Newbie needs some advice please

kittycatty

Hi the DFW forum said to ask here so I am asking

This is my first time posting here so please be gentle

I really need some advice re my financial situation.

For the past 3 years I have been in and out of hospital having operations ans I was medically dismissed by my old employer.

I managed to start a new job Jan 07 but then had to have another OP in Sep 07 and now another one sometime this month. (My consultant will not let me return to work as I can barely walk at the best of times)

I have got myself into a right mess with my finances over the last 3 years and I don't know the best way forward. I owe about £15k now. When I was working I just about managed but being off sick/unemployed so often and only receiving incapacity benefit, child tax credit, child benefit and housing benefit I am still short £800 per month. I was advised to declare myself BR but as I rent privately it is a huge risk.

I have written to all the companies I owe money to and have advised them of my situation but even with the reduced payments it's still such a stretch that I cant cope anymore.

My daughters father left us 6 years ago but i don't receive any support from him as I dont even know if he still in this country.

So basically my question is do I declare myself BR or not??



Thank You
xx

fermi

Just reposting what I wrote on the DFW board so that people here can see what has already been said.

Many tenancy agreements have a 'bankruptcy' clause in them but it often means very little. Most private landlords would rather have a reliable tenant (bankrupt or not) rather than take the risk of getting someone new/unknown in.

Plus, as far as I know, any clause in the tenancy doesn't really allow the landlord to take action any quicker than the normal notice/eviction proceedings that they could start against any tenant.

Some people have taken the plunge and had a chat with their landlord before BR, and the response of most seems to be that if you keep paying the rent they don't care.

If you do go BR then the Official Receiver will normally contact the landlord, but if you can show to the OR that your agreement is up to date they will sometimes agree not to.
Although the BR is advertised in a local/regional paper the advert is very small in the notices section, so it's unlikely (but not impossible) that the landlord would see that.

Plenty of other people on this board have gone BR while renting, so with a bit of luck they will tell you how they got on.

Richard_S

Hi kittycatty,

If you've been advised that bankruptcy is the best option for you then really the only thing stopping you is the question of your landlord and his/her response to your bankruptcy.

The overwhelming experience on here is that lalndlords would much rather have a bankrupt tennant who pays their rent on time than a solvent tennant who's got so much debt that they struggle to pay the rent.

Only you can answer that question, and I appreciate how difficult that must be for you. Is there anyway you can get some idea of the landlords likely reaction? Could you approach him with a hypothetical question along the lines of what would be his reaction if you were to declare bankruptcy?

Given that you don't appear to have any significant assets, and your income is mainly benefits and tax credits then bankruptcy in your situation would be relatively painless. Yo've no house at risk and it's extremely unlikely that you'd have to pay an IPA.

When you weigh up the prospect of getting rid of all your debts against the discomfort of approaching your landlord, I think you really should "take the bull by the horns" and ask him the question.

Of course, the other alternative is just to go ahead and declare bankruptcy and as fermi has said, if you have a rental agreement and you're up to date with the rent then there's very little chance of the landlord finding out.

Best regards

Richard

kittycatty

Hi
Thanks for the responses
If my LL wont let me stay, do you know what my options are?

Thanks

Richard_S

kittycatty wrote: »

Hi
Thanks for the responses
If my LL wont let me stay, do you know what my options are?

Thanks

Hi kitty,

He'll still have to give you two months notice; do you think that would be enough time to find another house? That is the worst case scenario though.

I think that's highly unlikely though; is there any clause in your tennancy agreement about bankruptcy? Even if there is, it doesn't mean that it would be enforced against you, and if there is no mention then it's even more unlikely that there'll be a problem.

Regards

Richard

kittycatty

Hi
Yes there is a clause in the agreement about BR. It states that the LL shall give written notice of intention to seek possession the property.

I think I might write to the LL as I cant face her direct.

Ta

Richard_S

kittycatty wrote: »

Hi
Yes there is a clause in the agreement about BR. It states that the LL shall give written notice of intention to seek possession the property.

I think I might write to the LL as I cant face her direct.

Ta

Hi kitty,

If you do decide to write to your LL, don't forget to emphasise that your bankruptcy actually leaves you in a much better financial position because you'll no longer be repaying debts.

Maybe a little sweet talk; with the extra money you'll have, you'd like to spend some of it on the garden, or maybe some decorating.

Try and emphasise that despite the shame you feel it will ensure that you're more financially secure than you were previously.

Richard

kittycatty

Hi sorry me again

Is it best to go BR myself or wait for the creditors to do it?

Thanks

Richard_S

kittycatty wrote: »

Hi sorry me again

Is it best to go BR myself or wait for the creditors to do it?

Thanks

Hi kitty,

Phew, an easy question.:D

It's extremely unlikely that your creditors would petition for your bankruptcy, unless you owe money to HMRC.:eek:

It would make much more sense to petition for your own bankruptcy. That may seem like an awful prospect, but don't forget, almost everybody who posts on this Forum has been bankrupt, or is in the process of declaring bankruptcy.

It doesn't make the world a different place; just a debt free place.:D

Richard

tigerfeet2006

If I was in your shoes I wouldn't tell the landlord. Talk to the OR tell him you are up to date with the rent. Make sure he has a copy of the the rental agrrement. Tell him you really don't want the landlord told. Say if you have to move you will have to find moving fees etc. and it could make life difficult. You never know he may say he won't.

If he says he will then write a letter to your landlord outlining what great tennants you are. Say the s/he will have spend money getting new tennents and they may not be so great. You pay on time etc. Now with NO debts to pay and a workable budget you will always be to afford the rent.......you get the general idea

Richard_S

Tigerfeet, you little rogue.:A I didn't realise you were a member of the "tell the truth, but don't always be telling the truth" club.:D

I've only just realised that you and I joined MSE at the same time; not long until our second anniversary darling.:o