Visa application with Council Tax Summons

[hello23456]

Hey all,

First time poster, been browsing some of the related questions which has helped, but wanted to ask a more refined question regarding the Tier 2 (or any visa) application process when you've got a council tax summons.

In short, the three of us live in a shared house (in the UK on student visas) and split bills and one house mate was in control of council tax (which has all of our names on it) missed paying a bill, and ignored the two warning letters. We got a council tax summons to go to court unless it was settled prior, and received a liability order.

We've called the council who's agreed to a payment plan to pay off the whole years council tax (the council have switched from monthly payments and decided charged us one payment for the whole year till Feb 2017), the council said that theres no need for us to attend court any more and our names wouldn't be mentioned in court, BUT that the liability order would still be applied to against our names and used should we miss a payment in future.

SO my question is, if im applying for a new visa next month (tier 2) how does this affect my application, and should i mention it anywhere, including in the covering letter, or not?

Also, If I pay the whole amount in full, the council will also remove the liability order against us, so if the above option isn't good, i would then just stump up the cash and pay for the whole thing.

Thanks!