Issue details

This report proposes the approval of the write off of certain debts.

Appendix A to the report lists the debts that are considered irrecoverable. Every effort has been made to recover the debts and there is no further legal action that can be taken, where it is applicable.

Glossary of Terms Used:

Bankruptcy/Winding Up

Once a person has been declared Bankrupt or a Company is in liquidation/administration or a Debt Relief Order (DRO) has been made, legislation prevents the Council from taking any further action to recover the debt.   Any debt due to the Council is non-preferential and therefore the likelihood of receiving a dividend is very low.  No dividends are payable on a DRO.

Ceased Trading or Ltd Company Dissolved

This is where a company is no longer trading but the assets of the company (or the individual) are insufficient to justify the cost of placing the company in to liquidation.  A company which has ceased trading may be dissolved.

No Trace

Every effort has been made to trace the debtor, including the use of tracing agents where it is effective to do so.

Statute Barred

Limitation periods are imposed by statute, primarily the Limitation Act 1980.  There are different limitation periods for different types of cause of action.  For example, the limitation period may be six years from the last date of contact for certain debts.

Uneconomic to pursue / Aged debt

Due to the age of the debt, prospects of recovery are unlikely and would potentially incur the Council with additional costs.

Deceased

The debtor has died and there are insufficient funds in the Estate to clear the debt.

Local Authority error

The debt has arisen from a LA error and it would not be reasonable to take action to recover.

No assets

The debt in this case relates to a Charitable Incorporated Organisation without assets to enable recovery action to be taken.