Credit, Collections & Insolvency News
East Renfrewshire council has made moves to write off more than £1million of debt.
Members of the authority’s cabinet are being asked to approve the move, which would cancel debts racked up in council tax, housing benefit overpayments, rents arrears and court expenses. Roughly £800,000 of uncollected non-domestic rates (NDR) could also be written off as council chiefs said all viable means of debt recovery had been exhausted.
Council deputy Caroline Innes said: “The decision to seek write-off is not taken lightly. Should any future avenue become available by which to recover these monies, this decision does not prevent any such opportunities being pursued.”
“As per standard accountancy practice, when it is clear all viable means of collection are exhausted, the debt is written off and a release from the bad debt provision is used to offset this expense.”
“There is no net impact on the overall revenue accounts of the council, as bad debt provision has already been provided for the debt not being repaid.”
“The council sets the level of bad debt provision at a prudent level to minimise risk to the council.”
Figures show council tax arrears of £220,000, nearly £45,000 in sundry debt, and more than £90,000 in housing benefit overpayments.
The council, which collects water and sewerage charges for Scottish Water, is also in talks about writing off charges totalling more than £72,000.
This debt relates to 68 businesses and dates from 2005 to 2013, with 47 percent of the value related to two ratepayers.
Source: Barrhead news