Need advice please - DRO and tenancy agreement 26 February 2022 at 12:20PM edited 26 February 2022 at 12:20PM in Bankruptcy & living with it 3 replies 177 views

CK1223

Hi everyone

I'm just looking for some advice please. I have finally taken the plunge and begun proceedings to apply for a DRO. I spent a good hour on the phone to Stepchange yesterday, who said that they feel that a DRO is the best place of action for my circumstances.

I have just checked my tenancy agreement and have seen the following:

"Forfeiture/Breaches of this Agreement
If at any time during the Tenancy -

c. The Tenant becomes Bankrupt or enters into a Voluntary Arrangement with his creditors;

Then the Landlord will be entitled to take immediate steps to recover possession of the Premises from the Tenant by issuing proceedings for possession in the appropriate court."

Does this mean that, if I enter into a DRO, my landlord will know about it and evict me from my property?

I rent through a lettings agent and have never been late with my rent in the time that I have lived here - in fact I always pay it a week before it is due - so there are no/have never been any rent arrears and my rent will not be included on the DRO.

Starting to panic a bit now after reading that, as other than a DRO I really don't see how I will ever be able to repay my debts without the DRO.

Thank you

luvchocolate

Hi when I BR the examiner told me my landlord would not be notified.i was on good terms with him however so I made contact and told him.  No problem at all.
Be worth while also checking any contents insurance as mine had a clause about BR and they closed the account but I had no problem getting cover elsewhere but check the assumptions and declare it.
Car insurance was fine I notified them and no problems 

Platespinner123

Hi there,

Your landlord won't be notified unless you have arrears with them (and you must include any such arrears in a DRO).

But as it happens, that clause doesn't mention a Debt Relief Order, directly or indirectly. A DRO is neither Bankruptcy nor a Voluntary Arrangement. If it mentioned 'any formal insolvency procedure', that would encompass a DRO as well, but it doesn't. 

I would simply not say anything to the landlord. You have no obligation, legal or otherwise, to do so.

As I'm sure Stepchange have advised, any organisation (including a letting agent/landlord) that runs a credit check in the next 6 years will see that there is a DRO, as well as any other info on your credit report. So it can complicate private renting in the future. But the decision always rests with the landlord/agent, so you can always try to discuss it and explain beforehand.

MEM62

If your landlord is using an agent that maybe a standard clause in their AST.  Speaking as a landlord, I would not evict on that basis if my tenant had a good history of making rent payments and looking after the property.  Think about it, a good tenant is worth keeping.  A new one is a risk.