Council tax arrears and legal action guide

Council Tax Arrears and Legal Action: How to Avoid Court in 2026

Updated for 2026

Falling behind on council tax is stressful. Letters pile up, deadlines pass, and before you know it, your local authority is talking about court action. But here is the good news: legal action over council tax arrears is not inevitable. Thousands of people across England and Wales resolve their debts before things ever reach that stage, and you can too.

This guide explains exactly what happens when you fall behind on council tax, how the enforcement process works in 2026, and the practical steps you can take right now to avoid a liability order, bailiff visits, or worse.

What Happens When You Miss Council Tax Payments?

Your council will not send bailiffs to your door the moment you miss a payment. There is a clear process that local authorities must follow, and at every stage you have the opportunity to resolve things.

First, your council will send you a reminder notice. This gives you seven days to pay the overdue amount. If you pay within that window, your normal instalment plan continues as if nothing happened.

Miss a second payment and you will receive a final notice. At this point, the council can demand the full remaining balance for the year, not just the missed instalments. This is where many people start to panic, but it is still not too late to act.

If the full balance goes unpaid, the council will apply to the Magistrates’ Court for a liability order. You will receive a court summons, typically with a court costs charge of between £70 and £110 added on top. The liability order itself is usually granted in your absence, as most people do not attend the hearing.

The Real Cost of Council Tax Court Summons

Court costs vary by local authority. In Leicester, for example, costs of up to £70 have historically been added to accounts. Other councils charge more. These costs are fixed by the court and added to your total debt regardless of how much you originally owed.

Once a liability order is granted, your council gains significant powers to recover the debt. These include:

Instructing enforcement agents (bailiffs) to visit your home and seize goods
Making deductions directly from your wages through an attachment of earnings order
Taking money from your benefits at source
Applying for a charging order against your property
In extreme cases, applying for your committal to prison for up to 90 days

None of these outcomes are ones you want. The good news is that every single one of them is avoidable if you take action early enough.

How Hundreds of People in Leicester Avoided Court

A well-documented case from Leicester City Council shows just how common it is for people to resolve their arrears before enforcement begins. The council issued summonses to 3,500 residents over a combined £2.68 million in unpaid council tax. Of those, 450 people cleared their debt in full before the court date, and a further 400 set up repayment arrangements.

That means roughly a third of everyone summonsed resolved the situation without ever stepping foot in a courtroom. Council officers were even stationed outside the court on the day to help people set up payment plans, showing that most authorities genuinely prefer to collect the money through agreement rather than force.

As one senior revenues officer put it at the time: people who engage with the process and make contact are rarely the ones who end up facing bailiff action. It tends to be people who ignore all correspondence who find enforcement agents knocking on their door.

Your Options If You Cannot Pay Council Tax

If you are struggling to pay your council tax in 2026, you have several options available to you. The worst thing you can do is nothing.

Contact Your Council Immediately

Phone your local authority’s council tax department as soon as you know you cannot make a payment. Most councils will offer a revised payment plan, sometimes spreading the debt over a longer period or adjusting your monthly amounts. They would rather get something than nothing, so there is usually room to negotiate.

Apply for Council Tax Reduction

Every council in England runs a Council Tax Reduction scheme (sometimes called Council Tax Support). If your income has dropped, you have lost your job, or your circumstances have changed, you could be entitled to a reduction of up to 100% depending on your local authority’s scheme. Many people who qualify never apply because they do not realise the scheme exists.

Check Whether You Qualify for a Discount or Exemption

Single person discount (25% off), student exemptions, severe mental impairment disregards, and carer discounts are just some of the reductions available. If your household circumstances have changed, check whether any of these apply to you. Getting the right discount could significantly reduce what you owe.

Challenge Your Council Tax Band

Your council tax band is based on what your property was worth in April 1991 (in England). If you believe your home has been placed in the wrong band, you can appeal to the Valuation Office Agency for free. A successful appeal could mean you have been overpaying for years, resulting in a refund that wipes out your arrears entirely.

What Bailiffs Can and Cannot Do in 2026

If a liability order has been granted and your council instructs enforcement agents, it helps to know your rights. The rules governing bailiff behaviour are set out in the Tribunals, Courts and Enforcement Act 2007 and the Taking Control of Goods Regulations 2013.

Enforcement agents must give you at least seven days’ written notice before their first visit. They cannot force entry into your home on their first visit for council tax debt. They can only enter through a door and cannot climb through windows, break locks, or enter when only children are present.

If a bailiff behaves aggressively, threatens you, or tries to force entry on a first visit, that is a breach of the regulations. You have the right to complain to the enforcement company, your local council, and if necessary, to the Local Government and Social Care Ombudsman.

For more detail on bailiff rules, see our guide on unnecessary bailiff visits and what to do about them.

Debt Relief Orders, Bankruptcy, and Council Tax

For people in serious financial difficulty, council tax arrears can be included in formal debt solutions.

A Debt Relief Order (DRO) is available if your total debts are under £50,000 and you have very little disposable income or assets. As of 2026, the DRO application fee is free, making this an accessible option for people on the lowest incomes. Council tax arrears can be included in a DRO, giving you a fresh start after 12 months.

Bankruptcy is another option if your debts are more substantial. The current fee to apply for bankruptcy in England and Wales is £680. Council tax debt is included in bankruptcy, and once you are discharged (usually after 12 months), the debt is written off. This is a serious step with long-term consequences for your credit file, so it should not be taken lightly.

Both options are worth exploring if your financial situation means you genuinely cannot repay what you owe. Speak to a free debt adviser through StepChange or Citizens Advice before committing to either route.

Why Acting Early Makes All the Difference

The Leicester example is not unusual. Across England and Wales, councils would far rather agree a repayment plan than pursue costly legal enforcement. Court hearings cost them time and money. Bailiff referrals involve fees. Prison committal proceedings are rare and require significant legal work.

If you contact your council before the summons is issued, you will almost certainly avoid court costs. If you contact them after a summons but before the hearing, many councils will still agree to a payment plan and withdraw or adjourn proceedings. Even on the day of the hearing itself, council officers are often available to make arrangements.

The pattern is clear: people who engage with the process avoid the worst outcomes. People who bury their heads do not.

Get Free Help With Council Tax Arrears

You do not have to deal with council tax debt alone. Council Tax Advisors provides free, independent guidance to help you understand your options, negotiate with your local authority, and put together a realistic repayment plan that keeps bailiffs away from your door.

Whether you have just received your first reminder or you are already facing a liability order, getting advice now could save you hundreds of pounds in court costs and enforcement fees.

Get Free Council Tax Advice