Renting before filing for bankruptcy

kes0904

In a bit of a dilema! We have an appointment to file for bankruptcy next Thursday and we have made appointments this weekend to view properties up for rent.

We have not missed a payment on our mortgage- this month will be the first month we can't pay.
We have missed payments on large card debts for the last month or so.

Will it go against us if we go to file for BR and have already started the process to rent somewhere? We have accepted we will need to give up our home
And is it likely to be acceptable to rent somewhere that costs the same or slightly more than our current mortgage (an extra £100- £150)?
We desperately need more room for the kids, and want the process to run as smoothly as possible for them- so would like to start moving asap
Don't want to get in trouble for appearing to use BR as a step up- we just want to get something positive out of the whole process

Thanks in advance for advice!

HOLIDAYMAD_2

if you have no defaults and that includes cc and loans then you should pass agents checks easily, but agents hate people that are BR and renting is not for life , it can chane in 12 months etc ,

The OR may question the purpose of moving to larger accom, if your on benefits then i can understand that that but if not, where does the surplus income end and are you actually insolvent.
Having larger accom maybe a ideal not a neccessaity , many families do live in very tight accommodation.

Ineedaname

You will be allowed a house of suitable size for your family at the going rental rate for your area.

How many bedrooms depends on how many kids you have, how old and what sex.

Certainly starting a new AST will be easier now than after you've gone BR. However, you may have left it a bit late as credit checks might happen before or after you go BR now, depends how quick the agents are.

BaldEagle

If it were me, I'd cancel the BR appointment and secure your living accommodation first. It'll be a darned sight harder to get a property after you've gone BR than now. It sounds like your credit check won't flag up too many problems so I'd sort that first.

As Ineedaname says, you need to be careful about the size of the accommodation. Whilst not set in stone, I believe the OR will look at your Local Housing Allowance (LHA) to see what the going rate is. Have a look on your local council website and see what the LHA is for a family of your size and look at properties in or around that figure.

Ineedaname

BaldEagle wrote: »

If it were me, I'd cancel the BR appointment and secure your living accommodation first. It'll be a darned sight harder to get a property after you've gone BR than now. It sounds like your credit check won't flag up too many problems so I'd sort that first.

Doh! Now why didn't I think of that?

kes0904

Thanks for the advice
We have found somewhere this morning- and have take advice from CCCS that rent can be in line with our mortgage payments
Now forms to complete for the credit check for us both- which I'm really nervous about!
No CCJ's against us- just the amount of debt we hold and our recent missed payments- I so hope we're accepted!

We've been advised to contact our mortgage company to say we can't manage to pay both the mortgage and the rent- so we will be stopping payments to the mortgage. They said the next step is to put the house up for sale, and then the OR will decide if they wish to take over the sale. Not sure it's worth rushing to do that as filing in the next week.

Getting really nervous about the next step of filing for BR on Thursday (credit check should only take 48 hours from Monday). Still wondering if it's best to put it back a week, in case the credit check isn't quick for the rent- but in other ways- we just want to get on with it as waiting makes me more and more nervous! We have got someone who will be a guarantor if necc, but not sure if some landlords/agencies won't even touch you if you are BR?

The phone is ringing a lot now from creditors- and really struggling to have the guts to pick up the phone
Does the court/OR take this into consideration as to how you deal with them- have spoken to some of the creditors but not all to let them know our situation
I keep thinking of all the "what if's" and really shouldn't- as it's not helping my state of mind!!

Ineedaname

What ifs are human nature I think, I spent a lot of time doing that so you're not the only ones!

It's great you've agreed on a property so quickly. If the credit checks don't come back soon enough then you can always postpone the Court from quite close to the date, they should be fine about it.

If you've told any of your creditors that you are about to go BR then that might be why they've ramped up the calls, trying to pressure you into paying instead. Best to just hang up on them as you're so close now.

kes0904

Thank you

I just can't bring myself to pick up the phone- but i can tell who's calling by the numbers!
I keep telling myself to be brave and speak to them, but just can't do it!
I hope the OR will understand why we've not tried to deal with them (I hope I'm getting my terminology correct!)

BaldEagle

If it were me, Kes, I'd postpone your BR until you're physically in the new property. As I said before, it's one less thing to worry about.

HOLIDAYMAD_2

change the number if its BT tell then your having nusiance calls ,mine was changed within minutes.
You have to hang in tough if this is the decision your gonna make, speaking to creditors will just stress you and you could end up paying them.
They are vile at this stage.
mine started just after 7 and went on all day and early pm, turn the ringer off.

Worcsman

kes0904 wrote: »

In a bit of a dilema! We have an appointment to file for bankruptcy next Thursday and we have made appointments this weekend to view properties up for rent.

We have not missed a payment on our mortgage- this month will be the first month we can't pay.
We have missed payments on large card debts for the last month or so.

Will it go against us if we go to file for BR and have already started the process to rent somewhere? We have accepted we will need to give up our home
And is it likely to be acceptable to rent somewhere that costs the same or slightly more than our current mortgage (an extra £100- £150)?
We desperately need more room for the kids, and want the process to run as smoothly as possible for them- so would like to start moving asap
Don't want to get in trouble for appearing to use BR as a step up- we just want to get something positive out of the whole process

Thanks in advance for advice!

Renting has been the biggest problem we have encountered, all the rest has been a doddle. We moved to rented, then went br then went for voluntary repo.. It was only after we wanted to move to another rented that our problems started. After looking and offering to rent places we were told "no sorry" various excuses given but basically bog off/

We had given up but recently tried again, this time though things were different, it was a new agent, one we hadn't tried before, they said that if we pay the whole rental period up front (6 months) then the credit check is voided, we will fail it still but as we are paying it all up front it doesnt matter. So they said...

As of today we have paid the fees for the useless credit check, on Monday or Tuesday we should then pay the deposit then sometime after all the monies for 6 months rent. I have to say though that this is news to us, Im hoping its not just the lettings agency trying to get 35 quid for a credit check they wont bother to do, only to be told later that the LL doesnt want a BR.

I'll post again as to what happened as I know that renting after BR is something that many of us have an interest in.

If I were in your shoes I would defo rent first then go BR after. Good luck to you.