Why is my council tax included in my IVA?
When proposing an IVA (and all other insolvency solutions) your current council tax bill is classed as a debt to include in your list of creditors, if:
- You live in a household where you’re the only person named on the council tax bill
- You've entered into an IVA at the same time as your partner
What should I do if council tax is included in my IVA?
The council will normally submit their claim for the council tax bill within the first few months of your IVA.
You should continue paying your council tax as normal until you receive written confirmation their claim has been agreed and that your IVA payments will be adjusted. Once this happens, future payments to the council will stop.
This ruling only impacts you if you’re in the first year of your IVA. Council tax bills issued following the approval of your IVA will need to be paid directly as normal, and at that point it’ll be accounted for in your budget and treated as a priority.