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View Full Version : bankrupt tenant yes or no?



bob
16-10-2005, 12:50 PM
I have a potential tenant who has told me she has gone bankrupt.She was very honest about the fact and comes across as being a decent person.Now i know most landlords wouldnt touch this one with a bargepole but she is prepared to put down a good deposit and my gut instinct says give her a chance.
Am i being stupid?what does anyone else think about this one?
any views appreciated.

Energise
16-10-2005, 13:03 PM
It seems to me that someone that has been through bankruptcy is unlikely to want to get themselves into financial difficulties again, has their bankruptcy now been discharged?

bob
16-10-2005, 13:06 PM
I dont really understand the bankruptcy procedure,but i think that its going through at the moment and the person is having there house repossesed.

Ericthelobster
16-10-2005, 14:26 PM
I'm in a very similar situation myself as it happens. The potential tenant, who seems otherwise fine, has been upfront with me about debt issues during my telephone screening interview. I'm thinking over whether to take it further, but what I might do is say I'll consider an application if they can come up with a guarantor.

Do others reckon that's a good idea (in terms of protecting myself)?

MrWoof
16-10-2005, 16:36 PM
Bankruptcy carries a stigma that is unnecessary. All it means is that all debts up to the point of bankruptcy are cancelled. Providing the person has not tried to get credit after being informed of bankruptcy proceedings there is no problem. Lenders will always add a percentage point to loans after a bankruptcy but if pressed, will admit that discharged bankrupts are a safer bet than most. A bankrupt can still hold a bank account but it will be one with no overdraft facility and may not permit standing orders. If a potential tenant is up front about everything and can demonstrate that they can afford the rent, I would happily take them on.