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A man who was forced to declare bankruptcy over a £1,105 council tax debt should not have done so, a watchdog has ruled.
The Wolverhampton-based man, who has not been named for legal reasons, complained to the ombudsman after being made bankrupt in June 2005 for failing to pay arrears of £1,105. He claimed he owed only £750, 24dash reports.
However, the local government ombudsman has ruled that, in this case, the man should not have been made to declare bankruptcy, but will instead have to pay the £1,105 he actually owed.
Ombudsman Jerry White said: "The council cannot, it seems to me, turn a blind eye to the consequences to the debtor of any recovery option it pursues."
Research from the Insolvency Service revealed that there were 23,830 insolvencies in the final three months of 2007.
