Renting to a bankrupt.

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    Renting to a bankrupt.

    Hi everyone. I've just signed up here.

    Now...Would you rent to a bankrupt ?? If not,why not ?? Or would you impose stricter terms ??

    #2
    welcome Jayen4

    I have rented to a person that has been bankrupt yes.
    No problems to date, most important thing is to fully reference them and definitely take a fully referenced guarantor (householder to boot)

    Don't leave any stone unturned!
    Ambition is Critical

    I don't profess to be a knowledge in all areas, my advice is based on life experience.

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      #3
      Thanks for the quick reply...

      Might be a problem there.... I know this person doesn't have a guarantor. Single mature person,no family members etc. What to do ?

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        #4
        Hi Jayen4,

        I may be opening up a whole can of worms that I shouldnt first thing in the morning, but why not. Bankrupt - it doesnt mean best avoided, it all depends upon the individuals situation. Now I would always say that a bankrupt may have had a business that failed and he went bankrupt, may not of entirely been his fault. Then you have the other hand of an individual who cannont manage their finances and has taken the easy way out. At this point in time you can be a discharged bankrupt after 7months. If he is still undischarged I would obtain a copy of his bankruptcy report and that will give you a true insight.

        I would always say when it comes to tenants, have a very open mind and also look at all options, with regards to guarantor situation, this is a problem as even if the guarantor accepted that their is a debt owed for rent arrears. All they have to do if fill in an income expenditure form and make an offer for payment and their is very little you can do. The courts will not hear it if you reject an offer of payment regardless of the amount that they pay.

        This is very much a situation where instinct has to be used together with getting the evidence to confirm what he is saying to you. The fact that he has told you that he is bankrupt is a plus point in his favour, lots of tenants wouldnt have told you.

        Hope you make the decision that best suits you, remember there is no right or wrong here, only could be wrong if you have problems and could be right if he turns out to be a model tenant.

        Jax

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          #5
          Hmmm...

          Thanks for that,Jax. Nothings ever 'guaranteed' as it were,is it ??
          Lots of good advice there....I shall ponder.

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            #6
            I would say no!
            The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

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              #7
              Hi Paul,

              Just out of curiosity why would you say no? Not meaning to be putting you on the spot. Would you not look at the individual circumstances?

              Jax

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                #8
                Research

                Many people who moved rather late into OUR line of business are going bankrupt as we speak.
                They are not lepers any more than you are!
                Each individual has a story, usually related to an unfortunate business venture and usually easy to verify.
                Often these people are the doer's, the go-getter's the small independent business folk who have traditionally formed the backbone of the UK economy, not all of them, but, many.
                Take appropriate care, do your very best and most through research but please don't just write them off.

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                  #9
                  A bankrupt will have had non-secured debts written off in bankruptcy and so should be able to afford to pay his rent, whereas a struggling debt-ridden non-bankrupt may be a greater risk.

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                    #10
                    Bankrupts reliability

                    Does anyone on the forum have any statistics for the fiscal reliability of discharged/undischarged bankrupts.
                    I may have dreamed it but I seem to recall that it's a case of once bitten etc That is to say that for the purposes of business banking anyway, a discharged bankrupt has a statistically lower risk of future failure than the rest of us?

                    Comment

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