paying rental deposit just prior to going bankrupt

22bear

Hello everyone..

Just a little advice please, just to make sure...when renting a flat just before going bankrupt, what will be the views of the OR with regard to paying the security deposit/bond...I am looking to rent in a few weeks from a private landlord and expect to have to pay at least a one months rent as deposit, but I've seen quite a number of private LLs on Gumtree are asking for 2 months rent as a security deposit, this in addition to the months rent in advance...

When I go bankrupt soon after paying this, will the OR accept my need to pay the deposit fees as long as I can either show evidence myself or by them contacting my LL? What I'm worried about I guess, is that (as long as the rent and deposit is reasonable) that the OR wont seek to claim this back from the LL as a financial asset?

BRSurvivor

You have to live somewhere, right?

We moved in to rented a few months before BR, and put down a pretty standard 1.5months rent as deposit, and the months rent up front.

OR never even questioned it.

What you are not allowed to do is favour creditors, or act recklessly - ie: if you pay off a £1000 loan to a friend, but owe £10k on cards and loans, you've favoured a creditor. And if you go out and spend £1000 on clothes shortly before bankrupt, you've been reckless (and may be pulled up on it).

HTH

PippaGirl_2

The OR are fine with you having money set aside for a set purpose if you can evidence what it is for eg have the bill, so a tenancy agreement would suffice. I've rented a few times and 1.5 times the rent has been the deposit needed, plus the first months rent.

22bear

Cheers, thanks!!