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  • FIRST POST
    • Barry1108
    • By Barry1108 15th Jan 20, 1:03 PM
    • 57Posts
    • 9Thanks
    Barry1108
    Going bankrupt as a landlord
    • #1
    • 15th Jan 20, 1:03 PM
    Going bankrupt as a landlord 15th Jan 20 at 1:03 PM
    Hi,
    After a very messy marriage breakup I have been left with no other option but to declare bankruptcy. My question is though - I live and rent in the South of England but I actually still own a house in the North. The house is worth around £80000 but has no equity and the tenant is actually a friend of mine.
    My main concern is that the OR will take the house and serve notice ( I assume) on my friend the tenant. If I applied for bankruptcy at the end of Feb, when would the notice be served on the tenant? Would it be likely to be a few months later?
    Thanks
    Barry
Page 1
    • MaximusArgento
    • By MaximusArgento 15th Jan 20, 1:32 PM
    • 1 Posts
    • 0 Thanks
    MaximusArgento
    • #2
    • 15th Jan 20, 1:32 PM
    • #2
    • 15th Jan 20, 1:32 PM
    Hi,
    After a very messy marriage breakup I have been left with no other option but to declare bankruptcy. My question is though - I live and rent in the South of England but I actually still own a house in the North. The house is worth around £80000 but has no equity and the tenant is actually a friend of mine.
    My main concern is that the OR will take the house and serve notice ( I assume) on my friend the tenant. If I applied for bankruptcy at the end of Feb, when would the notice be served on the tenant? Would it be likely to be a few months later?
    Thanks
    Barry
    Originally posted by Barry1108
    If the house has no equity then OR is not bothered but the burden of proof will be upon you. I would suggest you get all the proofs ready to hand over to OR that there is no equity in the house. Get valuation done by 2-3 estate agents and have your mortgage statement to hand to show no equity. OR's usually dont want to waste your or their time.

    The tenant will not be sent notice. They will be notified about your bankruptcy and will be told to pay the rent to OR from the the day you become bankrupt. As any estate in your name will then belong to OR. If you are paying mortgage from the rent proceeds than this will create a problem where the rent money will go to OR and you will still have to pay mortgage.

    Regards

    MA
    • Barry1108
    • By Barry1108 15th Jan 20, 2:09 PM
    • 57 Posts
    • 9 Thanks
    Barry1108
    • #3
    • 15th Jan 20, 2:09 PM
    • #3
    • 15th Jan 20, 2:09 PM
    If the house has no equity then OR is not bothered but the burden of proof will be upon you. I would suggest you get all the proofs ready to hand over to OR that there is no equity in the house. Get valuation done by 2-3 estate agents and have your mortgage statement to hand to show no equity. OR's usually dont want to waste your or their time.

    The tenant will not be sent notice. They will be notified about your bankruptcy and will be told to pay the rent to OR from the the day you become bankrupt. As any estate in your name will then belong to OR. If you are paying mortgage from the rent proceeds than this will create a problem where the rent money will go to OR and you will still have to pay mortgage.

    Regards

    MA
    Originally posted by MaximusArgento
    Thanks for the advice, what a horrible situation
    • DCFC79
    • By DCFC79 15th Jan 20, 6:19 PM
    • 35,691 Posts
    • 22,522 Thanks
    DCFC79
    • #4
    • 15th Jan 20, 6:19 PM
    • #4
    • 15th Jan 20, 6:19 PM
    Could you not sell the house and buy a property with whats left.
    • brettcta
    • By brettcta 15th Jan 20, 6:34 PM
    • 3,782 Posts
    • 3,635 Thanks
    brettcta
    • #5
    • 15th Jan 20, 6:34 PM
    • #5
    • 15th Jan 20, 6:34 PM
    Could you not sell the house and buy a property with whats left.
    Originally posted by DCFC79
    The house is worth around £80000 but has no equity
    Iím guessing thatís a no
    helpful tips
    it's spelt d-e-f-i-n-i-t-e-l-y
    there - 'in or at that place'
    their - 'owned by them'
    they're - 'they are'
    it's bought not brought (i just bought my chicken a suit from that new shop for £6.34)
    • silvercar
    • By silvercar 15th Jan 20, 8:10 PM
    • 39,820 Posts
    • 164,204 Thanks
    silvercar
    • #6
    • 15th Jan 20, 8:10 PM
    • #6
    • 15th Jan 20, 8:10 PM

    The tenant will not be sent notice. They will be notified about your bankruptcy and will be told to pay the rent to OR from the the day you become bankrupt. As any estate in your name will then belong to OR. If you are paying mortgage from the rent proceeds than this will create a problem where the rent money will go to OR and you will still have to pay mortgage.
    Originally posted by MaximusArgento
    Seems unfair that in business the OR would allow a bankrupt to carry on trading and pay the business expenses, but here when they may be a profit that the OR could take an IPA from, they don't allow the bankrupt to meet his expenses.
    • DCFC79
    • By DCFC79 15th Jan 20, 8:24 PM
    • 35,691 Posts
    • 22,522 Thanks
    DCFC79
    • #7
    • 15th Jan 20, 8:24 PM
    • #7
    • 15th Jan 20, 8:24 PM
    I’m guessing that’s a no
    Originally posted by brettcta

    Admittedly I'm a newbie regarding owning a property, I saw the no equity bit but didn't think "oh I wont post that as the poster said no equity".
    My bad, thanks for correcting me.
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