Council Tax Court Summons Letter – Can You Ignore It?

Dealing with council tax debt can feel tough. But don’t worry; you’re at the right place to find help.

Every month, over 170,000 people visit our website for guidance on debt solutions, so you’re not alone in your struggle.

In this article, we’ll explain in a simple way:

• What to do if you’re finding it hard to pay your council tax.
• How to understand council tax bands.
• How to ask the council to let you off your council tax debt.
• How not paying your council tax can change your credit score.
• The legal issues if you don’t pay your council tax.

We’re here to help you understand everything you need to know. Remember, it’s not a good idea to ignore a council tax court summons letter as it can lead to big legal problems. But don’t worry; we’ll guide you through what to do if you’re facing this situation.

Let’s get started!

Why Have I Received a Court Summons Letter for Council Tax?

You have been sent a council tax summons letter because your local council has reason to believe you owe money for council tax. It is compulsory for almost every UK resident, who rents or owns a property, to pay tax to their local authority.

The local authority will send you a reminder in the post after 2 weeks of missing a payment. You will receive a ‘final notice’ letter if you cannot pay the Council Tax arrears within 7 days of receiving this reminder, or if you’ve been late with Council Tax payments twice this year. If you don’t pay after 7 days of receiving a ‘final notice’, your local authority can take the matter to court to make you pay. At this point, you will receive a court summons letter.

You can read more about the Council Tax summons procedure here.

Don’t Ignore a Council Tax Summons Letter!

Receiving a summons letter can be scary, but the problem won’t go away if you ignore it. In fact, you can risk imprisonment if you are found to be in contempt of court. Once you receive the letter, you can either pay the Council Tax debt, or you can attend court if you don’t agree with the charge.

Are You Struggling with Council Tax Debt?

Paying off debt is easier said than done. If you are struggling with your Council Tax debt, you’re in the right place. I’ve collated useful information to help you manage your debt. This includes information about helpful organisations and relevant resources. It also includes letter templates to help make communication with creditors more straightforward.

What Does a Court Summons Mean for Council Tax?

A Council Tax summons is basically a request from your local authority to the magistrates’ court to grant a Liability Order against you. A Liability Order gives the local council more power to retrieve your debt. In addition to paying the full amount of what you owe, if a Liability Order is granted, you may need to pay legal fees too. Many people are instructed to pay immediately. However, those who receive benefits, or are on a low income, may be given the option to pay in instalments.

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Do You Have to Attend a Court Summons for Council Tax?

The reason you have been summoned to court is so that the magistrates can decide if you owe a debt to the council. You don’t need to go to court if you pay your debt before the hearing. Furthermore, you don’t need to attend court if you speak to the local authority in advance and agree to pay. In this case, you will be automatically issued a Liability Order.

Should I Attend Court to Dispute my Council Tax Charge?

You have every right to attend court if one of the following reasons applies to you:

• The Council Tax has been set incorrectly
• Incorrect instalments to be paid are shown on your Council Tax bill
• You have already paid
• Your property is exempt from Council Tax

Can I be Jailed for Not Paying Council Tax?

Although imprisonment is uncommon for non-payment of Council Tax, you can face 3 months in prison. This is only applicable for residents in England.

» TAKE ACTION NOW: Fill out the short debt form

What if I Ignore a CCJ for Council Tax?

If you don’t pay council tax and a Liability Order has been granted, the council can retrieve the debt in a number of ways.

Attachment of Earnings Order

The court can make a request from your employer to take money directly from your wages in order to recover the amount you owe.

Attachment of Earnings Orders are legally binding.

This means that failure to comply with an AEO may result in a fine or, in extreme cases, even imprisonment.

Benefit Deductions

If you receive benefits, they can also take back the money by asking the Department for Work and Pensions (DWP) to deduct it from your DWP income. The amount can be deducted from the following benefits:

• Income Support
• Jobseekers’ Allowance
• Universal Credit
• Pension Credit
• Income-related Employment and Support Allowance

Bailiffs

In order to cover your debt, the court can arrange for bailiffs to seize your property. In addition to the full amount you owe, you might also be charged for bailiffs’ costs too.

These fees are generally quite similar, and some bailiff charges are even standardised. County Court bailiffs, for example, have set fees of £75 for a Notice of Enforcement and £235 if they have to actually enforce the debt.

Keep in mind that the enforcement fee can be a bit higher. Usually, they will charge an extra 7.5% of your debt if that debt is over £1,000.

This means that if you have a debt of £1,500 that you don’t pay, you will be charged:

• £75 for Notice of Enforcement
• £235 for Enforcement
• £112.50 for the 7.5% over £1,000.

Total: £422.50.

Charging Orders

If you owe over £1,000 of charges and the property is yours, the council can make a request to the County Court for a Charging Order on your home. When your property is sold, proceeds will go towards any charges you owe. You might also have to pay a Charging Order fee.

Bankruptcy

The council can apply to make you bankrupt if you owe £5,000 or more. In this instance, your home and any valuable assets will be sold, and you may have to pay legal fees. However, this is an uncommon debt collection solution. 

What Can I Do if I Can’t Pay?

Council tax can be expensive and some people may find themselves in a situation where they are unable to make payments on time. If you have received a council tax summons letter and are behind on payments or are finding it difficult to pay your Council Tax, contact the council as soon as possible. It’s a good idea to figure out your budget before speaking to the council, so that they can assess your situation properly and give you suitable advice.

In some instances, you may be given a one-off discount or offered a personalised repayment plan that better suits your financial situation. For example, this forum user from Money Saving Expert has an irregular income, and has made an arrangement with the council to pay irregular amounts of Council Tax.

Can I Write off My Council Tax Debt?

You might be able to write off some of your council tax debts wiht a debt solution. Even if these debts can’t be covered, getting a debt solution might help you get back in control of your finances enough to pay back the council.

There are several different debt solutions available in the UK, so I recommend speaking to a debt charity as soon as possible. Their advisors will be able to look at your finances in detail and help you work out which debt solution will work best for you.

I have linked a few charities that offer these advisory services for free below.

Individual Voluntary Arrangement (IVA)

An IVA is a formal agreement between you and your creditors. You agree to pay a monthly sum that is distributed amongst your debts, and your creditors agree not to contact you during your IVA.

IVAs typically last for 5 or 6 years, and any outstanding debt is wiped off when it ends.

Keep in mind that IVAs are not suitable for everyone. You need to owe several thousand pounds to more than one creditor to be eligible. You also need to demonstrate that you have some disposable income every month.

Trust Deed

IVAs are not available in Scotland. Instead, you will need to opt for a Trust Deed.

Trust Deeds work in the same way as an IVA – you pay an agreed sum each month that is shared amongst your creditors, they can’t contact you, and any leftover debt at the end of your Trust Deed term is written off.

Debt Relief Order (DRO)

A DRO is a good option for those facing financial hardship with no assets and little income.

For 12 months, you make no payments, but your creditors freeze your interest and don’t contact you.

If your finances haven’t improved during this year, you may be able to write off your unsecured debts.

Bankruptcy

If you have debts but no realistic possibility of ever paying them off, you may need to declare bankruptcy.

Bankruptcy has an unfair stigma attached to it as it may be your only way of getting a financial fresh start. That said, it is a serious financial situation that should not be taken lightly.

Sequestration

Sequestration is the Scottish version of bankruptcy.

If you have little income and no valuable assets, you may be able to apply for a minimal asset process bankruptcy (MAP). A MAP is a quicker, cheaper, and more straightforward version of sequestration, so worth considering.

Council Tax Contact Details

Council Tax Court Summons FAQs