Renting and bankruptcy...

MissMuppet

I'm in a bit of a situation, I plan to go bankrupt at the end of May once I've been made redundant from work... (there is another post on here somewhere about my situation so I won't go into all that again)

Anyway am relocating as my tenancy is also coming to an end and the landlord wants me out to refurbish the place.

So I was advised to get somewhere to live and then go bankrupt, but I've just checked out the tenancy application and it asks about CCJ's and bankruptcy. So I would tick No? But then it says underneath that if they find out I have got CCJ's or bankruptcy after I have moved in that could cause problems!

Now what do I do?

I really don't want to be homeless!

rog2

It is true that the OR can advise your landlord of your bankruptcy, although this is not always the case. You, personally, are under no obligation to inform a landlord, unless asked.
Is this tenancy agreement a 'standard' form from the agent, or is it 'specific' to the particular house/flat that you wish to rent?
You could try being up-front with the landlord/agent - if your existing tenancy is through the same agency, then they may take your payment record into account.
You might also try the Citizens' Advice Bureau - I know that when I was looking for advice, my local CAB offered to help me find rented accomodation.

Richard_S

MissMuppet wrote: »

I'm in a bit of a situation, I plan to go bankrupt at the end of May once I've been made redundant from work... (there is another post on here somewhere about my situation so I won't go into all that again)

Anyway am relocating as my tenancy is also coming to an end and the landlord wants me out to refurbish the place.

So I was advised to get somewhere to live and then go bankrupt, but I've just checked out the tenancy application and it asks about CCJ's and bankruptcy. So I would tick No? But then it says underneath that if they find out I have got CCJ's or bankruptcy after I have moved in that could cause problems!

Now what do I do?

I really don't want to be homeless!

Hi MissM,

I don't think there's anything wrong with telling a "little white lie" when you've got your back against the wall but if it's fairly certain that there will be problems in the future then it might be better to phone the agent and explain the situation. We had been declared bankrupt before we started to look for rented accomodation and it was a nightmare trying to find somewhere, but we did eventually.

You are not bankrupt yet so ticking the box "No" isn't a problem and the clause saying "could cause problems" is vague and doesn't specifically exclude people who go bust during the tennancy.

One of the member who posts on this forum works for a letting agency so he/she would be worth asking; I can't remember their name at the moment but I'll have a look around and see if I can find it.

Regards

Richard

MissMuppet

The form was just the standard one which I'm guessing I would have to complete. As I'm moving from Surrey to Kent the agents won't be the same so it will be a brand new landlord.

I was just thinking, if I paid 6 months rent up front from my redundancy/notice money would I get this back from housing benefit as I'll be unemployed and intend to claim it?

I'm at the point where I think going bankrupt right now would be my best bet and then see what problems I come up with later on.

I will try and get to the CAB though and see what they suggest.

MissMuppet

Ok this is the exact wording on the form:

Have you any County Court Judgments, Court Decrees, Bankruptcy, or Administration orders?
If YES, please detail on a separate sheet. Please also be aware that it may harm your application if you tick NO and are later found to have County Court Judgments, Bankruptcy Orders Etc.

Richard_S

MissMuppet wrote: »

Ok this is the exact wording on the form:

Have you any County Court Judgments, Court Decrees, Bankruptcy, or Administration orders?
If YES, please detail on a separate sheet. Please also be aware that it may harm your application if you tick NO and are later found to have County Court Judgments, Bankruptcy Orders Etc.

Miss M,

That's clearer, it doesn't make any reference to going bankrupt once the agreement has started, neither does it exclude people who have got CCJ's etc, it's merely saying "if you tell porkies on the form, it may harm your application".

Richard

MissMuppet

Richard_S wrote: »

Miss M,

That's clearer, it doesn't make any reference to going bankrupt once the agreement has started, neither does it exclude people who have got CCJ's etc, it's merely saying "if you tell porkies on the form, it may harm your application".

Richard

Yes you're right it doesn't, maybe I'm just stressing over this too much!

Do you think going with a private landlord would be less hassle than with a letting agent?

rog2

I agree with Rich - If, at the time of signing your form, you have no CCJs etc. then you are telling the truth. Who is to know what could happen tomorrow.
By the way, my sister had to pay 6 months rent, up front, purely because she had split from her husband and didn't want to give her previous address in case he came chasing.

rosysparkle

I think it might be me to whom Richard is referring.

If you have CCJs or administration orders, then don't tick that you don't have them!

The information you put on the form is going to a third party referencing agency such as Letsure who will do credit checks. If you don't think you will pass the checks, then before you pay a non-refundable application fee for a property, ask the agent whether your particular credit history is likely to come back with a pass, an accept with guarantor, an accept with six months advance rent, or a decline.

If you get accepted and pay six months up front, you can still claim housing benefit if you are entitled to it.

If you decide to go bankrupt before signing a new tenancy, it's very unlikely (near impossible) that any lettings agent will be able to offer you a tenancy because you won't pass the credit checks. An undischarged bankrupt is a straight decline, no way round it. You may be able to find a private landlord who doesn't do credit checks.

If you go bankrupt while in a tenancy, the OR may write to the agent/landlord. Most agency standard AST agreements contain a bankruptcy clause but landlords don't always enforce these, particularly if you have a good payment history. We currently have three existing tenants who have gone bankrupt in the last year, and they are all continuing their tenancies (all different landlords). In ten years, only one landlord has instructed us to give notice to a tenant following bankruptcy.

Richard_S

MissMuppet wrote: »

Yes you're right it doesn't, maybe I'm just stressing over this too much!

Do you think going with a private landlord would be less hassle than with a letting agent?

You're probably under a good deal of stress at the moment and that does make it difficult to think objectively.

The advantage of a private landlord is that they can make a decision based on the information you supply whereas letting agencys tend to have more inflexible systems in place.

We wrote an accompanying letter with our application emphasising why we would be good tenants; no loan repayments, overdrafts or credit card payments to make, a strict budget etc etc, and we were accepted.

Richard

Richard_S

Its rosysparkle - I knew it was a name that reminded me of some of the good things in life :rolleyes: