What happens if I can't pay?

Talk to an independent advice agency, like Housing Rights Service, if you have rates arrears and you're unable to pay them off. A free debt adviser may be able to help you negotiate a repayment plan. Don't ignore the issue. Contact Land & Property Services (LPS) and let them know that you're trying to sort out the problem. LPS has strict recovery procedures and may take you to court if you don't pay your rates.

If you are a private tenant the rates may not be your legal responsibility. Although the occupier is usually responsible for paying rates, in some cases the owner is legally liable. Private tenants should contact LPS to make sure LPS is aware that the property is privately rented and to check who is responsible for paying the rates.

I have received a reminder
I have received a final notice
I have received a Process in Debt Proceedings
Will I have to go to court?
What happens after court?
What can the Enforcement of Judgements Office do?
Will I be adjudicated bankrupt?

I have received a reminder

You will only receive a reminder if you are already set-up to pay your rates by instalments, and your payment is overdue. If you pay the amount overdue within seven day your rates will continue to be paid in instalments.

If you don't pay the overdue amount or contact LPS you will be sent a final notice.

I have received a final notice

You will get a final notice if you still haven't paid your rates after forty days. A final notice gives you 10 days to pay the full amount of rates outstanding for the year.

LPS has an arrears recovery policy and should agree to negotiate an affordable repayment plan with you if you contact them to say that you're in financial hardship. However, LPS may insist that you pay off any arrears within one year. If you're unable to agree affordable repayments with LPS contact Housing Rights Service for advice.

If you ignore the notice and don't either pay the arrears or contact LPS within 10 days you will be issued with a Process in Debt Proceedings. You won't get any further reminders, you will have to pay LPS's court fees and your credit rating could be affected.

I have received a Process in Debt Proceedings

If you receive this notice, get advice immediately. The Process in Debt Proceedings outlines:

the full amount of rates owed for the year;
additional court costs;
the date for the court hearing,

If you don't pay the full amount to your local office before the date of the hearing your case will go to court.

Can I negotiate a payment plan?

Will I have to go to court?

If you've been asked to appear in court, get advice immediately. If you don't show up the judge will have no choice but to order that you pay all the money. This will impact on your credit rating. Once you've received a summons it's hard to stop the court proceedings but an advice agency might be able to negotiate with LPS on your behalf and get a repayment plan agreed.

What happens after court?

If the judge decides that you must pay your rates you will receive a Decree telling you that you must pay your rates. You should contact your local Land & Property Services office to come an arrangement for paying your rates.

If you don't contact Land & Property Services, your case will be passed to the Enforcement of Judgements Office.

What can the Enforcement of Judgements Office do?

If you don't pay your debt or contact Land & Property Services, the Enforcement of Judgements Office will send you a Notice of Intention. If you don't pay the full amount within 10 days:

your credit rating will be affected;
the Enforcement of Judgements Office will add extra costs.

The Enforcement of Judgements Office can take a range of actions to recover the debt. The recovery actions are:

Attachment of Earning order - your employer deducts a small amount from your wages automatically to give to the Enforcement of Judgements Office
Order Charging Land- Any money you owe will be paid when you sell the property
Garnishee orders- The Enforcement of Judgements Office can ask your bank or building society to hand over money from your account to cover all or part of the debt
Seizure orders- The Enforcement of Judgements Office can take some of your possessions which will cover the amount you owe.

Will I be adjudicated bankrupt?

The Enforcement of Judgements Office can't declare you bankrupt. However, Land & Property Services can start bankruptcy proceedings if you owe more than £750. Bankruptcy proceedings will cost a lot of money. Always get advice if you're struggling with debt. There are people out there who can help you deal with your debts free of any charge.