the goods secured against the debt are inside your property. Even then, they must meet other criteria to force entry, and they cannot harm you or search your person. 

Can They Take Everything?

There are strict rules on what bailiffs can’t remove from your property, even if they are collecting for priority debts like council tax. These items include:

• Anything that belongs to someone else – this includes things that belong to your children
• Pets or service animals
• Vehicles, tools, or equipment that you need for your job or to study up to £1,350
• A mobility vehicle or any vehicle with a valid Blue Badge
• Anything permanently fitted to your home – kitchen units, etc.

Bailiffs also can’t take things that you need to live. These items can be anything that you use for your ‘basic domestic needs.’ They can take some of these things, but must leave you with:

• A table with enough chairs for everyone in your home
• Beds and bedding for everyone in your home
• A phone or mobile phone
• Any medicine or medical equipment that you need to care for someone
• A washing machine
• A cooker or microwave, and a fridge.

If you think that a bailiff has taken something that they shouldn’t, you need to complain immediately.

You can also contact a debt charity for some advice. I have listed several charities that offer free advice at the bottom of this page.

What if I am a vulnerable person?

Before you start addressing the Notice of Enforcement from the bailiff about your council tax debt, you should know that if you: 

• Are disabled in any way or extremely ill
• Suffer from any kind of mental illness 
• Have children or are pregnant 
• Are under the age of 18 or over the age of 65
• Are dealing with a stressful situation such as the death of a loved one or unemployment 
• Don’t speak English very well 

You are considered a vulnerable person. This means that any bailiffs will have to follow some additional rules to ensure their visit is as easy on you as possible.

Furthermore, if any of these conditions apply to you, you can get more time to deal with the Notice of Enforcement. You can also get more time if the Notice of Enforcement was not sent to you properly by the bailiffs or your council.  

If you fall into any of the above categories, you need to either tell the bailiffs yourself or get a relative or carer to do it for you. You can then contact them by phone or by post. I have a free letter template that you can use to explain your situation.

When you speak to the bailiffs, you need to:

• Tell them that you’re vulnerable
• Explain why you would find dealing with bailiffs more difficult than other people in the same situation
• Ask them to stop any visits in the future because it will cause harm and distress to you
• Tell them if a letter or a visit could make your situation worse – this could be the case if you have a mental health problem or a heart condition, for example.

Make a note of what you agree with the bailiffs about future contact. This will make it easier to argue with them if they don’t stick to this new agreement, or if you need to make a complaint.

Can you go to prison for arrears?

It is rare but possible that you will be sent to prison for not paying a council tax debt. You can be sent to jail for up to 90 days if you have wilfully neglected or rejected making payments.

If you have avoided the different methods of enforcement action, the council could ask the court for a further hearing. You will receive a summons to attend the Magistrates’ Court on a specific date. Do not ignore the summons because not showing up can result in the judge issuing an arrest warrant.  

Contact the council if you want to make a full payment before the hearing and get support from a debt charity. 

When you do attend, the court will decide if you simply could not afford to make payments or if you have wilfully rejected paying. If it is the latter, you may be sent to jail.

What is a means enquiry summons?

A means enquiry summons is an enquiry into your financial situation when the debt started. It is used to decide if you had the means to pay or if you willfully neglected the debt. Thus, it can be used to decide if you should be sent to jail. 

How long can you be chased for the debt?

Even though a liability order doesn’t expire, this order only lets the local authority enforce the debt. The debt itself can become unenforceable by law after six years in England and Wales, and 20 years in Scotland.

This is due to the Limitations Act 1980, which stops old debts from being taken to court to prevent legal resources from becoming stretched. 

But the six-year countdown can restart if you make a repayment or if you acknowledge that you are responsible to repay in writing. You may need to search your transactions to find out when you last repaid on your debts to work out when they become Statute Barred. 

If you think your debts are too old to collect, contact a charity for advice and to assess whether they really are Statute Barred. There are a number of charities that can help!

Does it affect credit rating?

Local authorities will not send information about your council tax arrears to any of the credit rating agencies. This means your council tax debt will not affect your credit score. 

This isn’t an excuse not to pay your council tax bill. 

References

1. Big Issue – Council tax debt is spiralling across England as households struggle with cost of living crisis