Decision Maker: Executive
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
In certain circumstances, debts are considered as irrecoverable, this report seeks approval to write those debts off where the value is in excess of £5,000.
Appendix A to the report lists the debts that are considered irrecoverable. Every effort has been made to recover these sums and where applicable, there is no further legal action that can be taken.
Some debts may be recommended for write off where it is believed that the debt should not be recovered due to the circumstances applicable to that case.
Glossary of Terms Used
Bankruptcy/Liquidations/Administration
Once a person has been declared bankrupt or a company has been placed in liquidation, legislation prevents the Council from taking any further action to recover the debt. Debts due to the Council are classed as non-preferential and therefore the likelihood of receiving a dividend is very low.
Ceased Trading or Company Dissolved
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 liquidation. A company which has ceased trading may be dissolved.
Not worth Pursuing
Occasionally, due to specific circumstances or to the time and expense involved in collection, a debt may be uneconomical to collect.
No Trace
Every effort has been made to trace the debtor, including the use of tracing agents where it is effective to do so.
No Possibility of Collection
Where all avenues of collection have been exhausted and the debt is considered as uncollectable.
RESOLVED that the debts listed in Appendix A to this report, be written off as irrecoverable.
Report author: Adrian Collier
Publication date: 05/03/2015
Date of decision: 02/03/2015
Decided at meeting: 02/03/2015 - Executive
Effective from: 14/03/2015