first of probably many questions

[newstartwanted]

Hi , I only discovered this very informative site a few days ago. After talking with Community legal services I have decided to go down the bankruptcy route.

I lost my business last year and my home was repossesed, prior to reposession I secured a tenancy through a letting agency. I have always paid the rent in full every month. I have only spoken to the landlady a couple of times on the phone when she had a problem with letting agents. My worry is a clause in the lease and wondering does the OR notify the landlady and should I inform her myself prior to going bankrupt?

The clause I'm worried about comes under the section:

FORFEITURE CLAUSE

d) if the tenant(s) being an individual shall become bankrupt or if the tenant shall enter into any composition with his creditors or suffer any distress of his goods in the property

Will I loose this house? My tenancy comes up for renewal in December . Any help would be much appreciated.

[Tawnyowl]

MMM,I recently went bankrupt and the OR asked for a copy of the tenancy agreement,and wrote to the landlord who wasnt bothered at all. However in your case with the clause i would double check. I would be surprised if you lost your tenancy. I will look round for more info, but just found this.----The OR does not always contact your landlord as a matter of course. If they do it is normally to establish that you are where you say you are and to confirm the rent payable. He won't contact them just to make your life awkward. If you have the rent/lease agreement and notification of rent and deposits payable then this will probably be enough to satisfy the OR.I have read a few peoples threads that the OR didnt contact the landlord.

Sounds hopeful.Tawnyowl.

[Tawnyowl]

Another bit of info---- As a landlord cannot throw tenants out without navigating a legal minefield, it is a scenario they are keen to avoid.

 

 

If you think your landlord may ask you to leave on discovering you are a bankrupt look carefully at you rent agreement. All tenants should have one of these agreements to protect both them and the landlord. If you are unsure about where you stand with your landlord it is a good idea to contact an organisation such as the Citizen’s Advice Bureau for help. They have access to solicitors and people who will be able to advise you on your personal circumstances. Normally a landlord cannot evict you if you are looking after the property and are making all you rent payments on time. Landlady,probably wont be the first time one of her tenants has gone bust.Maybe have a quiet word after taking advice.Your rent is upto date so hopefully wont cause any problems at all.Good luck,Tawnyowl.

[newstartwanted]

Thanks for that, I will contact the private renters assc. on Monday see what they have to say.

second question, When made bankrupt how long is it before your bank account is usable? I have the co op cash minder account I have wages tax credits and child benefit paid into. I also pay rent, insurance and other D.D. out of this account

[debtinfo]

Hi new start, The OR has the right to contact the landord in every case regardless of wether they do or not. The clause is in the tennancy agreement so it does not matter wether the OR contacts the lanlord or not. The clause is there and you will have been made bankrupt and so are in breach. Having said that landlords need tennents at the moment and they are hard to find, if you have always paid on time it is better that the information comes from you not the OR. You can point out that with no other debts you will be better able to make the rent as you always have done.

 

As regards the bank. It is a common misconseption that the OR will freeze the bank account. If it is your normal income then the OR will not freeze the account. It is the bank that freezes the account in some cases. The OR will then write to the bank asking that it be unfrozen. it is important to note that if the bank does not want you as a customer it does not have to. It must release the funds to you if you have no debts with the bank but can refuse to give you future use of the account

[Tawnyowl]

The OR in my case just said go in to the bank ,tell them you are bankrupt.I took the bankruptcy form and asked if i could keep the account open. They agreed and although the account is the basic one, better than none. I suppose if they hadnt kept it open it would have caused a lot of messing about changing everything. Glad they did. That was the Abbey.Tawnyowl

[newstartwanted]

The private renters assc.. put me in touch with city council legal team and were quite helpful. Land lady CAN ask me to leave but as I am not a problem tennant this is unlikely. She could decide not to renew the tenancy but this would also be costly, agents fees, lying empty etc.,

Also the OR could force a bankrupt out of a tenancy if the property is too expensive but seeing as my little mansion has a monthly rent of £500 this also seems unlikely.

 

I went to CAB on Thursday, I now have an appointment for next Friday for help filling in bankruptcy forms. Lovely friendly guy, in fact a past customer of mine. He says I can take as long as I need even if it takes 3 hours there'll be no rush and if I need to get further info I can just pop it in on the Monday. I really wish I hadn't kept my head in the sand so long.

 

I also contacted my Spanish bank to inform them of my situation. I asked why my property hadn't been repossesed yet? I haven't paid the morgage in over a year, He was really nice and asked me if refinancing would help!!!! I wish I was in the position to refinance. What a differance compared to GMAC and Kensington. Anyway he's sending out the forms so I can return keys. The Spanish have a differant system. They will send out a valuer and I will remain responsible until it is sold or I become bankrupt.

I spoke to some Spanish friends this week and they've just bought a lovely three bed apartment fully furnished with fab views for 60000 euros the English couple they bought it off were desperate to get back home and accepted an offer for a little over a third of what they paid for it two years ago. I'm so glad I never got to live in Spain! so many are really suffering over there

[newstartwanted]

Just a quick update. Sorted out some papers today, some still in their envelopes !! told you I've had my head in the sand, took over two hours.

I also received an up to date council tax bill, as I'm now on benefits I only have to pay £14-09 for 09/10 so I went straight up to pay it. I enquired about my over payment of housing benefit relating to December 08 which I'm paying back at £3-00 per week apparently I must still pay this back, which is fine, even if bankrupt. I have to say the lady was brill, told me her brother went bankrupt and said it was the best way forward for him she also said he was a little naughty before bankrupcy taking his credit card to the limit which caused his mother to fret but it went through no problem ! My boss also knows about my bankrutcy, I'm lucky he's a smashing bloke and very supportive. I hope I don't sound bullish and heading for a fall. I just want to convey that I wish I'd done something about my situation earlier. I do still worry that because I delayed doing anything that I may receive a bankrupcy order or undertaking, If I do I'll cross that bridge when I come to it !! I have to say everyone I've confessed to has been great, I'm also an alcoholic so I know I've not been the best person in the world to friends and family but one day at a time I'll get there. Blessing to all xxx