I'm considering bankruptcy as I am around £45k in debt. I jointly rent a council property and we have rent arrears with the council.I understand that council tax arrears aren't wiped out in bankruptcy-but what abput rent arrears?
Please check the T&C's of your tenancy agreement before going BR. Perhaps call your rent dept. anonymously to make a general enquiry as to what they do when people go BR. Presumably you want to continue renting with the same landlord after petitioning BR? In which case perhaps they would argue you can't write off the arrears but would have to pay them back gradually and keep up with future payments. I know that mortgage arrears cannot be written off by BR IF the bankrupt stays in the property, only if he/she gives it up. It may be similar with rentals but by contacting your landlord you should be able to find out. Obviously you need to make sure that you can stay in the property if you go BR. If it is local authority or housing association I think you would be able to.
You cannot write off CTAX in the SAME CTAX year in which your BR falls but you can write off CTAX from any previous years.
I'm considering bankruptcy
Posted - 16 December 2008 : 20:15:26
