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| T O P I C R E V I E W |
| b_n |
Posted - 17 April 2009 : 09:33:04
I'm filing for bankruptcy in the next few weeks. I live in a rented flat and found a clause in my tenancy agreement that allows the landlord the right to terminate my tenancy if I go bankrupt. To make matters worse, I'll also be made redundant in the next few weeks. I've been a tenant in this property for almost two years and have always paid my rent on time.
Should I discuss all this with the letting agents before I go bankrupt? |
| 6 L A T E S T R E P L I E S (Newest First) |
| John |
Posted - 19 April 2009 : 04:34:25
Hi
I do understand your logic in that, by definition, a means tested loan of any description suggests a basic need for the funds. However the vehicle analogy doesn't stand up, in my opinion, as a vehicle is allowed in order to generate income at the time of bankruptcy which of course could very well enable the bankrupt to contribute to an IPA so the benefits, potentially, are two fold. Whereas your loan will, possibly, enable you through your studies to earn more at sometime in the future which can only be of benefit to you.
It's a tricky one and one which I have not come across before. Technically I think the £2K could be classed as an asset only on the basis that it is not repayable but logic says it should not be claimed.
I'm sorry I can't give you a definitive answer.
As you intend to apply for the student loans post bankruptcy you will of course be able to ask the OR directly before any application for a student loan is made.
Good Luck.
John White
England Jackman & Spacey |
| b_n |
Posted - 18 April 2009 : 22:09:34
Hi John,
Yes, I phoned Student Finance England (as they are now called) and informed them that I will be an undischarged BR at time of applying. They said that they would not take my bankruptcy into consideration when they review my application. I also told them that I would still be under legal obligation to inform them that I was an undischarged BR and they said that was fine.
Basically I'll be applying for a repayable maintenance loan (£6,000 per year) and a means tested non-repayable grant (about £2,000), so around £8,000 in total. This is to help me with general living costs while studying. They pay it into my account at the beginning of each term (so three payments during the year).
As a full-time student I won't qualify for any benefits, so this will be all I'll have to live on for the year.
The advice I've had on here (and another forum) is that the OR would not touch the loan, but nobody could comment on the non-repayable grant. My fear is that the OR would view this as an asset and claim it, leaving me with far less than the £8,000 to live on for the year.
Even if the OR did view the grant as an asset, surely I'd be allowed to keep it on the grounds that it is needed for my day to day living expenses. In much the same way that a car-owning BR would be allowed to keep his/her car (which is an asset) if they needed it to earn a living with.
What do you think?
Sorry, didn't mean to write a novel ... |
| John |
Posted - 18 April 2009 : 20:15:26
Hi
do forgive me but I haven't been a student for
??years so I'm not sure of the procedure.
Are you confident that you will qualify for the non repayable grant as a bankrupt?
John White
England Jackman & Spacey |
| b_n |
Posted - 18 April 2009 : 17:58:50
Thanks gettingoutofdebt/John,
I've just told my letting agents and they were very understanding. They said they'd inform the landlord and felt sure that my arrangement with them will not change ... so fingers crossed
John,
I have a question for you abbout student grants ...
After I go bankrupt I'm hoping to start studying again as a full-time student in September. I'll be applying for student loans from the SLC as well as for a means tested non-repayable grant (worth about £2,000) also from the SLC.
As a student I won't be able to receive benefits so I'll be relying totally on the student loan and the grant to live on for the year.
I know the loans probably won't be touched by the OR (thanks gettingoutofdebt for your answer on that) but what about the non-repayable grant? Will this be deemed an asset and then claimable by the OR?
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| John |
Posted - 18 April 2009 : 16:39:10
Hi
yes that's right.
Most tenancy agreements have a bankruptcy clause but in my experience the landlord won't care as long as the rent is paid as it has been for the last 2 years.
Likewise, if you claim your Housing Benefit as soon as you are able these funds are paid directly to you. Therefore the rent can still be paid and the landlord will be kept happy.
Both the landlord and the letting agent know you and you have a history of good payment and good tenancy.
Usually the bankruptcy clause and the frequent "no benefit claimants" is to safeguard the landlord.
Good tenants are not easy to find so be up front, continue to make your rental payments and I'm sure everything will be fine.
John White
England Jackman & Spacey |
| gettingoutofdebt |
Posted - 17 April 2009 : 14:28:35
I would say that it is best to let the letting agents know as the OR will sometimes inform the landlord of your bankruptcy. You could try and reassure the agency that you will still be able to pay the rent with benefits, etc. and that you are actively looking for new employment.
One of the experts may also be able to provide some advice on this issue based on their experience. |
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