Massive rent arrears + lack of mental capacity

NotCharlieBrown

I have a friend who is mentally unwell and owes £9,000 rent arrears.  He became unwell because the property he was living in had long-standing disrepair (going back several years).  He has now abandoned the property and moved elsewhere.  He receives disability benefits: EESA + Severe Disablement, DLA, and Housing Benefit (the old legacy benefits).

Given that he is reliant upon these disability benefits, what action can the landlord take to recover the rent arrears?
As my friend has lost mental capacity (due to having to live in his former house with disrepair during Covid19 lockdown), what action can be taken against a defendant/debtor who does not have mental capacity?

Thanks

tacpot12

As he has vacated the property that the arrears relate to I don't think the landlord will be able to arrange for any deduction from your friends benefits. Such deductions are normally only agreed to prevent a tenant being evicted from his current property.
 
The landlord can still sue your friend for the money they owe. The Civil Procedure Rules require that someone who does not have capacity must have a Litigation Friend to represent them in court. The Court of Protection can appoint someone to act as the Litigation Friend if no-one applied to act in this capacity. You can apply to be their Litigation Friend, but there some suitability criteria. Have a look here: https://www.gov.uk/litigation-friend

They may be able to get some Legal Aid, but I would not bank on this. You may be able to find a charity that will take up his case. You might even be able to negotiate with the landlord on your friends behalf, but should not attempt to do so until you are appointed as their litigation friend.

This is a complex area and I would suggest that you don't get too involved unless you have the time and the willingness to research the issues thoroughly. One area of complexity is that the money is probably still owed even if the property was not maintained correctly. 

sourcrates

If their is no POA in place, then a deputyship may be required in order for someone to act on the clients behalf, there is a conciderable cost involved with this.

In what way has he lost capacity ? does he require care, if so, how is this paid, are the council involved, if they are, and there is no other choice, they may become deputy for him, as stated above, its a very complex issue.

onwards&upwards

I would politely suggest that insisting that severe and disabling mental health issues can be caused by living in a house in poor condition is not going to be helpful.  

Poor housing can definitely exacerbate mental health illness, or be a trigger for somebody already vulnerable and susceptible,  but by suggesting the property is the sole cause it actually minimises the seriousness of what he is going through and will make people less likely to take him seriously. 

gizmo111

NotCharlieBrown said:

I have a friend who is mentally unwell and owes £9,000 rent arrears.  He became unwell because the property he was living in had long-standing disrepair (going back several years).  He has now abandoned the property and moved elsewhere.  He receives disability benefits: EESA + Severe Disablement, DLA, and Housing Benefit (the old legacy benefits).

Given that he is reliant upon these disability benefits, what action can the landlord take to recover the rent arrears?
As my friend has lost mental capacity (due to having to live in his former house with disrepair during Covid19 lockdown), what action can be taken against a defendant/debtor who does not have mental capacity?

Thanks

Who assessed that he does not have Capacity?
What support/treatment is he getting?
The landlord can take him to court for payment of the arrears, but any judgement is only going to be able agree small token payments out of his benefits.

fatbelly

It's a non-priority debt now and it's up to the landlord what they do.

Smart ones cut their losses at this point as court action is costly and the ex-tenant often just bungs the debt into a bankruptcy or DRO, as seems possible here.

Galloglass

Smart ones cut their losses at this point as court action is costly and the ex-tenant often just bungs the debt into a bankruptcy or DRO, as seems possible here.

Always surprised at that given the amounts at stake.. Even small commercial debts are assigned but never seen rental debts assigned. But I may be looking in the wrong place.

fatbelly

Galloglass said:

Smart ones cut their losses at this point as court action is costly and the ex-tenant often just bungs the debt into a bankruptcy or DRO, as seems possible here.

Always surprised at that given the amounts at stake.. Even small commercial debts are assigned but never seen rental debts assigned. But I may be looking in the wrong place.

Never seen it either - I've seen debt collectors appointed but never seen them assigned.

Happychappy89

I'd make sure your friend has been assessed by his GP or even a social worker or psychiatrist. Then if you have a proper capacity assessment in case of legal challenge, he will be protected.