BAD debts of up to £500 may in future be written off by Burnley Council.

The idea is being put to finance chiefs in a bid to keep the books in order and remove the need for officers to spend time chasing small debts they have no chance of recovering.

A report to councillors says debts which will never be recovered are hindering the recovery process.

"As these accounts are still 'live', officer time is wasted sifting through them when nothing further can be done," says the report.

"It makes sense to remove these from the system so that time is spent on those debts which are collectable."

The report says that business rates which are written off can be recovered from a national pool so it makes economic sense to process the accounts.

Officers say there are four general reasons why money owing needs to be written off:

Bankruptcy or liquidation cases where the council is barred from pursuing the outstanding amount.

Where a person has died and has no estate.

Where there are very small balances owing and the cost of recovery action will exceed any benefit to the town.

Where people have simply disappeared and cannot be traced.

But council officers say that even if a debt has been written off, it does not mean it is forgotten.

"If a debtor's circumstances change, the debt can be reinstated."

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