Bankruptcy and rent areas

Maria2000

If I do a personal bankruptcy can I still back pay my rent areas if I carry on living there, or is it classed as preferential treatment if my LL

mwarby

your rent arrears ?

if yiu have a suspended eviction, yes you can pay them, if not they are are treated the same as any other debt (so yes preferential payments could be an issue) https://forums.moneysavingexpert.com/discussion/5970669/question-regarding-bankruptcy-rent-arrears maybe of interest

Maria2000

Thanks, I wonder what most people are doing in these trying times

Fighter1986

The Official Receiver will be understanding - if withholding payment from rent arrears would mean your eviction, the OR will be sympathetic of this.

Rent Arrears are considered a priority payment anyway. 

Maria2000

Fighter1986 said:

The Official Receiver will be understanding - if withholding payment from rent arrears would mean your eviction, the OR will be sympathetic of this.

Rent Arrears are considered a priority payment anyway. 

How do you prove it would result in eviction 

nowadays nobody is getting evicted even squatters 

mwarby

reading through the bankruptcy manual (link in the other thread) it would seem

- rent arrears are a provable debt, by default the landlord is treated as any other creditor

- the manual recognises the the bankrupt may wish to continue paying to prevent eviction

- the manual calls out that the OR should not object to none excessive arrears repayment if the is a suspended eviction or following a voluntary agreement between bankrupt and a landlord threatening a repossession order

so it seems that although its not automatic that arrears can be repaid in all circumstances, arrears can be repaid where not doing so would put the bankrupt at a real risk of eviction (although perhaps needs to  be more than I'm worried the landlord may try and evict me because I'm behind, it seems that the landlord should be taking action of some form). I would certainly discuss arrears with OR at interview and also consider clearing arrears before bankruptcy if practical (the OR would be harsh IMHO to see repaying arrears which could see you homeless as preferential payment worthy of further action)

ToxtethO'Grady

If you've been to court and have a Suspended Possession Order (SPO) the OR will usually allow the payments if they are not excessively high. Even if there is an SPO it can be varied and Shelter (if you're in Scotland they have a different part of their website) are the best people to speak to about all housing issues.

If you have arrears over 8 weeks or 2 months (if your tenancy says you pay weekly it's 8 weeks, tenancy says monthly it's 2 months) this is mandatory grounds to go for seeking possession (Notice of seeking possession - Section 8). You could argue that you need to get your arrears below this amount to stop the threat of eviction.

And at the end of this it is up to your landlord if they start possession proceedings or end the tenancy (section 21 Notice to quit) after the lockdown ends. Local authority, housing association landlords are usually okay, private landlords are not.

With rent arrears it's always best to check if your tenancy agreement says anything about insolvency/bankruptcy and ask your landlord/housing support office how they would view it and get any response in writing! If they won't put it in writing I'd always try to come to an agreement with the landlord and, even if you can't, still pay whatever you feel you can afford towards the arrears.

Minkym00

How much are your rent arrears, what is your current rent and how much are you paying back monthly?

tom9980

harryharry305 said:

Can anybody offer clarification on the new rules about when eviction process is allowed to start?

is it true that LL can’t even start the process until September?

will it maybe be extended yet again come September if there are more on and off lockdowns?

You already know the answer to this you have had it answered using your various other now banned usernames.

mwarby

I think for most in this thread they are interested in avoiding the landlord wanting to evict in the first place, by paying down rent arrears, rather than hoping to dodge eviction for a few months

ToxtethO'Grady

Possession and eviction are 2 different stages for rent arrears.

If you have received an eviction notice this will be on hold until the lockdown ends however it will still be enforceable as soon as it ends, you can check with your local court if they are doing eviction hearings as these are considered an emergency. A possession hearing is not.