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Manchester mum could lose home
8/10/2007
A MOTHER of three fears she could lose her home after she was bankrupted over council tax arrears of £1,600.
The order has now been annulled by a county court judge who severely criticised Manchester city council.
But a decision has to be made over legal costs which could amount to £100,000.
Lawyers acting for Rifat Parveen say the council pressed ahead with bankruptcy proceedings despite offers to pay the debt and letters sent by councillors. Former Lord Mayor Afzal Khan wrote to the council three times and suggested a system of instalments to pay the debt.
District Judge Charles Khan said the authority had been wrong to issue bankruptcy proceedings, and other options had been available `at a very small fraction of the costs' that have now built up.
Mark McGhee, of Manchester law firm Linder Myers, said: "Using bankruptcy to enforce an alleged debt is like using a sledgehammer to crack a nut. This council, and councils all over the country, should consider whether their council tax recovery policy is appropriate."
Family friend Mohammed Sidiq said: "Mrs Parveen speaks little English and has been extremely worried and confused. She paid more than £500 to bailiffs and her father-in-law offered to pay £1,000, but it seems the council was determined to make her bankrupt."
The bankruptcy order was obtained two years ago and Mrs Parveen has lived with the fear that her semi-detached home in Huxley Avenue, Cheetham Hill, would be taken from her, making the family homeless.
In ruling that the bankruptcy should be set aside, Judge Khan said it was difficult to see how there was any consideration of Mrs Parveen's position. He said the authority had been aware early on that she was a single mother with very young children, that she had language difficulties and that she was living on benefit.
Manchester city council said the authority was `disappointed' that the bankruptcy has been set aside and was considering an appeal. It was therefore reserving comment.
The spokesman added: "Council tax helps pay for the services to the people of Manchester. Many people on low incomes, including the elderly, recognise this and pay their council tax diligently.
"The council recognises this and has a duty to try to collect outstanding council tax from everybody. In this case the council had attempted recovery using a variety of methods all of which had no effect. The council therefore felt it was justified to use bankruptcy proceedings."
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