www.iva.co.uk

i got my iva what do i do now dow i carry on paying this years bills ie council tax water rates

The council tax will have been included within the IVA so speak with your IP and confirm that it does not need paid until next year.

Hi and welcome.

Ask your IP to go through your Income and expenditure again with you as any bills payable will be allocated an allowance. My council tax was never included within an IVA and I just paid each month as per my bill.

Get a thorough understanding of what you need to pay to make sure you IVA will run smoothly.

If you were not in arrears it will not be in the IVA and there will, as Lesley suggests, be an amount allowing for its payment in your listed expenditure.

Even if you are not in arrears the debt to council tax will be included within the IVA for the first year. The debt falls due on April 6th so unless paid in full on that date there is technically arrears. Your allowance for the payment is paid into the IVA 'pot' until the following April.

It used to be that council tax was only included where there was arrears and in some cases a liability order but this changed following a court case a few months ago.

Thank you Michael. I was not aware of that --- so basically they are treated in much the same way as current years self assessed income tax at the start.

My IVA being a little older it was not included (which would have been awful as I know several people working in my local council ! ).

FYI:

forums.moneysavingexpert.com/showpost.php?p=64460682&postcount=1

Exactly Foggy. It does confuse clients a bit [and some councils] but I believe all IP firms are doing this now.

Somehow this seems totally wrong - especially as anyone wanting to get an IVA approved in Q4 could be advised to wait until Q1 the following financial year.

And, after a bit of research, there is the question of the council going after the solvent spouse where there is a joint liability !

Plus they could insist that the next year council tax is paid up front with no allowance to pay in instalments.

We only include the council tax debt where both parties are entering the IVA or the debt is in a sole name. If there is a non insolvent spouse we allow the debt to be repaid as normal and list it as a preferential creditor in the IVA. It has not been a problem to date and certainly keeps things simpler.

I had no idea about this either as my IVA is some 8 years ago now

I've always paid our council tax monthly. Into year 4 now