Staying with relative but need to go BR...

Red_sky_2

im desperate to move out before i go Bankrupt for two reasons:

Firstly, as i understand it, the process would be quite intrusive on my relative as "a member of my household", in terms of income and "household costs" etc. i really, really dont want to put them in this situation as they have been so kind to give me a roof over my head when i couldn't afford to rent anywhere. btw, they have said they dont mind if i go BR there, but i dont think they (or i!) actually know how it would affect them in reality.

Secondly, i have recently got a better salary (still only £9K/yr Net pay) so i can now afford rent. i dont have to pay rent at the moment so if i went BR, then i think the OR would not allow for rent costs and i might have to pay that money to the OR, and then i would be trapped living with my relative as i wouldn't be able to afford to pay rent anymore (btw i can't say i would pay rent to my relative as due to trust law etc, they are not allowed to charge rent for the property).

So, now i need to move out...the problem is that all the letting agents want to credit check, and my credit report will be VERY bad. should i tell them im about to go BR and so i WILL be able to pay my rent (as reasonable living costs are allowed by the OR).

btw, i might be able to use a guarantor for the letting agency, but im worried what would happen when i go BR, would my guarantor have any liabilities towards the BR?

also, even if i use a guarantor they said they still need to credit reference me! so they might still refuse me as a tenant.

help!! would really appreciate some advice/info before i make an application to an agency as there are only a few letting agencies round here that cater for my budget bracket.

rog2

Hi Red_Sky,

First of all, the bankruptcy process does not need to intrude into the finances of your relatives - this will depend on what basis you are living with them. If you are a lodger, or non-paying guest, and do not have any financial interest in the house, then it should have no effect on them whatsoever.
You would simply need to declare any payments towards your keep, as your own expenses.
The fact that your relatives are not allowed to charge rent could work in your favour if they ask you to move out, then they are effectively making you homeless and you could be eligible for council accomadation.

Anastacia

If you are made homeless the cuoncil only has to house your for 28days, the days of having to house you permanently are well behind us.

But if you do feel you have to move out then a shared house would seem to be the cheapest/less credit checkable accomodation? An all in weekly amount paid & no tenancy as such.

Good luck

Red_sky_2

Thanks for your replies.
I wondered about private landlords, but what should I tell them about the BR thing? If I tell them im about to go BR they will probably run a mile, but if I don’t tell them I would feel really bad (esp. if I was living in a house with them!) and they would probably find out anyway (does the OR inform landlords of bankruptcy?).

rog2

Red_sky wrote:

Thanks for your replies.
I wondered about private landlords, but what should I tell them about the BR thing? If I tell them im about to go BR they will probably run a mile, but if I don’t tell them I would feel really bad (esp. if I was living in a house with them!) and they would probably find out anyway (does the OR inform landlords of bankruptcy?).

You have no legal obligation to tell them that you are considering bankruptcy. However, if you were already bankrupt when you apply for the tenancy, you would then have an obligation to inform the landlord of your bankruptcy if asked.
Check very carefully the terms of any rental contract that you are asked to sign - some contracts contain a clause stating that if you are declared bankrupt during your tenancy, then the landlord may terminate the contract.
It really is worth showing any proposed rental contract to a solicitor or CAB.