Landlords Beware - DRO Day: 9 April 2009

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Landlords Beware - DRO Day: 9 April 2009

    New legislation comes into force on 9 April 2009, which is not getting much publicity, and could adversely affect landlords.

    Debt Relief Orders are a cheap form of bankruptcy, which only costs £90. The debtor should have less than £15,000 in debts and no more than £300 in assets (but can have more 'outside' the home, e.g. a car valued at up to £1,000). Also, 'household' items, not personally owned (such as the latest plasma screen tv and hi-fi system) needn't be included as assets if they are 'family' purchases.

    All debt enforcement has to stop once the order is lodged, and after a year the debts get written off. The debtor can't have any credit at all then for six years. Any creditor can object if, for example, they think that the information supplied by the debtor is false. However, it will be evidence based, and the creditor will need to provide proof of the difference.

    All the debtor does is fill out a form listing their debts and assets, signs a declaration of truth and sends in their £90. If they haven't got £90 in one go, they can pay by instalments and although the procedure has not been published yet, I have been told that the DRO still gets lodged when paying by instalments, but the debts will not be written off after the year if the full payment has not been made.

    One of my contacts say that Citizens Advice have 40,000 claims that are waiting for this to become law.

    I have been told that rent arrears and damages can be included in the debt schedule.

    The scheme is meant to be run at no cost to public funds and all DRO's have to be lodged via an a single appointed intermediary 'competent authority' The Insolvency Service have surprisingly appointed Bains and Ernst as the sole intermediary to the astonishment, as I hear on the grapevine, of the Office of Fair Trading. It appears that the OFT are surprised due to regular complaints from consumers who have got involved in debt management plans with this firm and allege that they have been given wrong advice or have faced excessive charges.
    On some things I am very knowledgeable, on other things I am stupid. Trouble is, sometimes I discover that the former is the latter or vice versa, and I don't know this until later - maybe even much later. Because of the number of posts I have done, I am now a Senior Member. However, read anything I write with the above in mind.

  • #2
    Originally posted by Esio Trot View Post
    I have been told that rent arrears and damages can be included in the debt schedule.
    Correct... the only debt excluded as far as I know are similar to bankruptcy:

    secured debts
    court fines and child support and maintenance payments
    student loans
    debts incurred outside England and Wales.
    Benefit over payments obtained by fraud.
    Borat hope his post are some help. Borat thinks people should double check anything someone who refers to himself in third person says...

    Comment


    • #3
      It sounds alarming, although it must be seen in perspective.

      First, on a pragmatic level, how successful is court action in enforcing judgements against tenants who owe a few thousand pounds? If they have the money, the chances are they will have paid it; most ccjs are against the impecunious. So it could be argued that it is academic whether they make themselves bankrupt or not since the LL is unlikely to see the money either way.

      Second, to make oneself bankrupt, even if it only costs £90, is not exactly a 'get out of jail free' card, (although some will inevitably see it as such). Those who exercise this option would have to be extremely dim or desperate, since they will not be allowed any credit of any kind for years and they will certainly struggle to secure any other accommodation after you throw them out - nobody is going to let a property to a bankrupt, are they?

      I think, from a LLs point of view, the only answer is absolute rigour in referencing Ts before signing them up and ensuring a referenced guarantor is in place for all no/low income Ts.
      'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

      Comment


      • #4
        nobody is going to let a property to a bankrupt, are they?

        What a ridiculous statement

        Maybe people have been made redundant & fallen on hard times maybe ill health,divorce etc... has caused them to take this route

        Who do you think rents properties ?
        Hmm lets see mostly peolpe who can't afford to buy or have no deposit to buy one ! for whatever reason

        If someone is bankrupt they are not servicing debt so have more disposable income to pay for example rent

        Who are you to judge that a bankrupt is not worthy of a roof over their head

        Comment


        • #5
          Those who exercise this option would have to be extremely dim or desperate, since they will not be allowed any credit of any kind for years

          So if your not credit worthy you just not worthy?

          Comment


          • #6
            referencing Ts before signing them up and ensuring a referenced guarantor is in place for all no/low income Ts.

            I know a newly discharged bankrupt who earns 41k + bonus + car allowance

            Bankrupt does not mean no/low income

            Comment


            • #7
              Final Rant

              Many low/no income families live n social housing they couldn't afford private rents


              Sorry do want to offend but the post was ill thought through

              Comment


              • #8
                Originally posted by house275 View Post
                What a ridiculous statement

                Maybe people have been made redundant & fallen on hard times maybe ill health,divorce etc... has caused them to take this route

                Who do you think rents properties ?
                Hmm lets see mostly peolpe who can't afford to buy or have no deposit to buy one ! for whatever reason

                If someone is bankrupt they are not servicing debt so have more disposable income to pay for example rent

                Who are you to judge that a bankrupt is not worthy of a roof over their head
                Excuse me, but please don't jump to conclusions. I pass no judgement as to the moral standing (or otherwise) of people who declare themselves bankrupt. My statement about their difficulty in obtaining private rented accommodation was based simply on the fact that one of the first conditions required by a tenant referencing check is that there shoudl be no unspent ccjs or bankruptcy orders against a prospective tenant's name.

                I appreciate that there are various reasons why people may be desperate enough to take this route, but clearly it is not a quick fix; it has consequences, one of which is extreme difficulty in finding decent rented accommodation. That is all I said.
                'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                Comment


                • #9
                  I was merely quoting your words

                  We shall have to agree to disagree on that one
                  I help to advise people in such positions
                  Many people go onto rent good properties at high rents
                  If they are honest with the letting agents & landlords from the start many accept them
                  The asking of additional deposit or 3 - 6 months rent in advance is common and in my view discrimination

                  Comment


                  • #10
                    Originally posted by house275 View Post
                    Maybe people have been made redundant & fallen on hard times maybe ill health,divorce etc... has caused them to take this route
                    Where did I say otherwise? I used the word 'desperate' and I stand by it. It is - or should be - a desperate measure, in extreme circumstances, would you not agree?

                    Originally posted by house275 View Post
                    Who do you think rents properties ?
                    Hmm lets see mostly peolpe who can't afford to buy or have no deposit to buy one ! for whatever reason
                    Have I disputed this?


                    Originally posted by house275 View Post
                    If someone is bankrupt they are not servicing debt so have more disposable income to pay for example rent
                    Possibly, possibly not. It depends why they declared themselves bankrupt in the first place. In some cases; please note I have not said 'all') it will have been because they cannot manage their personal finances - addiction to spending money for whatever reason may mean that money just evaporates and they do not have enough for the essentials.

                    Originally posted by house275 View Post
                    Who are you to judge that a bankrupt is not worthy of a roof over their head
                    I have not said that and I would be interested to know why you think I have.
                    'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                    Comment


                    • #11
                      Originally posted by house275 View Post
                      I know a newly discharged bankrupt who earns 41k + bonus + car allowance

                      Bankrupt does not mean no/low income
                      Nah bankrupt is for a lot of people a way of bumping bills. If your mate earns 41k now maybe he should go and pay the people he bumped before.

                      I think the whole thing is a joke. I would not rent to an ex bankrupt
                      What i write is what i think....If you need solid info PAY A SOLICITOR!!

                      Comment


                      • #12
                        Mind The Gap I stand by every word I posted not just the ones I select to quote later
                        I do not wish to fall out with someone who has previously offered me help here
                        The original post in my personal opinion was poorly phrased
                        I shall not get into a tit for tat over it I obviously have strong views on this matter and do not wish to force them on others
                        I withdraw


                        Starlettings so you wouldn't have rented to any of these people then ?




                        Rembrandt
                        Wolfgang Amadeus Mozart
                        Thomas Jefferson
                        Walt Disney
                        Henry John Heinz
                        James Abbot McNeil Whistler
                        Abraham Lincoln
                        Mark Twain
                        Oscar Wilde
                        Henry Ford - Founder Ford Motors
                        William Fox - co-founder of 20th Century Fox
                        Charles Goodyear - inventor and tyre manufacturer
                        Mickey Rooney - actor
                        Lionel Bart - British composer
                        Harry Saltzman - film producer of James Bond
                        Isaac Hayes – Songwriter, composer, singer Soul Ltd.
                        Larry King - talk-show host
                        Tom Petty - rock star
                        Cyndi Lauper - rock star
                        Meat Loaf - rock star
                        Mick Fleetwood - rock star
                        Marvin Gaye - singer
                        Andy Gibb - rock star
                        Jerry Lee Lewis - Rock n’ Roll star
                        Tammy Wynette - country music star
                        Willie Nelson - rock star
                        Kim Basinger - actress
                        Gary Coleman - star of "Diff'rent Strokes"
                        Burt Reynolds - actor
                        Debbie Reynolds - actress
                        MC Hammer - musician
                        Natalie Cole - singer
                        Toni Braxton - rock star
                        Chaka Kahn - rock star
                        Mike Tyson - boxer
                        Natalie Cole - singer
                        Don Johnson - actor-producer
                        Sir Alan Sugar
                        Sir Richard Branson
                        Michael Heseltine


                        The commonest causes of bankruptcy are sudden ill health ,redundancy,divorce
                        All traumatic events where you often have little or no control,Irresponsible,sensational reporting does not help

                        Irresponsible lending by banks & credit card companies & financial ignorance are also a factor but do not represent the majority

                        What about all those buy to let landlords who are in negative equity and can't renew on mortgages ?


                        My client does pay into a 3 year IPA & his creditors will receive alot of there money back over this period
                        Ignorance of the mechanics of bankruptcy is also a problem people make assumptions that are not based in fact

                        Comment


                        • #13
                          Borat thinks both sides have valid points. Borat has worked woth both sides and realises that there are valid points made by both but he cannot understand why everything has to be generalised and put one group of people into one box..... Borat is proud he personally does not fit into any box.

                          Borat thinks that everyone that goes bankrupt cannot pay their debts or the bankruptcy would not happen. Borat also believes that people do have to take some responsibility for their own actions.
                          Borat hope his post are some help. Borat thinks people should double check anything someone who refers to himself in third person says...

                          Comment


                          • #14
                            P.S If Borat had a house to rent out he would try avoid renting to Mike Tyson because he likes his ears. Also he would be nervous attempting to collect arrears coz Mike appears to have anger issues.....
                            Borat hope his post are some help. Borat thinks people should double check anything someone who refers to himself in third person says...

                            Comment


                            • #15
                              Originally posted by house275 View Post
                              Starlettings so you wouldn't have rented to any of these people then ?
                              Rock stars? or Mike Tyson? Damned right I wouldn't...

                              Comment

                              Latest Activity

                              Collapse

                              Working...
                              X