People all over the UK, especially in Glasgow, are grappling with the increasing cost of living. The ongoing crisis has made it much harder to meet ends meet and handle the bills every month.

With energy prices skyrocketing, food costs still exceeding pre-Covid levels, it’s quite easy to find yourself in a financial predicament.

Consider the case of the individual who fell behind with an important bill and was concerned about potential repercussions.

The individual shared:

I’ve been having difficulty paying my council tax and have fallen behind. I recently received a letter from the council about the debt. I’m worried as I’ve heard they can take money from my income. Is this true?

The Advice Direct Scotland responded:

It’s true that if you’re behind on your council tax, a portion of your income may be deducted. However, before the council can even consider this action, they need to follow some steps as it should be a last resort. Council tax debt is classified as a ‘priority debt’, which means that the consequences of not addressing it can be severe, and enforcement action can be taken. If you’re informed that this is happening, it’s necessary to contact your council immediately to discuss a repayment plan.

Additionally, you need to confirm that the information in their records is accurate and you’re actually responsible for the debt. If you’ve received your first letter from the council and have only missed one payment, it’s likely you’ve simply been sent a reminder.

Remember, this is your first formal warning. The reminder specifies the deadline for payment, or to contact the council within seven days. If you’re struggling, you’ll have the option to pay the outstanding balance in instalments.

If you’ve previously received a reminder letter and have not communicated with the council, you’re likely to receive a final notice letter. This will demand the full bills payment within one week, forfeiting your right to pay in instalments. The council may even ask you to pay your entire yearly council tax all at once.

In such situations, the best course of action is to communicate with the council proactively, as ignoring the problem could lead to a summary warrant, extra charges, and enforced payment by court orders. This could further lead to a ‘charge to pay’ or ‘charge for payment,’ which is a final demand, and if you fail to comply, the council can pursue enforcement action after an additional 14 days.

If enforcement action is taken, you’ll deal directly with the officers in charge. However, if you can’t pay the outstanding balance all at once, they generally allow a repayment plan. The debt repayment can also be collected via an Earnings Arrestment Order (EAO), which commands your employer to deduct a portion of your income to clear the debt.

Additionally, post a summary warrant, your bank account may be frozen. The council can’t access a minimum bank balance of £1,000, but anything exceeding this can be captured up to the total amount owed, including any legal costs.

If you’re receiving any benefits, the council can request the Department of Work and Pensions to deduct a portion of your benefits to pay off arrears. These payments are referred to as ‘third-party deductions’.

It’s crucial to underline that you don’t have to struggle alone with financial troubles. Specialised debt advisors from moneyadvice.scot are available for you. For different financial issues contact 0808 196 2316 or visit www.moneyadvice.scot.

Impartial advice on any topic can also be accessed for free from advice.scot. Contact them at 0808 800 9060 or visit www.advice.scot. Advice is available for everyone in Scotland, including Glasgow, at zero cost, regardless of their fiscal circumstance.