DRO and joint rental contract

david_m4

Hi guys

I'm considering a DRO because my debts are hopeless. I'm only able to make the minimum payments by not putting in my fair share of the rent. I have told my wife I'm in trouble and she is on my side :-)) but she's not too happy about the prospect of continuing to pay all the rent herself for our house. She has a good salary and can pay, but it doesn't leave her much extra.

Would I be able to stop paying my debts and devote that money to paying rent, and still qualify for a DRO? Given that I wouldn't be homeless if I paid nothing, I'd just nark my wife off a lot and possibly end up in divorce court rather than bankruptcy court :-(

Since we moved in together in January this year, I've not been able to pay anything towards the rent. In the spring I was doing all the food shopping, because I was working full time, but now I have gone back to part-time hours so I can make progress with my studies (a distance learning degree). Would the OR expect me to look for a full time job instead of getting a DRO?

The other problem is there's a no-bankruptcy clause in our tenancy agreement. If I had to tell the landlord and they asked us to leave, I think we could cope with that. The house is a bit too big and we probably should have rented a flat instead. My wife's credit rating is good enough to get another tenancy, and if there's no other solution I could just live there quietly without telling anyone until I'm discharged. But I am really worried they would evict me from our current property but expect my wife to stay on by herself, still paying all the rent. Does anyone have experience with this?

Thanks for all replies.

Dave

J_Chapman

Would I be able to stop paying my debts and devote that money to paying rent, and still qualify for a DRO? Given that I wouldn't be homeless if I paid nothing, I'd just nark my wife off a lot and possibly end up in divorce court rather than bankruptcy court :-(

You circumstances would be evaluated on your contribution to the household bills (rent, utilities, food etc). After which your disposable income would be determined, which in turn your eligibility for a DRO.

Since we moved in together in January this year, I've not been able to pay anything towards the rent. In the spring I was doing all the food shopping, because I was working full time, but now I have gone back to part-time hours so I can make progress with my studies (a distance learning degree). Would the OR expect me to look for a full time job instead of getting a DRO?

No

The other problem is there's a no-bankruptcy clause in our tenancy agreement. If I had to tell the landlord and they asked us to leave, I think we could cope with that. The house is a bit too big and we probably should have rented a flat instead. My wife's credit rating is good enough to get another tenancy, and if there's no other solution I could just live there quietly without telling anyone until I'm discharged. But I am really worried they would evict me from our current property but expect my wife to stay on by herself, still paying all the rent. Does anyone have experience with this?

If there are rent arrears, this would be listed in the DRO and the landlord notified. If they are joint arrears then your wife will be liable for the full arrears.
If there are no arrears then the landlord would very unlikely be notified and if payments are regularly made and up to date, then most landlords will not request the property back.

david_m4

Do you know if there's a minimum period for which I would need to have been contributing to household bills, for the OR to take it into account?

J_Chapman wrote: »

You circumstances would be evaluated on your contribution to the household bills (rent, utilities, food etc). After which your disposable income would be determined, which in turn your eligibility for a DRO.

There are no rent arrears, and in the worst case my wife is able to keep paying everything. So should I just not tell my landlord? Would the OR, or the Approved Intermediary, warn me when I applied for a DRO if they were going to let him know?

J_Chapman wrote: »

If there are rent arrears, this would be listed in the DRO and the landlord notified. If they are joint arrears then your wife will be liable for the full arrears.
If there are no arrears then the landlord would very unlikely be notified and if payments are regularly made and up to date, then most landlords will not request the property back.

J_Chapman

I don't believe there is a minimum period. Your financial statement just has to reflect your financial circumstances.

If there are not rent arrears, your landlord probably would not be notified by the Insolvency Service and your intermediary would not need to contact them either.

Your landlord would have no other way of finding out that you have completed a DRO other than to check the Insolvency Service website (which is very unlikely). Most landlords would probably only want to know that their rent will be paid on time and not have your tenancy fall into arrears. Given all the above it is up to your judgement if you tell your landlord and whether there would be any consequences.