Bankruptcy just before moving house

onthewayout

I've heard the OR always tells landlords about bankrupt tenants, even if there are no arrears and the rent can still be paid. Which would be pretty disastrous for me if my private landlord decided to pursue eviction. I know they won't always do it, but they could do and I have no reason to trust them.

If I go bust in the last month of my old tenancy, with a budget based on my new one, which landlord would be informed? I'll have a two week window between getting paid in August and moving house in September, and it will take me that long to save the £700 anyway. Assuming I could get a court date within that period?

PippaGirl_2

If a landlord wanted to evict you they would need to provide the court with valid reasons in law, unless your tenancy agreement forbids people who are BR, that won't be a reason. The only reason then it should be a problem is if the tenancy ends and they have reason to believe you will not pay on time. I have known peoplw go BR when in private rented and their landlords have been fine about it, though they had been reliably paying their rent each month and the landlord wasn't one of their creditors.

I think the problem with private renting often only arises when you want to start a new tenancy with a new landlord or agency and they don't want to take the risk of having a BR or previously BR tenant.

onthewayout

Okay, panic over. I've just dug out next year's tenancy agreement, starting in September, and it doesn't have a no-bankruptcy clause! The only thing I'm worried about is this:

Not to do or permit to be done any act or thing which might render void or voidable any policy or policies of
insurance in respect of the Property maintained by the Landlord, or which may cause an increase any increase
in the premiums to be payable in respect of any such policies.

I've heard many insurers will void a buildings policy if there is a bankrupt living in the house. And I don't have any way to check who my new landlord uses. Is that likely to be a problem?

PippaGirl_2

I've never heard of any such insurance issues, neither has a lawyer I know who advises about BR.

gas4you

The only insurance issues I've come across are related to commercial Public Liability insurance.

Many will not issue the said insurance if the proposer is bankrupt or has someone in the close family that has been bankrupt in the past 5 years.

Never heard of it applying to domestic insurance.

ademjohn

Even I to hadn't heard about applying any such rules to the domestic insurance..I had consulted a lawyer and he had informed about this..

alastairq

It concerns the proposer [and close family], which the tenant is neither. [the tenant doesn't make the claim, for example?]

I have discovered there are two ways BR can affect renting.

[1] is when a tenancy is applied for, through a letting agent. The letting agent will probably offset the first 6 month ASTL period via an insurer, who will run a credit check on prospective tenants.BR may well be a mark too far? [Letting agents often guarantee landlords the first 6 month's rent]

[2] Some..[not all] insurance companies, with regards to Contents Insurance.....load or reject proposers if either the proposer ..or anyone living in the household...is, or has ever been BR.

This patently ridiculous situation is being campaigned against by CitySicker in the thread below.

https://forums.moneysavingexpert.com/discussion/comment/53605787#Comment_53605787