Cheshire East Council Tax - Prescribed Insolvency Forms used for Bankruptcy

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Dear Cheshire East Council,

Cheshire East Council Tax - Prescribed Insolvency Forms used for Bankruptcy

Please confirm under the FOIA which prescribed Insolvency forms the council uses when bankrupting individuals for non-payment of council tax.

Prescribed Insolvency form 6.1 Statutory Demand under section 268(1)(a) of the Insolvency Act 1986 Debt for Liquidated Sum Payable Immediately and the corresponding prescribed form 6.7 Creditor's Bankruptcy Petition on failure to comply with a statutory demand for a liquidated sum payable immediately.

OR

Prescribed Insolvency Form 6.2 Statutory Demand under section 268(1)(a) of the Insolvency Act 1986 Debt for Liquidated Sum Payable Immediately Following a Judgment or Order of the Court and corresponding prescribed form 6.9 Creditor's Bankruptcy Petition Where Execution or Other Process on a Judgment has been Returned in Whole or Part.

Yours faithfully,

Ed Boyce

CCR FOI Investigation Team, Cheshire East Council

Date: 1 December 2016
Our Reference: 512036
 
Dear Mr Boyce
 
Freedom of Information Act 2000
 
Thank you for your request.
 
Your request has been identified as falling within the scope of Freedom of
Information Act 2000 and It will be treated as a request for information
within the meaning of the Freedom of Information Act: this means that we
will send you a full response within 20 working days, either supplying you
with the information which you want, or explaining to you why we cannot
supply it. 

The due date is 3 January 2017. Please note that Cheshire East Council
Offices will be closed from Monday 26th December until Tuesday 3rd
January. Consequently, we will not be able to issue any responses during
this time period. We will endeavour to supply your response before the
Christmas and New Year closure. However, this may not be possible.

In the meantime if you wish to discuss this further please contact me. It
would be helpful if you could quote the reference number quoted above. If
we need any further clarification or there is a problem, we will be in
touch. 
 
Yours sincerely
 
 
Valerie Nelhams
Compliance & Customer Relations Assistant
Cheshire East Council
 
NOTE: Please do not edit the subject line when replying to this email.

CCR FOI Investigation Team, Cheshire East Council

1 Attachment

Date: 5 December 2016
Our Reference: 512036
 
Dear Mr Boyce
 
Thank you for your request for information received on 1 December 2016.
 
Please find attached our response to your request.
 
Yours sincerely
 
 
Valerie Nelhams
Compliance & Customer Relations Assistant
Cheshire East Council
 
NOTE: Please do not edit the subject line when replying to this email.

Dear CCR FOI Investigation Team,

Please clarify why Cheshire East Council uses the following prescribed insolvency forms and not the corresponding form.

Statutory Demand under section 268(1)(a) of the Insolvency Act 1986 Debt for Liquidated Sum Payable Immediately following a Judgment or Order of the Court does not correspond with prescribed Creditor's Bankruptcy Petition form 6.7 on failure to comply with a statutory demand for a liquidated sum payable immediately.The latter is not a petition where execution or other process on a judgment has been returned in whole or part.

Yours sincerely,

Ed Boyce

CCR FOI Investigation Team, Cheshire East Council

Dear Mr Boyce
Please find below the response to the questions raised after receiving
your response to this request.

The forms for demands/petitions are:

6.1 - Statutory Demand under section 268(1)(a) of the Insolvency Act 1986.
Debt for Liquidated Sum Payable Immediately 

6.2 - Statutory Demand under section 268(1)(a) of the Insolvency Act
1986.  Debt for Liquidated Sum Payable Immediately Following a Judgment or
Order of the Court 

6.7 - Creditor’s Bankruptcy Petition on Failure to Comply with a Statutory
Demand for a Liquidated Sum Payable Immediately

6.9 - Creditor’s Bankruptcy Petition Where Execution or Other Process on a
Judgment has been Returned in Whole or Part

There is a no one size fits all solution and we pick  the relevant form
for the particular case.  If the debt is established pursuant to a Court
order i.e. Liability Order it would typically be form 6.2 that is
appropriate and if there is no order to establish the debt, typically form
6.1.

The wording in form 6.7 (Creditor’s Bankruptcy Petition on Failure to
Comply with a Statutory Demand for a Liquidated Sum Payable Immediately)
refers to a previous statutory demand.

The step before the petition relates to proving the debtors inability to
pay – the above forms provide for different options here depending on the
facts of the case. A creditor can demonstrate the debtors inability to pay
either by non compliance with a statutory demand or alternatively  where
the debtor appears to be unable to pay its debts because:

•           The debt is a Judgment debt in favour of the creditor

•           The debt is payable immediately; and

•           Execution or other process issued in respect of the debt has
been returned in whole or in part 

In this latter scenario you would expect to see a form 6.9 used. You will
note from form 6.9 that there is no reference to a statutory demand having
been previously served – as above – in the appropriate scenarios there is
no need for a prior demand where proceeding with a 6.9 petition 

I hope this now closes this matter in a satifactory manor for your

Yours sincerely

Gill Clowes
Compliance and Customer Relations
Cheshire East Council

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Dear CCR FOI Investigation Team,

Please clarify why Cheshire East Council uses the following prescribed
insolvency forms and not the corresponding form.

Statutory Demand under section 268(1)(a) of the Insolvency Act 1986 Debt
for Liquidated Sum Payable Immediately following a Judgment or Order of
the Court does not correspond with prescribed Creditor's Bankruptcy
Petition form 6.7 on failure to comply with a statutory demand for a
liquidated sum payable immediately.The latter is not a petition where
execution or other process on a judgment has been returned in whole or
part.

Yours sincerely,

Ed Boyce 

Dear CCR FOI Investigation Team,

Other councils have confirmed that they use corresponding prescribed insolvency forms.

Are you saying that you do not need to bother serving a bankruptcy petition because you have obtained a Liabilty Order.

Or that you do not need to serve a statutory demand because you have obtained a Liabilty Order.

Yours sincerely,

Ed Boyce

CCR FOI Investigation Team, Cheshire East Council

 
Mr Boyce -
 
In response to your further query, Cheshire East Council can confirm that
as your question relates specifically to Council Tax the answer is form
6.2 for Statutory Demand as this is a debt based on a judgment or order of
the Court i.e. Liability Order and the petition is then 6.7.
 
Kind regards.
 
Compliance & Customer Relations Team.

--------------------------------------------------------------------------

Dear CCR FOI Investigation Team,

Other councils have confirmed that they use corresponding prescribed
insolvency forms.

Are you saying that you do not need to bother serving a bankruptcy
petition because you have obtained a Liabilty Order.

Or that you do not need to serve a statutory demand because you have
obtained a Liabilty Order.

Yours sincerely,

Ed Boyce

show quoted sections

Dear CCR FOI Investigation Team,

Please clarify why you are using the non-corresponding petition form 6.7 when you have obtained a Magistrates Liabilty Order and have served prescribed statutory demand form 6.2 based on obtaining the order.

Yours sincerely,

Ed Boyce

CCR FOI Investigation Team, Cheshire East Council

Mr Boyce -
 
Please find below our further clarification in response to your latest
query on this matter.
 
Cheshire East Council presumes the “corresponding form” that you are
referring to is a form 6.9.  When using a form 6.9 there is no mention and
no requirement to serve a statutory demand before petitioning.  Therefore
a form 6.9 would only be used by the council if they proceeded straight to
petition on the back of a “nulla bonna”.  The Council chose to issue a
statutory demand for the debt due before proceeding to a petition and
therefore use form 6.7 which rightly refers to a statutory demand.
The FOIA process is to assist the facilitation of information from public
authorities to the public. Your request has been responded to in full and
has been clarified on a number of occasions. Cheshire East Council cannot
add anymore by way of response to this question and considers the request
to be closed.
 
Kind regards.
 
Compliance & Customer Relations Team.

--------------------------------------------------------------------------

Dear CCR FOI Investigation Team,

Please clarify why you are using the non-corresponding petition form 6.7
when you have obtained a Magistrates Liabilty Order and have served
prescribed statutory demand form 6.2 based on obtaining the order.

Yours sincerely,

Ed Boyce

show quoted sections

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