Rent arrears and on benefits

su2024

Hi looking for some advice please

In a situation of currently owing £7,800 pounds in rent arrears and being evicted due to unfortunately losing job because of illness and disability and couldn't pay rent after paying it for 1yr and a half reliably with no prior arrears

Realistically if the landlord goes to court to claim repayment of the arrears

1. What is the minimum amount that they can realistically take per month?

2. And would this be out of my bank account via a mutually agreed standing order amount or would they take it straight away out of your benefits before it gets to your bank?

3  Would they ask for proof of my incomings and outgoings and have to show bank statements first?

I am on PIP benefits £737 per month and ESA £732 per month = £1469 but then I have food and other bills to pay and medical aids/health items etc so roughly how much could they take? Is there a minimum amount they would take?

Thanks

Browntoa

Is the landlord actually looking to get the arrears or is the court action to evict?

elsien

In some circumstances, arrears can be taken from income related benefits at source so they would be deducted before you got the benefits.
is your ESA income related or contribution based?

https://www.gov.uk/government/publications/how-to-request-deductions-from-benefit-a-guide-for-creditors/third-party-deductions-from-benefits-a-guide-for-landlords-rent-arrears-and-service-charges

This is the guidance for how much they can take.
https://england.shelter.org.uk/housing_advice/benefits/what_to_do_about_universal_credit_deductions_for_debt

is it a private landlord or social housing?

Grumpelstiltskin

Have you claimed Universal Credit and help towards your rent?

DisabledDan

su2024 said:

Hi looking for some advice please

In a situation of currently owing £7,800 pounds in rent arrears and being evicted due to unfortunately losing job because of illness and disability and couldn't pay rent after paying it for 1yr and a half reliably with no prior arrears

Realistically if the landlord goes to court to claim repayment of the arrears

1. What is the minimum amount that they can realistically take per month?

2. And would this be out of my bank account via a mutually agreed standing order amount or would they take it straight away out of your benefits before it gets to your bank?

3  Would they ask for proof of my incomings and outgoings and have to show bank statements first?

I am on PIP benefits £737 per month and ESA £732 per month = £1469 but then I have food and other bills to pay and medical aids/health items etc so roughly how much could they take? Is there a minimum amount they would take?

Thanks

The concern I would warn you of is that some Councils will consider you intentionally homeless if you have arrears, they may require you make payments to your old Landlord before or during exercising their Housing Duty.

Different Councils have different approaches but with such a shortage of homes, even for those with priority need, they seem to do anything they can to avoid their housing duty.  

Council have passed off Housing Benefit to the DWP it may be the other links are relevant about repayment.

Wherever you end up I would advise you ask that your rent is paid direct to your new Landlord, most HA's insist on this anyway, but you can do it on the basis that you struggle managing your money.  If the rent is taken at source then you will not dip into it and will budget more effectively. 

funny_bunny

su2024 said:

Hi looking for some advice please

In a situation of currently owing £7,800 pounds in rent arrears and being evicted due to unfortunately losing job because of illness and disability and couldn't pay rent after paying it for 1yr and a half reliably with no prior arrears

Realistically if the landlord goes to court to claim repayment of the arrears

1. What is the minimum amount that they can realistically take per month?

2. And would this be out of my bank account via a mutually agreed standing order amount or would they take it straight away out of your benefits before it gets to your bank?

3  Would they ask for proof of my incomings and outgoings and have to show bank statements first?

I am on PIP benefits £737 per month and ESA £732 per month = £1469 but then I have food and other bills to pay and medical aids/health items etc so roughly how much could they take? Is there a minimum amount they would take?

Thanks

Is your landlord HA/council or private? UC or HB pays full rent or is there any short fall - bedroom tax or non-dep deduction etc.? 

To answer your points (assuming it's HA/Council as private landlords are unlikely to let rent arrears go that level):

1. Court will decide if your landlord goes to court; plus a court fee, think usually £355 you have to pay. Usually you have to make an arrangement with your landlord according to court order through SO/DD etc. or else you will be in breach of court order and landlord can apply for outright posession.

2. If you are on UC - landlord can apply for APA (direct rent payment) and TPD (for arrears, DWP will decide not landlord as someone mentioned above). PIP will stay untouched, deductions will be from ESA.

3. Likely yes, if this goes to court.

My personal advice, please speak with your landlord and explain your circumstances before they send it to court (they will have to issue a NSP which gives you 28 days to respond/engage, pre-action protocol); make an arrangment to pay full rent+extra towards the arrears (ask what's the min they would accept) and stick to that.

Social housing landlords go to court where all attempts to engage with tenant fails to resolve such matter.

fatbelly

su2024 said:

Hi looking for some advice please

In a situation of currently owing £7,800 pounds in rent arrears and being evicted due to unfortunately losing job because of illness and disability and couldn't pay rent after paying it for 1yr and a half reliably with no prior arrears

Realistically if the landlord goes to court to claim repayment of the arrears

1. What is the minimum amount that they can realistically take per month?

2. And would this be out of my bank account via a mutually agreed standing order amount or would they take it straight away out of your benefits before it gets to your bank?

3  Would they ask for proof of my incomings and outgoings and have to show bank statements first?

I am on PIP benefits £737 per month and ESA £732 per month = £1469 but then I have food and other bills to pay and medical aids/health items etc so roughly how much could they take? Is there a minimum amount they would take?

Thanks

I'm interpreting your question differently to others. I'm interpreting it as I will be leaving this property.and expect the landlord to be making a court claim for previous tenancy rent arrears.

Courts normally expect repayment of a debt in 3-5 years, so £150 a month, though each judge can make their own decisions and I have seen ccjs for £1 per month. You self-declare inc/exp on the court form. You can make the payment by any means you want

If there is no instalment order or you do not respond then the court orders full payment so that the claimant can look at enforcement options.

There is NO OPTION TO ENFORCE A CCJ BY ATTACHMENT TO BENEFITS. They can attach to earnings, or a house that you own, or try to freeze a bank account to access your savings.

The most likely method is to ask a bailiff to try to access your 'goods', even though this has a high failure rate.

If you have other debts, or even if you don't you may want to look at a DRO to tidy the mess up after your situation becomes stable again. These are now free and deal with debt up to 50k

DisabledDan

fatbelly said:

su2024 said:

Hi looking for some advice please

In a situation of currently owing £7,800 pounds in rent arrears and being evicted due to unfortunately losing job because of illness and disability and couldn't pay rent after paying it for 1yr and a half reliably with no prior arrears

Realistically if the landlord goes to court to claim repayment of the arrears

1. What is the minimum amount that they can realistically take per month?

2. And would this be out of my bank account via a mutually agreed standing order amount or would they take it straight away out of your benefits before it gets to your bank?

3  Would they ask for proof of my incomings and outgoings and have to show bank statements first?

I am on PIP benefits £737 per month and ESA £732 per month = £1469 but then I have food and other bills to pay and medical aids/health items etc so roughly how much could they take? Is there a minimum amount they would take?

Thanks

I'm interpreting your question differently to others. I'm interpreting it as I will be leaving this property.and expect the landlord to be making a court claim for previous tenancy rent arrears.

Courts normally expect repayment of a debt in 3-5 years, so £150 a month, though each judge can make their own decisions and I have seen ccjs for £1 per month. You self-declare inc/exp on the court form. You can make the payment by any means you want

If there is no instalment order or you do not respond then the court orders full payment so that the claimant can look at enforcement options.

There is NO OPTION TO ENFORCE A CCJ BY ATTACHMENT TO BENEFITS. They can attach to earnings, or a house that you own, or try to freeze a bank account to access your savings.

The most likely method is to ask a bailiff to try to access your 'goods', even though this has a high failure rate.

If you have other debts, or even if you don't you may want to look at a DRO to tidy the mess up after your situation becomes stable again. These are now free and deal with debt up to 50k

As usual you are spot on to point out the Court view FatBelly.

Most Landlords know that they can't get blood out of a stone so they are best to approach the DWP to get what they can.

Like any debt they can bring the matter before the Court during the next 6 years and then have 6 years to enforce the CCJ, many wait a year or two to see if situation has improved, they use the debt collectors that escalate to High Court to track the Tenant who by that time will be in a new place and have registered for Energy/Broadband which puts them on the Credit Reference Database.  

The HCEO route can be futile if the OP knows how to keep them out, not engage with them, their car may be a target if it is worth enough.  

I don't have anywhere near as much income as the OP so I imagine a DRO would leave too much disposable income unless they are spending all their income.

I think the best solution for the OP might be to agree with the Landlord that they will arrange to get the Housing Benefit element of the benefits paid direct, something the Landlord can ask for anyway after 6 weeks of arrears.

What the Council will want to know is what caused such huge arrears, is the property bigger than the OP needs thus causing them to get the LHA rate of a smaller property or is the LHA itself lower than the rent.  I have known people in this situation to be moved out of the area to the armpits of the UK and still be asked to make a contribution to paying off the arrears before a housing duty will be exercised. Councils do this with reciprocal agreements.

funny_bunny

@fatbelly "Courts normally expect repayment of a debt in 3-5 years" - is that for rent arrears or any debt i.e. cc, bank loans etc.?

fatbelly

funny_bunny said:

@fatbelly "Courts normally expect repayment of a debt in 3-5 years" - is that for rent arrears or any debt i.e. cc, bank loans etc.?

It's no more than a 'rule of thumb' when responding to a county court money claim.

Dan - the op is on UC and PIP. PIP is disregarded as income in a DRO as it is paid for a care or mobility need. I would be surprised if the op is showing more than £75 surplus. UC isn't that generous.

I do agree with the other posters that, if staying put and avoiding eviction is an option, then you should consider that. The root question here that you could answer for us is - if evicted, do you have somewhere else to live?

enthusiasticsaver

su2024 said:

Hi looking for some advice please

In a situation of currently owing £7,800 pounds in rent arrears and being evicted due to unfortunately losing job because of illness and disability and couldn't pay rent after paying it for 1yr and a half reliably with no prior arrears

Realistically if the landlord goes to court to claim repayment of the arrears

1. What is the minimum amount that they can realistically take per month?

2. And would this be out of my bank account via a mutually agreed standing order amount or would they take it straight away out of your benefits before it gets to your bank?

3  Would they ask for proof of my incomings and outgoings and have to show bank statements first?

I am on PIP benefits £737 per month and ESA £732 per month = £1469 but then I have food and other bills to pay and medical aids/health items etc so roughly how much could they take? Is there a minimum amount they would take?

Thanks

Are you claiming Universal credit? You should be prioritising your rent over other bills. the arrears are high so how much is the rent and how big is the property? 

Are you trying to stop the eviction or are you moving out?

 If it goes to court then yes they will ask for proof of income/expenditure.