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| T O P I C R E V I E W |
| Sharon53 |
Posted - 12 September 2008 : 21:13:27
Hi
I am really starting to panic now, about 6 weeks ago my son and fiancee and baby moved to a new rented property. He was honest and told the letting agent that he had an IVA and bad credit, they said it wasn't a problem but insisted on a guarantor. They have previously rented with other agencies for the last two years and have always paid the rent promptly on time.
Now, however, when he told them that he will probably have to go BR in the near future, they are saying that he will likely be evicted. How can this be? Surely as long as the rent is paid it is no skin off their nose and that is the purpose of having a guarantor. How do all the people that go BR manage if this is the case, where do they live?
He really has no choice other than BR but is frightened to go ahead now in case it makes his family homeless. It really is an impossible situation and as his Mum I am desperately afraid of what is going to happen to them.
Providing for his family means he can't pay his debts and if he delays BR surely they must be getting bigger all the time with added interest, yet if he goes BR he could lose his home, what on earth is the answer?
Sharon |
| 9 L A T E S T R E P L I E S (Newest First) |
| John |
Posted - 14 September 2008 : 11:33:42
Hi Sharon
the IVA will not have failed until 3 payments have been missed. Up to that point it is unlikely that the IP will issue a Certificate of Termination, although it can be done with your son's agreement if the IP so wishes. Until the IVA has failed it is illegal for any of the creditors to hassle your son or worse, instruct bailiffs.
The more sceptical of us could presume that the creditors & the IP have it within their power to withhold the issue of the certificate indefinately and thus, after 3 missed payments, give the creditors time to instruct bailiffs before your son could declare bankruptcy which would avoid this.
I guess the best strategy then is for your son to "hassle" the IP commencing asap. He should call and also write to the particular IP supervising his IVA, explain he can no longer afford to pay and that he intends to file for his own bankruptcy which, in theory, will save the creditors the eventual cost of doing so themselves.
The "hassle" weapon should be used in reverse.
The creditors are quick enough to use the tactic before any formal arrangement is in place to stop them doing so. If I were he I would start asap rather than leave it until the 3 payments are missed.
He should also keep any correspondence from the IP regarding his willingness, or otherwise, to issue the certificate and log the content of any phone calls noting date, time, names etc.
Should it be needed your son may be able to use this information at Court if he wanted to file for BR but was being prevented from doing so.
The judge would likely take a dim view of any IP deliberately standing in the way of what is the right of us all, to declare bankruptcy, so as to prolong the "hassle" period.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
| Sharon53 |
Posted - 13 September 2008 : 19:54:52
Hi bankruptC
Phew! That's a relief as I expect I will be paying. The post I read that on must have been for a couple.
Sharon |
| BankruptC |
Posted - 13 September 2008 : 19:16:42
Hi Sharon,
I can't answer about the CCJ's etc, but the fees for BR in total are £495 per person.
I really hope it gets sorted for you all.
C. x |
| Sharon53 |
Posted - 13 September 2008 : 19:12:03
Hi John & grantspants
Thanks for your advice, I will pass it on to my son tomorrow. From what I understand, when he told the lady in the lettings dept. about his future BR she initially said that she couldn't see a problem but then she decided to phone their solicitor and it was he who threw up the doubts and possibility of eviction.
Another couple of questions while I'm here - I have just read on another post that it can take up to 5 months to get a certificate of failure for an IVA, his is also Blair Endersby. If it takes that long will he not get CCJ's or bailiffs in the meantime?
I have also read that the cost of BR is £1000, is this correct?
Sharon |
| John |
Posted - 13 September 2008 : 10:03:17
Hi all
I'm wondering just how experienced the contact at the letting agent's is. In a standard tenancy agreement there would be a clause regarding the declaration of bankruptcy by the tenant.
This is to safeguard the landlord. If this clause is not included it can take a landlord 2 or 3 months to evict a tenant that has not kept up the rental payments. By adding the bankruptcy clause this enables the landlord to evict the non rental paying bankrupt much quicker, within a month, thus he will not lose so much rental revenue.
In my limited experience I have yet to come across a landlord that exercised his rights in respect of this clause, if, the tenant was up to date with the rental payments. Moreover, in this case the landlord can recover any monies if the tenant was in default by way of the guarantor.
Above everything a landlord wants 2 things, a regular income via the rental, and good tenants that look after the property.
Any landlord that evicted a newly declared bankrupt with a proven track record on both counts would have to be a complete fool.
Therefore an obvious conclusion, in this case, could be that the letting agent knows that this particular landlord is indeed, a complete fool.Either that or the letting agent is.
Sharon, if I were your son, I would look to speak to a senior member of the letting team in private and put the whole guarantor, previous good history scenario to him and get his thoughts as he will probably know the landlord and will have more experience of these things
Good Luck.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
| grantspants |
Posted - 13 September 2008 : 09:05:31
Hopefully it wouldn't be automatic that he would be evicted when the landlord finds out about his BR, maybe he could be talked round, especially if he has family to act as guarantors. Point out that he is in a much better position to make the payments and if he should run into problems then they can exercise their rights to evict him.
If push comes to shove and he must leave the property, then the local authority will re-house them once he has an eviction notice.
Thats my understanding of it. So if I were him, I'd sort out the financial side of things first.
Try not to worry, just take things step-by-step and stick together and they'll be fine  |
| BankruptC |
Posted - 12 September 2008 : 21:50:36
Hi again Sharon,
I'm not sure how long it would take for the creditors to chase him, but he won't be able to hide from them forever unfortunately. I really feel for you in all this as you seem to be doing all the worrying for your son.
I can't really offer much more advice but we're always here.
Hugs,
C. x |
| Sharon53 |
Posted - 12 September 2008 : 21:42:35
Hi C.G.
Yes it really is a worry and as I said, I can't understand why there should be a problem as long as they are getting their rent every month. They obviously don't want to move again as they have moved near to their jobs to save petrol and have a 6 month tenancy to start with, but I suppose if they were evicted that wouldn't count.
I am frightened that the longer he puts off BR he will get CCJ's and the bailiffs knocking at the door. As he has just moved they don't know his whereabouts at the moment, but how long will it take for them to trace him?
I suffer from an anxiety disorder which makes me worry out of all proportion, so although it is his problem really, I am the one having the sleepless nights and distress,he never seems to show any emotion over it all - it just seems never ending!
Sharon |
| BankruptC |
Posted - 12 September 2008 : 21:25:31
Hi Sharon,
What a worry for you. We've just gone BR and are in rented and luckily for us the lettigs agency have said it's very unlikely our landlord will evict us if/when he's informed of our BR. We can't be certain though and could find ourselves in a similar situation (although I'm not allowing myself to think about that yet!). I'm surprised too that they would want to evict anyone even before they have chance to miss a payment. I've said before, if I was a landlord, I'd be happy to let a BR rent my house, cos at least I know all the money they have is their own, and not having to go to pay loads of debts each month! How many people with 'good' credit are in this position?!
Can your son look for somewhere to rent which is BR friendly? If he phoes a few lettings agents, especially the smaller ones, he might find they're willing to take him on. We phoned our agency anonymously before we moved in and they said it would be ok. If he can't find one, maybe he could look at private rentals, as they usually don't bother with credit checks.
It's hard for you, I know, but I really do think things will work out in the end.
Keep posting and let us know how things go. :-)
CG. x |
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