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slindsey
01-02-2010, 07:33 AM
Hi, I have a tenant who has been in the property 7 months (is 1 month out of contract). She has just informed me she is going to go bankrupt due to having a house with an ex and he refuses to move out. She has always paid the rent on time and, other than this, couldn't be a more perfect tenant even fixing small things that go wrong in the house herself rather than calling me. I have a couple questions

1) Does her going bankrupt affect my credit rating as the house belongs to me? Will it affect me or my address she lives at adversely at all?

2) My heart tells me to carry on letting her stay until such point that she doesn't pay the rent on time and will then give her notice to leave. Advice on what to do here?

Thanks

PaulF
01-02-2010, 08:02 AM
1) Does her going bankrupt affect my credit rating as the house belongs to me? Will it affect me or my address she lives at adversely at all? No

2) My heart tells me to carry on letting her stay until such point that she doesn't pay the rent on time and will then give her notice to leave. Advice on what to do here? It's up to youNot much one can say really.

JK0
01-02-2010, 08:12 AM
It may be a bit late to suggest this, but has your tenant considered the 'Rent a Room' scheme? If the husband doesn't want to move, would he consider a housemate to share the bills?

If he won't consider that, why doesn't she stop paying the mortgage, and let the house be repossessed?

Lawcruncher
01-02-2010, 08:52 AM
If her ex will not move out sounds like she needs to see a solicitor, especially if she is on the verge of bankruptcy.

Snorkerz
01-02-2010, 08:53 AM
I would suggest you issue a section 21 notice, so that if you decide it is time she went then you can start possession proceedings even if she is not 8 weeks unpaid.

jeffrey
01-02-2010, 10:06 AM
I would suggest you issue a section 21 notice, so that if you decide it is time she went then you can start possession proceedings even if she is not 8 weeks unpaid.
That sounds a very sensible suggestion.

P.Pilcher
01-02-2010, 10:32 AM
Maybe I've been lucky, but I took on a tenant with a (previously declared) IFA. Six months into her tenancy she had to go bankrupt and I received a letter from the bankruptcy office asking me to confirm her tenancy status. Then, a month or so later, to make matters worse, she lost her job. With me she has always been open about her financial affairs and is now receiving housing benefit. Her rent has always been paid on time and last month, to help her cashflow she requsted that her rent date be delayed by a week. This request was accompanied by a week's rent. Her new rent date has now passed and her month's rent was again received when promised on the new date. A tenant I am happy to continue to do business with.

P.P.

jeffrey
01-02-2010, 10:37 AM
Er, IFA = Independent Financial Adviser.
You mean IVA = Individual Voluntary Arrangement.

GJMSurrey
01-02-2010, 13:16 PM
It really is down to the individuals persona.

Although I only have a few tenants myself, they are a mixed group and one is actually bankrupt, and as soon as that happened they had more money to pay their rent (as their previous other debts 'dissappeared').

I take a view that Bankruptcy/IVA are not the start of an individuals problems, but the end of them.

Unfortunataly this individual was just made redundant (poor guy), but now pays rent by housing benefit. No problems.

alex_bisgrove
01-02-2010, 13:37 PM
Maybe he meant IFA, they are a trickly lot

slindsey
01-02-2010, 15:47 PM
Thanks for the replies! What does section 21 notice entail and where could I find one?

jeffrey
01-02-2010, 16:28 PM
Thanks for the replies! What does section 21 notice entail and where could I find one?
Click on 'Agreements', at top or bottom of LZ screen display- and there it is, in the fifth section down which is labelled Rent Arrears and Evictions.

fletchj
01-02-2010, 16:31 PM
I wouldn't overreact to this. Bankrupts frequently make good tenants. What is often happening is that they are struggling under a mountain of debt. These are frozen as part of the procedure. The official receiver will then go through their living expenses and debts and set the payments according to what they can afford. The rent is one of expenses that will always be allowed in full unless clearly out of proportion.

The practical result of this is you now have a tenant who has enough money to pay the rent and is not being hounded to pay large amounts to credit card companies and the like. They will frequently, therefore, be more rather than less able to pay the rent.

You may get a letter from the OR to confirm the tenancy and level of the rent, this is purely to check that the tenant is telling the truth and nothing to worry about.