Bankrupt Housemate Advice

rsm123

Hi,
I happened to find out my housemate has just been declared bankrupt.
He pays rent (just) with his benefits etc.
Can someone explain how this may affect my credit. I want to buy a house when I move out in six months - will this damage me as well as him.
We are on a joint tenancy but assuming that full rent will be paid by end of tenancy.
It's how his being declared bankrupt affects my rating I dont understand.
Any advice on how it may affect me and what i should be doing to make sure i am protected would be good.

fiveyearplan

Bankruptcy is personal so it won't affect you in any way if you don't have any joint accounts.

rsm123

Thanks for information,
The joint tenancy agreement we have - is he still liable to pay this even if declared bankrupt? Or it this written off with other debts. there are six months of payments left

crowman19

I'm not 100% certain but it could be down to you the outstanding payments. If he doesn't pay his share that is.

crowman19

If it was a mortgage in joint names the debt would all be down to the non bankruptee in a case like this.

rsm123

Its just a standard tenancy agreement for renting we have.

I understand that if he disappeared off face of planet i am liable.

But i presume (quite possibly wrongly!) that as he gets housing benefits this should be used to pay for his housing..

crowman19

If he pays his share then no problem. But I don't think his share is written off in a case like this when he's gone BR.

Basically just hope that he pays his share of the rent.

rsm123

makes sense, just have to hope he keeps paying then!
Thanks for info.

skylight

The lease will continue and he will be liable for normal rent payments after his BR (under the normal way with usual rent agreements). But, if he owed any rent up to the BR date, then his liability to that will have been "written off". The joint tenancy leaves you both liable? Then you are for any debt he has left prior to BR. If you had seperate tenancies then it would have been different.

rsm123

We definately have a joint tenancy, he is £1300 in arrears but says its due to waiting for a housing association back dated payment.
The agency has given him until end of October to make that payment on that understanding.
He was declared BR two weeks ago.
The agency has not yet made any formal proceedings.
From what i understand he has to delcare that £1300 on his BR forms ?- so I am then going to have to pay it?
Thanks everyone for advice so far - very helpful

skylight

Is he not paying his housing then??? If you know this, you need to get the LL to act ASAP as you will end up owing all the rent. However, as a joint tenancy which you are liable for too, the LL may not give a hoots about him and consider you the more mature one and chase you.

EDIT: Sorry - crossed with your post.

Well, if he gets the LHA paid up he should pay the amount to his rent, or it could be fraud (taking something for something he doesn't owe is deception). Theoretically the LHA may not pay out up to his BR date as he is no longer liable for that debt - he could argue that he needs to pay it to remain housed. Its tricky, I would not want to be in your shoes but perhaps make an appointment with Shelter or a solicitor (who knows housing/BR) as you could end up being liable for all the rent.