Rent question...Am I trapped here?

DrMoosePLC

Went BR in Feb.

I rent a bedsit which is pretty dire in many respects. But is extremely cheap for where I live. It was all I could afford in year or so leading up to BR. Now I am rid of the debts I could probably afford a little bit better. But a few thoughts arise..

I presume most landlords, private or otherwise, will do a check and find out about the BR and turn me down. I'm presuming I am likely to find it impossible to rent? In my current place BR isn't an issue as I am already here, no checks are going to be carried out, plus he isn't the type to bother/care.

I thought I could save up say 6 months rent in advance -which presumably would change the story and allow me to rent somewhere else. To do so I would have to work myself half to death in the meantime (self employed) but would be up for it to get out of here. But would amassing this money - albeit for rent - be allowed? Couldn't they say I should stay where I am and give that money to creditors? Am I stuck?.. basically...

In the area I live my place is so unusually cheap anywhere else would HAVE to be more expensive. And if I don't want another damp bedsit without a window we're talking a mimum of double the price. I just wonder whether that will be allowed. The increase will be significant set against my current place but not set against the area. Can they demand that instead I move into a shared house perhaps?

Hmmmmm.........

lilybankrupt

So my understanding is this..

Presumably you have agreed your expenses as they stand now with the OR, including your current rent?

If you were to earn more you would have to declare this to the OR and risk having an IPA put in place for the next three years. But, if your rent was going up due to moving into a nicer place you may be able to say your new income is 'used up' by the extra rent.

I don't think the OR can dictate where you live, provided you don't suddenly move into a rented mansion

The bigger challenge will as you say be finding a landlord happy to rent to you (try private landlords via Gumtree etc) and also the whole 6 months up front thing which may be required. Because that would mean having extra income which isn't currently being 'used' but saved, and so the OR might want to take it.

I would simply ask your OR, whether you are allowed to earn but keep extra money for a flat deposit. I fear the answer will be no. But if you can put up with it for the rest of your BR year (and not get an IPA) then your earnings will be yours to keep after that, plus you'll be discharged re: landlord checks, so it will be a lot easier then I imagine.

elljay

You can save up from the money currently being allowed by the OR without earning anything extra. I was allowed £50 for food but have cut my spend to less than half that. That means I have £25 or so left to put by as savings. Each week!!! Which I have, for exactly the same purpose as you want to and it's grown very quickly. I have also cut the amount allowed for petrol by being careful so that has added to the savings.

I've had my expenditure/income reassessed recently and was still allowed that £50 - I think it's standard. So the savings grow even though I pay a huge IPA. If your allowances have been agreed the OR won't suddenly ask for them back just because you're frugal - or so I've been told.

Good luck with the flat hunting, I wonder at what point you have to tell a potential landlord that you're bankrupt? Hopefully they listen to reason and don't condemn out of hand.

TheGardener

Do you currently have an IPA? Squirrelling away some extra from your regular budget is allowed - care would need to be taken if earning extra though.
Another thing you would find very useful is excellent references from your current landlord.
Its also worth asking (unless you live in the south east) if your council have any vacant properties. Believe it our not our local council have over a 1000 empty properties due to the bedroom tax - mostly 2 or 3 bed high rise which are unaffordable for singles and couple on benefits (bedroom tax) and they wont let high rises to those with young children . The council here are letting them to people who are not on the waiting list as long as they are not receiving housing benefit so a single or couple can take on a 2 bed so long as they are paying the rent themselves. Councils don't have an issue with BR and don't require deposits so long as you have a good reference (no previous rent arrears or ASB issues) Its worth asking. If it was possible - then you just tell the OR your circumstances have changes and change your SOA accordingly.

doomandgloom

Hi

I'd be interested to know if anyone has a definitive answer to the saving up aspect of the OP's question, or if anyone has had the same experience.

I'm currently living with partners with my little one and although I pay them rent we really are in desperate need of our own space. The only way to do this is to either try and secure a promotion or work overtime. Not only do I need to save for several months rent but I would need to purchase furniture (can't exactly half inch the parents sofa, fridge, table chairs etc, you get the picture).

I'd rather not wait another 6 months to start saving (if I have to I will).

Is it likely that the OR may allow this? I can understand why they wouldn't and I feel the same as the OP, I'm housed so no need to find somewhere else but also how do you prove to an OR that any surplus gained is going to be saved and used for the intended purpose?

The advice I received when I asked a short while ago was to email and ask the OR if it would be allowed. I haven't done that as have had some contact with them regarding varying employment circumstances and at this moment in time I'd rather not bombard them. Plus they haven't been bothered to get back to me about some other queries, which is why I tend to fall back on this forum. If I ring them I'd rather be armed with more knowledge.

TIA

CKhalvashi

It's always worth being upfront with an agent, and ask them to speak directly with the landlord.

I've referred a number of bankrupts to various agencies in the last 8 years, and only one seems to have a constant problem (although they're a crap agency to deal with anyway; see my post on another thread from yesterday)

Agencies have come to see in the last few years that no circumstances are unique, therefore if it's allowable and you meet the standard income rules, there should be no reason to discriminate.

alastairq

.........besides which...unlike most 'clean' applicants, the Bankrupt...has no debt....so ..provided adequate income is there, will have no issues paying rent.

wildheart83

I went BR in Aug 2010, and rented privately from 2012 onwards, initially through word of mouth then through small ads/gumtree and then through agencies. The only time I've ever had an issue was when I went through a large agency, who not only demanded 6 months upfront, but when the tenancy was due for renewal, wanted the next 6 months upfront.

A glowing reference from your current landlord will really help you, but my advice is to look at private landlords or smaller agencies who will look at your application and circumstances rather than just doing an "affordability check."

DrMoosePLC

Thanks everyone for advice.

I am a self employed tradesman. When I asked my OR if I could save up a few grand for incase my van dies or if I need to replace a laptop (necessary for work) he said yes. It could be the same for renting a place but it's not really necessary to ensure I continue with my livlihood. Interesting one. I get the feeling if you are on a set income and not self-employed they can really make sure you have £50 left of your money each month but if you're self employed, running a business and have hugely fluctuating income they probably don't have the resources to delve that deep into it because it's way more complicated.

wildheart83

I would argue that where you live is absolutely as important as your laptop/vehicle etc. I was living in what can only be described as a hovel, with a horrendously unhelpful letting agent and only now that I've moved do I realise that I was on a downer the whole time, which hugely affected my work motivation, and ultimately my day to day health and wellbeing. Think of your frame of mind as a business tool, if it's not working properly it needs fixed just like a laptop etc.

You absolutely have the right to choose where you live; the discussion I had with my trustee (I'm in Scotland) led him to say that he couldn't tell me where to live, and he understood that if moving meant increased living costs, meaning a reduction in IPA then so be it.

Good luck with the flat hunting - I found it far more stressful than the whole BR process!

doomandgloom

Hi wildheart83

I found your response quite helpful. If you don’t mind me asking, what happened when you moved? Did you need to find any upfront rent? And if so how did you and the OR deal with this?

Sorry if that's too nosey!