Common use of Write-Offs Clause in Contracts

Write-Offs. 13.1 Reasons for writing off debts 13.1.1 EK Services recognises that it is important to consider the balance between recovering arrears as effectively and efficiently as possible with the need to be fair and reasonable to the customer and council tax payers as a whole. 13.1.2 EK Services will ensure that all reasonable steps to recover arrears have been taken and that no further recovery action is practicable. We will concentrate our resources on collectable arrears. 13.1.3 It is EK Services aim to collect all taxes and outstanding charges from customers wherever possible, provided that it is cost effective. EK Services will only write off arrears where the arrears are non-recoverable, uneconomical to recover or we are unable to trace the customer (see 13.4.3) 13.1.4 Reasons for writing off arrears are as follows; Non recoverable arrears ● Customer/Company is insolvent i.e. Bankruptcy, Liquidation and Administrative Receivership cases. ● A Debt Relief Order is in existence – in which case EKS will have regard to the legal status of that Order. ● Customer has served a custodial sentence in respect of Council Tax or Business Rate arrears ● Customer deceased and there is no funds in the Estate ● For Council Tax and Business Rates, where all or part has been remitted by the Magistrates Courts ● For Housing Benefit Overpayments and Council Tax excess reductions, where the overpayment/excess reduction has arisen as a result of an official error and the customer could not reasonably have been expected to realise the overpayment was occurring. ● Arrears that cannot be legally enforced ● Housing Benefit Overpayments or Sundry Debts, where there is no realistic prospect of recovery, with all realistic recovery options exhausted. Further recovery is not cost effective. Uneconomical to pursue ● Council Tax and Business Rates – Balances below £5.00* ● Housing Benefit Overpayments – Balances below £50.00* ● Sundry Debts - Balances below £50.00* *Where no payment has been received within 6 months of sending the final demand for payment Unable to trace ● Customer has absconded ● Debt collection agency failed to trace ● Enforcement Agent failed to trace