Council 'wrong' to bankrupt man over £1,000 tax debt

Published by Jon Land for 24dash.com in Local Government and also in Bill Payments

A local council was wrong to bankrupt a man over a £1,105 council tax debt, a watchdog ruled today.

Local Government Ombudsman Jerry White called for the man's bankruptcy to be annulled - and for Wolverhampton City Council to meet the £38,000 cost.

In a report released today Mr White said: "The Council cannot, it seems to me, turn a blind eye to the consequences to the debtor of any recovery option it pursues.

"The dire and punitive consequences of bankruptcy, involving a multiplication of the original debt many times over and frequently incurring the loss of the debtor's home, must be a factor to be taken into account in deciding that the 'last resort' is indeed appropriate.

"I have seen no evidence that this relevant consideration was taken into account."

The man, who has not been named for legal reasons, complained to the ombudsman after being made bankrupt in June 2005 for failing to pay arrears of £1,105, he claimed he owed only £750.

The man must repay the original £1,105 debt.

Wolverhampton City Council interim chief financial officer, Pat Main, said: "We are currently considering our options and our formal response to the Ombudsman's report and therefore do not believe it is appropriate at this stage to comment further on the matter until we have had time to consider the report in detail".