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Councils `filing for bankruptcy for those who fail to pay tax`
21/01/2009
Some consumers who are failing to pay their council tax are facing the prospect of bankruptcy, new figures suggest.
A survey of over 170 councils in the UK conducted by the Liberal Democrats indicates that more than one million people have been summoned to court for falling behind with their tax payments, while councils filed for bankruptcy for over 1,700 people in order to collect tax arrears.
Responding to the findings, Shadow Local Government Secretary Julia Goldsworthy said: "Just as lenders are being asked to reduce repossessions, public bodies should do everything they can to ensure that bankruptcy is only ever a last resort."
Meanwhile, the Liberal Democrats called for public bodies to make sure that families are not being unnecessarily bankrupted during the current economic downturn.
Earlier this month, KPMG suggested that the number of consumers in the UK who enter into insolvency will surpass 150,000 during the course of this year.
