DMP Journey - Posisble spanner in works

gorskiii

I started my DMP last Autumn after reading numerous threads on here (which proved extremely helpful). It’s all going well and on the road to being debt free in a few years.

However, there could be a potential spanner in the works and hence my new post. I’m a guarantor for my niece on her rented property. The contract expires mid-July and she is 1.4K in arrears of her rent due to losing her job. 

The rental company contacted me the other week re this and said the landlord is wanting the owed money and asked them to contact the guarantor.

I didn’t think at the time but when I started my DMP should I have advised the rental company? I don’t think I’d be able to pay what is owed and I’ve told her to speak to them to arrange a repayment plan. Which she said she’ll do but hasn’t to date.

i know I’ll be liable for the money but how can I pay it when I don’t have it? Do I need to talk to them myself? Just not sure where to start with it all…

RAS

I'd strongly suggest that you go over to the Renting and Buying forum here and ask about guarantees.

You need a copy of the guarantee you signed. There are certain very specific things that the LL or their agent needed to do when the guarantee was set up. If they didn't get that correct, they can't enforce the guarantee.

I'd suggest you need to know whether it is enforceable before you worry further.

gorskiii

Ah brill. I didn’t know that that was a section of the forum. Will head over there. Many thanks.

fatbelly

You and your niece will be jointly liable for any debt that remains from her tenancy.

As she's still there she should claim what she can from Universal Credit and keep looking for work. It does sound like she may lose or walk away from the tenancy.

Just to be clear- you should not make payments at this stage or you could be propping her up when she needs to be resolving this herself

If the tenancy ends and becomes a quantified debt...

You could discuss with her what she can contribute. As for you, I suggest that you add the debt to your debt management plan and recalculate the amounts to creditors.

If the landlord's agent starts a court claim, then you offer that amount and look to the court to make an instalment order