Council Tax Update: Statutory Demands and Bankruptcy petitions

With a lot of publicity around Council Tax Bankruptcy this clarifies and explains the administrative procedure used by the courts and councils

This article is a follow up to“ How to Not get summonsed for Non Payment of Council Tax” if you have not seen the article take a look. See also council Tax Bankruptcy and Lawful Rebellion article and Rulings to use in court for Council Tax and CSA summonses.

When a council Tax debt reaches £750 the council can start bankruptcy proceedings, this usually will happen when their partner debt collectors cannot collect for them. This process can be stopped by reducing the amount to less than £750.

The first stage of bankruptcy is The Statutory demand. This has to be served on you personally and will also have some glossy  and deliberately intimidating details of bankruptcy from your local council. These documents will be served by a “process server.” This is a title for a person authorised by a third party to serve the documents.

The information we receive has stated that the documents are often not served correctly. You are meant to identify yourself as the person, however with the freeman movement not identifying themselves as the revenue stream or legal person the process servers just dump the documents on you. This is contrary to the duty and meaning of their job title. One of these even stated he had seen pictures of the person and had identified them by sight.

The main thing to remember is that it is unlikely you will be proceeded against with any legally correct due process.

Once the statutory demand has been “served” you have limited time to attempt to get the bankruptcy set aside. You will have to go to your appointed local court. We have information regarding bankruptcy petitions from The Royal Courts of Justice (the correct courts for the London area ) which are detailed below.

Information seems to bear out that The Bankruptcy section at The Royal Courts of Justice will not accept affidavits. This goes along with the complete loss of rights as we are now under Napoleonic Law, guilty until proven innocent. Lets look at the Maxim which relates to affadavits:

TRUTH IS EXPRESSED IN THE FORM OF AN AFFIDAVIT. (Lev. 5:4-5; Lev. 6:3-5; Lev. 19:11-13: Num. 30:2; Mat. 5:33; James 5: 12). An affidavit is your solemn expression of your truth. In commerce, an affidavit must be accompanied and must underlay and form the foundation for any commercial transaction whatsoever. There can be no valid commercial transaction without someone putting their neck on the line and stated, “this is true, correct, complete and not meant to mislead.” When you issue an affidavit, it is a two edged sword; it cuts both ways. Someone has to take responsibility for saying that it is a real situation. It can be called a true bill, as they say in the Grand Jury. When you issue an affidavit in commerce you get the power of an affidavit. You also incur the liability, because this has to be a situation where other people might be adversely affected by it. Things change by your affidavit, in which are going to affect people’s lives. If what you say in your affidavit is, in fact, not true, then those who are adversely affected can come back at you with justifiable recourse because you lied. You have told a lie as if it were the truth. People depend on your affidavit and then they have lost because you lied.

AN UNREBUTTED AFFIDAVIT STANDS AS TRUTH IN COMMERCE. (12 Pet. 1:25; Heb. 6:13-15;) Claims made in your affidavit, if not rebutted, emerge as the truth of the matter. Legal Maxim: “He who does not deny, admits.”

AN UNREBUTTED AFFIDAVIT BECOMES THE JUDGMENT IN COMMERCE. (Heb. 6:16-17;). There is nothing left to resolve. Any proceeding in a court, tribunal, or arbitration forum consists of a contest, or duel, of commercial affidavits wherein the points remaining unrebutted in the end stand as truth and matters to which the judgment of the law is applied.

When affadavits were taken into The Royal Courts of Justice Bankruptcy section we were told that “Affadavits are not accepted”. So the highest truth in law has now been rejected.

Instead you are given a document which you are expected to sign called a “Second Witness statement”. This of course is what you would sign if your were assumed to be guilty and not a sovereign, innocent until proven guilty. This is commerce and you are the liable revenue stream and your rights have been removed.

The affadavits were also served by hand at the council offices of The “ Insolvency Officer”. who has to give a name (real or fictional). This appears to be someone who has other duties within the Benefits and Revenues section of the council. Our plan was to make him personally liable. In the deregulated corner cutting world of councils our detailed and unrebuttable affadavit  was of course ignored. The council just have a dedicated phone number for the job and a paper pushing jobsworth at the other end. 

This job title is essential in the Council Tax Bankruptcy scam as there has to be a person acting on behalf of the company or corporation. This of course is just window dressing to use bankruptcy laws when there is no real cause for them.

When the application for set aside is refused a “bankruptcy petition” is sent from the court on behalf of the council.

The Bankruptcy Petition from The Royal Courts was a piece of A4 paper with Royal Courts stamp applied. Legally the document was void for various reasons explained below. This prompted us to think that it was just a threat and would not be carried out. However as we know the whole court system has been de regulated for ease of corporate extortion on the liable revenue stream.

We have had many people coming to us who have been bankrupted in this way. The envelope containing this particular “petition” was a plain white envelope which omitted the postcode. This could of course be giving you less time to respond.

The following is what was set out on the blank piece of paper with Royal Courts stamp.





MISS DEPUTY REGISTRAR JONES                                              NO 8-SD 2011


UPON THE APPLICATION of (YOUR NAME of YOUR ADDRESS) to set aside a statutory demand

dated (DATE)

AND UPON READING the evidence

IT IS ORDERED that this application be dismissed

AND IT IS ORDERED that the creditor (NAME OF COUNCIL) be authorised to present a bankruptcy petition forthwith.


Reason:  Application summarily dismissed pursuant to rule 6.5 (1) of The Insolvency Rules 1986. No sufficient cause shown.

The document contained errors in the address of both the council and the person served which of course should make it void. This may be intentional, as the whole process appears to be merely an administrative fast track deal between the councils and courts. Or It maybe that this administrative bankruptcy is dealt with by illiterates in the offices of the Royal Courts.

There was no real reference, room number or name which of course would indicate the whole thing really is a scam and the courts know it. When it was inquired who this Registrar was the people on the phone did not know or claimed they had no knowledge of where they were based. When they were give a number there was no response or the phone went dead.

Check out the Insolvency Rules 1986

When we enquired about these council tax bankruptcies in the bankruptcy section we got through to a very helpful man who told us he had also suffered administrative bankruptcy proceedings himself by the same borough through the Royal Courts of Justice for non payment of council tax.

In his case the same council had issued bankruptcy proceedings against him when in fact he had paid and owed nothing. The local authority did however write and apologise, eventually.

He also said that the whole system was an absolute scam and was carried out on a massive scale by this particular council (Waltham Forest, which has 31 unsatisfied CCJs ) but that councils all over the country were doing it to a greater or lesser extent.

When trying to get through to the Chambers where the hearings for bankruptcy take place it was not possible to get through and the phone again was often cut off.

If you get bankrupted you will have to deal with the insolvency service . You will have an appointed insolvency practitioner. Your assets can also be frozen for up to 7 years. If you do not have property bankruptcy is not a major problem. People who contacted us who had no major assets only had the inconvenience of dealing with the insolvency service.

This administrative bankruptcy though is at the very least an inconvenience.

As we reported previously the main issue is that of the council issuing their own summonses which is still the most important point. Requesting copies of the court summons may be a good way to stall the administrative process as this proves that the whole excercise is merely an administrative stamping exercise which is unlawful.

When in doubt reduce the debt to less than £750.

NB In March 2010 one of our contributors made this freedom of information request:

Dear Ministry of Justice,

Is it permissible for any organisation to issue its own summons to
a person to attend a Court except the court itself?

Is it an offence to issue such a document bearing the Queens seal
if it is not issued by the court?

What action could be taken against such an organisation should the
above situation arise?

There has still been no answer.

As we know it is a crime for any organisation apart from a court to print a summons. It is a crime under The Administration of Justice Act and Fraud and Perjury when it carries the Crown Seal, which all the council tax summonses we have seen do.

(see article Rulings to use in court for council tax and CSA summonses) Maybe this is why the Ministry of Justice would not answer and the request is still waiting for an internal review over a year and a half later.

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