Landlord being made bankcrupt

[Deleted User]

Ok, long one.
Myself, my partner, child and mother in law all lived together, 6 months ago she decided she needed her own space so she moved out into a property that she rents from agency. She kindly said we could stay here and just pay her the mortgage payment and the amount for bills every month. We are living here very cheaply and (silly of us i know) with no real formal agreement.
Now I know she had a DMP in place when she moved out but today she has received a B10 from the land registry. I know she has received a couple of court orders too in the last couple of weeks. So I'm guessing one of her debtors have forced her into bankruptcy.
Im now worried sick, what does this mean for us? Is she going to loose the house and in turn leave us with nowhere to live.
We are not financially in a position at the moment to find a deposit for another property.
I THINK (don't quote me on this) the amount that the debt could be for is around £6000. I think the rest was included in a DMP, im not too sure why the £6000 wasn't.

HampshireH

Daft question. But why has she moved out of her house to pay out more on rent?

Surely you guys should have moved out into your own place. The bills would have been cheaper for her in her own home by the sound of it?

You need to speak to her about it and find out what is going on. That's assuming you know about it because she had told you and not that someone else has opened her post...

[Deleted User]

HampshireH said:

Daft question. But why has she moved out of her house to pay out more on rent?

Surely you guys should have moved out into your own place. The bills would have been cheaper for her in her own home by the sound of it?

You need to speak to her about it and find out what is going on. That's assuming you know about it because she had told you and not that someone else has opened her post...

I have no idea why she wanted to move out, we was in a position to rent our own property back then but she insisted she wanted to move out as she couldn't manage this property living on her own (her new house is considerably smaller than this one)
She told me about the court orders she received, I didn't ask too much about them. I only know about the B10 because she opened it while stood next to me. I work in a solicitors so see letters like this, but I dont know about this process.

Thrugelmir

If you MIL is being uncommunicative. See if there's a listing for her on here.

https://www.thegazette.co.uk/insolvency

Slithery

Does she have a BtL mortgage or is this consent-to-let on a residential mortgage?

[Deleted User]

Thrugelmir said:

There's nothing on there, thanks for the link. 
If im right in thinking, I think the b10 just means the debtor has issued proceedings and she's not actually been declared bankcrupt yet.

[Deleted User]

Slithery said:

Does she have a BtL mortgage or is this consent-to-let on a residential mortgage?

Sorry, I have no idea...

sammyjammy

Its more likely they'll just put a charge on her house for the sum owed.

greatcrested

Slithery said:

Does she have a BtL mortgage or is this consent-to-let on a residential mortgage?

amy12456 said:

.......We are living here very cheaply and (silly of us i know) with no real formal agreement.

My guess is that there is neither CTL nor a BTL mortgage.

Read:

Post 6: Repossession: what if a LL's mortgage lender repossesses the property?

Cakeguts

Is you mother in law paying tax on the rent that you are paying her?  I know you think it is just paying her mortgage but actually you are paying her rent which is then used to pay her mortgage. She needs to declare that rent payment for tax.

Cakeguts

amy12456 said:

HampshireH said:

Daft question. But why has she moved out of her house to pay out more on rent?

Surely you guys should have moved out into your own place. The bills would have been cheaper for her in her own home by the sound of it?

You need to speak to her about it and find out what is going on. That's assuming you know about it because she had told you and not that someone else has opened her post...

I have no idea why she wanted to move out, we was in a position to rent our own property back then but she insisted she wanted to move out as she couldn't manage this property living on her own (her new house is considerably smaller than this one)
She told me about the court orders she received, I didn't ask too much about them. I only know about the B10 because she opened it while stood next to me. I work in a solicitors so see letters like this, but I dont know about this process.

I am confused because in your OP you said that you were all living together so I don't understand the bit about her living in the house on her own. It makes no sense. Where is the money coming from for her rent?  You need to check that she hasn't had a silly idea like moving out and claiming benefits to pay the rent.