Director and Rented property. Urgent help needed.

Deadingit

I dont think my first post went through and if it did I apologise for reposting.

To sum up I owe MNBA (10k) Nat west CC (8k) Monumant (6k) Egg CC (5k)
GE Finace for sofa I bought for my sister at Christmas (£1,200) Next Store Card (£900), HFC around (£500)

I have been sleeping on my sisters sofa for 4 years, because I earn around 2k per month paid in dividends and this covers minimum payments maintenance for my children living expenses etc.

I was made redundant after splitting with my ex 4 years ago but used the money to keep up minimum payments until I found work.

My colleagyue and I set up a limited publishing company and we are both co-directors and i realise that I will have to step down as director. (sorry this is so long winded).

I have found a property to rent though Beresfords and it will cost £850 per month in rent. This is normal for the area. After rent council tax living expenses etc. I will not have enogh money to pay creditors and will have to petition for Banckruptcy. I have taken advice from CCCS who said that I should find a property first the patition for bankcruptcy as I would not have enough money to keep up an IVA.

The problem I have is that in the tenancy agreement there is a clause un 'Forfeiture', which states that 'If the tenant becomes bankrupt or assigns his estate or executes any Deed of Arrangement for the benifit of his creditors.'

Does this mean that if I become bankrupt, I can be evicted by the landlord. This is my firdt rental and due to the problems my staying at my sisters is causing, I am at a dead end.

Also my son has agreed to act as guarantor and naturally I am now extremely nervous because if they evict me through bankruptsy, this will mean that he is liable for the 12 month rental and obviously I do not want to put his neck on the line.

I am due to sign contracts and pick up keys on Tuesday. Do I pull out? This will mean that I have to stay where I am and keep paying minmum paymenst on my CCs forever.

Please can anyone help because as some of you have probably experienced, I am now having sleeless nights as to what to do.

Thanks for taking the time to read this and in advance for your help.

lookingforhelp_2

Hi,
Sorry i can't answer your questions
Just wanted to wish you luck for the future.
Hope everything turns out ok for you.
Sarah

Deadingit

Thanks Sarah I hope someone can help soon.

Peter

molly73

Hi Deadingit

My husband went BR and the OR wrote to the landlord for comfirmation of rent she was rather worried when she phone re getting her money, fortunately my husband had already set up a job and I assured her that it was just because of the business. Shes ok with this. Maybe we are lucky to have a nice landlord. I would have thought this would be the case as long as you have the funds to pay and can assure the landlord of this, afterall the property could be empty again for a while until another tennant is found. Good luck

JCS1

Most private landlord are fine, they are often more concerned about getting the rent paid on time each month and having a good tenant.

I have not heard of anyone who has been evicted (and I hope no one posts to prove me wrong!)

You could always try either a anonymous (sp?) phone call to the letting agent, or an off the record conversation with them if you want to make sure.

Deadingit

Thank you for your help.

I am also worried though because if the Landlord did evict, the guarantor would be liable for the rental for the rest of the contract period which is 12 months.

Difficullt decision to make I know.

Deadingit

I will have a rental agreement from the letting agent. Will the OR still contact the landlord?

Should I resign as director before I go bankcrupt or when the OR tells me I have to?

I appreciate any help you can offer.

Peter

mpg

Surely if the landlord evicts Its he who has cancelled the contract and your son shouldnt be liable

Deadingit

Thanks mpg. Can anyone advise on the directorship issue please? As to when I should resign as director?

Thanks

Peter

Deadingit

sorry for so many questions, but as I am a director, I own half of the company. We have no assets and recorded a loss of just over £500 last year. Will the OR be interested in the company?

debtee_2

Hi deadingit

I had a tenancy agreement with a private landord when I went BR. Like you I was worried the OR would inform the LL and what their reaction would be. However because I was not in arrears with the rent and I provided a copy of my rental agreement showing there was no bankruptcy clause, the OR agreed there was no need to inform my LL.

So suggest you check the tenancy agreement for a bankruptcy clause before you sign it, make sure you don't get behind in the rent, then you have a good case to make to the OR not to inform your LL.

Good luck:)