Liability orders explained

A liability order is granted by magistrates and gives a local authority powers to enforce payment of a council tax debt. Once a liability order is granted a local authority has the following powers:

The authority to request financial information

Once a liability order is granted a local authority has the right to ask for certain information about you such as your employer's details or details of any benefit you receive. It is a criminal offence not to supply this information or to supply false information, which is punishable by a fine.

The authority to instruct enforcement agents to recover the arrears

Once a liability order is granted debts can be referred to private bailiffs for collection. The bailiffs' role is to collect full payment or remove goods and sell them at public auction to satisfy the debt. Once a debt is referred to the bailiffs, the bailiffs take full responsibility for collecting the debt and it is the council's policy not to interfere with the bailiffs' operations. Under the council tax legislation the bailiffs are allowed to charge fees to the taxpayer for the work they undertake. To view the charges an enforcement agent can make, please see the Enforcement Agent Charges document in the resources box to the right of the page.

The right to set up an attachment to your earnings

Once a liability order is granted debts can be recovered through attachment of earnings orders. An employer will be served with an order to make deductions from a person's wage. Failure by the employer to comply with the order is a criminal offence punishable by way of a fine. The amount deducted from a person's wage is set in legislation as a percentage that varies dependant upon the amount a person earns.

The right to make deductions from certain benefits

If you are in receipt of Income Support, Job Seekers Allowance or guaranteed Pension Credit your council tax arrears can be recovered through an attachment of benefit order. The Department for Work and Pensions will be ordered to make deductions from a person's benefit entitlement.

The powers to place a charging order over a property

In cases of property owners, the council has the power to place a charging order over a person's property. The council may then seek an order for sale of the property to recover the money owed to the authority.

The power to declare a person bankrupt

If a taxpayer owes over £750 the liability order grants the authority powers to declare a person bankrupt. Bankruptcy has serious implications and can result in the sale of a person's home to satisfy the debt.

The powers to have a person committed to prison

Non-payment of council tax is a civil offence and can be punished by a term of imprisonment for up to 90 days.

Herefordshire Council is committed to recovering all debts owed in a fair and polite manner. If you are having difficulty paying your council tax it is important you contact us as soon as possible to discuss your situation so that we can help you and avoid the need for further action which is likely to add additional fees and charges to your arrears.