Tenant entering bankruptcy. No rent arrears

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    Tenant entering bankruptcy. No rent arrears

    Hello,

    I am unsure about this current situation. One of my tenants in my smaller property has written to me informing me she is being made bankrupt. I do not know if this is by choice or enforced. She is a single mother of 2 children working part time topped up by universal credit. Rent is up to date and has never been late. Tenant been in residence 3 years current periodic tenancy after 12 months AST at the start. I have not been informed of any financial difficulty although it is likely something is going on.

    Do i need to do anything? Will i be contacted by the Official receiver? Do they evict, am i expected to evict or does she stay put? I have nothing written in the tenancy agreement about bankruptcy.

    Thanks

    #2
    It seems to me as though she has correctly prioritised debts and no action is needed unless she actually defaults on payment.

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      #3
      What does she say about paying her portion of the rent in future?

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        #4
        I suspect all the involvement you will have is the Official Receiver contacting you to confirm the amount of the rent each month.

        If the tenant can pay the rent now, there will be no issues once they go BK. Rent is deducted in full along with all other expenses prior to any payments made to the OR.

        I would suggest that the tenant is now even less likely to go into arrears following bankruptcy.

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          #5
          Originally posted by Maikkia View Post
          Do they evict, am i expected to evict or does she stay put?
          If she continues to pay rent (which she probably will, given that it sounds like she is correctly distinguishing between priority and non-priority debts), I suggest that the best outcome for everyone is that she stays put.

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