Mate going bankrupt tomorrow help

paul01609

Some one we know is going bankrupt tomorrow,they have been told by cab not to include there rent arears is this legal or could she be in hot water?

immoral_angeluk

The rent arrears are a provable debt in BR and will be included if he puts them on the form or not, however this does not stop the landlord taking repossession action or enforcing a Suspended possession order if he stops paying them, so he should include whatever amount has been agreed to repay the rent arrears in his expenditure and should continue paying to prevent him being at risk of losing his house.

paul01609

Thanks what i was wondering if they dont tell the or wll they be in trouble about the rent?cab told them not to say any thing about it

immoral_angeluk

paul01609 wrote: »

Thanks what i was wondering if they dont tell the or wll they be in trouble about the rent?cab told them not to say any thing about it

Well whoever told him that should know better! they've basically advised him to withold info from the OR which is a big no no. I also work for CAB and you should always declare rent arrears if you're having to include payments towards it in your expenditure. If you're including payments toward rent arrears but don't include the debt in your unsecured creditors list the OR will want to know what's going on and why he's not put it on there! As I say, it will be included regardless but he risks losing his home is he doesn't maintain payments towards the arrears.
If the OR thinks he's been in any way deceitful it could lead to him getting a Bankruptcy restrictions order.

paul01609

Many thx will pass on the info

immoral_angeluk

paul01609 wrote: »

Many thx will pass on the info

No worries