Councils attacked over bankruptcy measures

08/10/2009

Two councils have been condemned by the Local Government Ombudsman for several failings in using bankruptcy to recover council tax debts.

Newham Council has come under fire for making a woman with a mental illness bankrupt, while Manchester City Council has also been criticised for using bankruptcy without exploring alternative measures.

The Ombudsman condemned Newham Council for not carrying out checks with its Adult Social Care team before making the woman bankrupt, despite knowing her condition affected her ability to manage her finances.

Manchester City Council meanwhile came under fire for using bankruptcy without having a policy in place which allowed officers to refer individual cases to see if bankruptcy was the most suitable route to take.

In its report, the ombudsman said the consequences of bankruptcy can be devastating and that the councils should have considered other options and given those concerned adequate warning before making them bankrupt.

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