Worried again - please help!!

FeelingLighterAlready

I am back to being worried now and was sure I was going to go bankrupt in a couple of weeks when I get paid again but now I am really worried I might lose my flat because of it & am having serious second thoughts, even though I know its my only real option unless I want to carry on paying off my appalling debt for the next 20 years :eek: . I really dont want to have to tell my landlord that I am doing this as I was honest about my bad credit before moving in & he still let me even after the referencing checks came back badly - only for financial reasons, I am a law abiding citizen

Someone who has been advising me has now said that they are quite sure my landlord will be told as will the utility companies and I could also lose my landline as well. Whilst I understand about those I just cant lose my home. Do you think I am in danger if I dont tell my landlodr or should I just be upfront. Just to point out that I've got a guarantor on my tenancy agreement which is making me nervous as I dont want him to worry, surely going bankrupt shows that I am trying to deal with the debt & that I will in fact be a lesser liability as I wont be struggling to pay off my creditors and also when I have a guarantor? I just dont know what to do and am feeling lost again. Please help me to know which direction to go in

peachyprice

Hi FLA,

Firstly unless you're includung utilities in your BR the OR will not tell the companies that you are BR, they have absolutley no reason to.

Secondly. concerning your home, the OR usually asks to see your tenancy agreement, so they will have contact details for your LL, however, some OR's tell the LL, others don't. Even if they did it's unlikely he will chuck you out if you're a good tenant who pays their rent on time etc., it's just not worth it to him if there's no problem and you don't owe him any money, especially as you have a guarantor in place. He already knew you had money problems and let you have the house, once you're BR you'll be debt free, and as you say no liability at all.

skylight

Utilities will not be informed by the OR unless there is a debt. Don't worry about that one and as long as you are still paying, you are not going to lose your landline - I don't know anyone who has!

If there is a BR clause in your contract, the OR is obligated to tell your Landlord about your BR. Only you can say how your landlord may react. As before, you have many things going for you - a guarantor, honesty, no debts so you can pay, you are already in and have paid him before on time, current credit climate means he is unlikely to get anyone else in for a while and may even be forced to take a reduced rent etc.....

You could plead with your OR not to tell your landlord but don't expect miracles there! Only you can decide what to do with it all.

FeelingLighterAlready

thanks so much. Thats a relief about the utility companies. The person advising me is actually the company I am with for my Debt Management Plan - which I have today cancelled, I dont need to be paying them their monthly fee if they're not liaising with my creditors anymore! I shouldnt have been paying them anyway and think I just stupidly got stuck in that trap of paying someone else to deal with my debts when I should've come on here or to the CAB, where genuine people are not trying to make a buck out of people like me, people who need genuine help.

Oh well at least I know now. I am going to go through with it I think and I also believe my landlord is having difficulty renting out 2 other flats in the house I am living in, so perhaps this is something to do with the current climate and he might appreciate the fact that I am in there & have been honest with him. I have only been there 2 weeks but was his tenant downstairs for over a year when I shared with 2 others, I just hope he realises I am better off bankrupt than as I am now & he does have the security of my guarantor on the tenancy. There is a bankruptcy clause in my contract but I dont know if I should wait to see if the OR mentions it to him or if he doesnt I may not need to?

Rylynn

Really hard if there is a clause, what does the clause actually say? dont leave yourself open to being thrown out in 7 days or something.

If you feel you could talk to him I would, be up front and say you are considering BR, you have not gone BR yet, and would he let you stay on if you do. If he is having probs letting out two other flats he may well say he is fine with it.

Rylynn

FeelingLighterAlready

Oh no what will I do?! :embarasse This is the clause in my tenancy agreement, although I'll have to double check the actual signed one at home but I am thinking its the same as this email version I have at work.

"4. Forfeiture
4.3 If the tenant should become bankrupt or assigns his estate or executes any Deed of Arrangement for the benefit of his creditors; or
then the Landlord, or his Agent on his behalf, may at any time thereafter re-enter upon the premises or any part thereof and resume possession of the premises and fixtures, fittings and contents therein. Upon such re-entry the Tenancy shall absolutely determine but without prejudice to any right or action or remedy which the Landlord may have against the Tenant in respect of any earlier breaches of the Tenant' agreement.
4.6 Without prejudice to the generality of the foregoing paragraphs, pursuant to the proteciton of the Eviction Act 1977, the Landlord may not re-enter residential premises without having previously obtained an Order from the Court."
What do you think people, should I tell my landlord before going through the courts with this?

Rylynn

Goodness I hate this type of clause, it really is hard to work out, does this mean if you OWE money to the landlord?

Some ORs do tell the landlords and others do not, do you get receipts for the rent?

FeelingLighterAlready

No I pay through my bank account by direct debit.....

Rylynn

So you get NO statement from the landlord at all???? surely that is not legal!

Now that could be tricky, is your landlord a law abiding citizen, ie is he declaring the income from the rents? I know you may not be able to answer that, but if he is not doing so he may get very nervous that his own business will be under scrutiny.

I still wonder if it would be wise to have a chat with him about thinking of going this route, and see what he says?

peachyprice

FeelingLighterAlready wrote: »

Oh no what will I do?! :embarasse This is the clause in my tenancy agreement, although I'll have to double check the actual signed one at home but I am thinking its the same as this email version I have at work.


"4. Forfeiture
4.3 If the tenant should become bankrupt or assigns his estate or executes any Deed of Arrangement for the benefit of his creditors; or
then the Landlord, or his Agent on his behalf, may at any time thereafter re-enter upon the premises or any part thereof and resume possession of the premises and fixtures, fittings and contents therein. Upon such re-entry the Tenancy shall absolutely determine but without prejudice to any right or action or remedy which the Landlord may have against the Tenant in respect of any earlier breaches of the Tenant' agreement.
4.6 Without prejudice to the generality of the foregoing paragraphs, pursuant to the proteciton of the Eviction Act 1977, the Landlord may not re-enter residential premises without having previously obtained an Order from the Court."
What do you think people, should I tell my landlord before going through the courts with this?

That's the important word here, MAY, not will. It's there to protect the LL from someone going BR owing him lots of rent and still being able to stay in the flat.

Rylynn

I agree Peachy and I dont think this young lady/lad is in arrears. I still think it may be best to ask, he knew you had financial problems and without the debts you will have more money and not have to worry about his payments, which is what I would tell him, mind you dont let him think you are worried about them, so maybe word it better than that.

Rylynn