Can council tax be included in a debt relief order?
Council tax can be included in a debt relief order (DRO) if you’re in arrears.
Below we look at when you can and can’t include council tax in a DRO.
When can council tax be included in a DRO?
Council tax arrears can be included in a DRO up until the date the DRO is made.
To be eligible for a DRO, you can have maximum debts of £50,000. You must also meet the other DRO criteria.
What happens to DRO council tax arrears?
Council tax arrears included in your DRO will be frozen for 12 months. During this time, your local council can’t chase you for payment or take bailiff action against you. If your circumstances don’t change, your debts will be written off.
You’ll still need to pay council tax during this time. Any council tax arrears that build up after your DRO is made won’t be included, so you’ll be liable to pay them, and the council could take action to recover them.
Considering a DRO? Get free debt advice today
Or learn how Money Wellness can help with free debt advice.
All our debt advice is free. Some solutions are free. For others, there’s a fee.
When can’t council tax be included in a DRO?
Council tax can’t be included in a DRO if you aren’t in arrears.
If you follow a monthly instalment plan and are up to date with payments, upcoming instalments aren’t classed as a debt, even if you can’t pay them.
If you can’t afford an upcoming council tax payment, you should speak to your local council straight away.
What to do about council tax arrears
Never ignore contact from your local authority if you’re in council tax arrears – this can make the situation worse.
It’s best to contact them as soon as possible if you’ve missed a payment. They can discuss an affordable repayment plan and check if you’re eligible for a council tax reduction.
Our guide on council tax arrears explains this in more detail.
Money Wellness blogs
18 Sep 2024
To mark the 20th anniversary of Stop the Loan Sharks, we're sharing Karen's story
13 Sep 2024
Find out how medical write-off helped one of our customers
10 Sep 2024
What we want to see from the autumn budget
03 Sep 2024
You don’t have to be a customer to apply
29 Aug 2024
What to do if you’re behind on your energy bills