Step 3 Choose your debt solution – Common priority debts 3 Council tax arrears Why are these a priority? If you are married, in a civil partnership or living with a partner, both of you will be liable for the council tax bill, unless one of you is exempt. Council tax arrears are a priority debt because the council can apply to the magistrates’ court for a ‘liability order’. This lets the council take the following action. • Use bailiffs to try and take your goods. • Tell your employer to take money directly from your wages. • Ask for money to be taken directly from certain benefits. • Ask the court for a charging order to secure the debt against a property you own if you owe at least £1,000. This could put your property at risk. A charging order cannot be made against a property that you rent. • Ask the court to make you bankrupt if you owe at least £5,000. • In England, ask the magistrates’ court to send you to prison if you refuse to pay, or had the money to pay but did not do so. From 1 April 2019, councils in Wales cannot start any action to ask the court to send you to prison for not paying your council tax. Contact us for advice if the council threatens to make you bankrupt or send you to prison. What can I do? You are normally asked to pay your council tax over 10 months. If you miss a payment, you can lose your right to pay by instalments. If the council says you now owe the current year’s council tax in full, ask it to let you continue paying in instalments. Use the Summary budget for creditors to make an affordable offer towards the arrears. Do not just stop paying. If you can’t afford to pay your normal council tax amount, pay what you can. If you get certain benefits, you can ask the Department for Work and Pensions (DWP) to take money from your benefit to pay towards your arrears. The council should not take any further action while the money is being taken from your benefit. If you are in a vulnerable situation, for example, you are unwell, let the council know. Ask if the council has a vulnerability policy. It may need to be more flexible in how it asks you to pay the debt. If you are in severe financial difficulty, you can ask the council to reduce your council tax debt. If you plan to do this, contact us for advice. For more information see our Council tax recovery fact sheet. Page 57