Preston City Council says it is considering filing legal action against Simon Rigby over a series of debts.
Leader of the authority Matthew Brown said: “The scheduled bankruptcy hearing has been brought to our attention.
“It has become apparent that Mr Rigby is responsible for significant debts as personal guarantor, and there is an expectation that a number of these creditors will seek to join in on this bankruptcy hearing.
“Unfortunately Preston City Council is among this number, and we are actively considering using this, or any other reasonable means to recover the money owed.
“We hope that Mr Rigby is able to settle these debts and resolution is found.”