Bankruptcy proceedings in relation to alleged rent arrears or damages

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  • Bankruptcy proceedings in relation to alleged rent arrears or damages

    Have any landlords served, or considered serving Statutory Demands under section 268(1))a) of the Insolvency Act 1986 for tenants owing more than £750 in rent or for damages?

    Have any tenants reading this experience bankruptcy proceedings?

    Here's more information:-

    Free forms from the Insolvency Service

    For England and Wales these are

    Form 6.1 Statutory Demand under section 268(1)(a) of the Insolvency Act 1986

    Form 6.11 Affidavit of Personal Service of Statutory Demand

    Superb explanation as to how the statutory demand procedure works

    Would these procedures be helpful in keeping tracks on the small number of tenants who run up large debts with a sequence of different landlords. Could Insolvency action mean that it will not be so easy to and fly by night and evade County Court small claim actions?
    Vic - wicked landlord
    Any advice or suggestions given in my posts are intended for guidance only and not a substitute for completing full searches on this forum, having regard to the advice of others, or seeking appropriate professional opinion.
    Without Plain English Codes of Practice and easy to complete Prescribed Forms the current law is too complex and is thus neither fair to good tenants nor good landlords.

  • #2
    I serve SD's as a matter of course for any debt above £750 - usually it concentrates the mind of the debtor where they have tangible assets.

    Only once have I had a SD set aside by a debtor who contested the amount due - he was successful in his set aside application only for me to serve a default summons next day which he decided not to contest - judgment in default and a further SD later and I recovered everything.


    • #3
      I have a tenant who now owes 3 months rent totalling £1340 and counting. The section 8 has been served and now waiting for a court date which will be in about 8 weeks times i am told (another two months rent of £470pcm). Will this form speed the process up in anyway, especially as she ignores every letter, every phonecall and doesnt answer the door - B*&@h!!
      Also on that note I have considered Debt collectors - do you have nay views or advice on this.
      Sorry to have gone off on a tangent on this one but i am a) desperate and b) frustrated by how long it takes to get my property back and many hundreds of £££s.
      thanks in advance


      • #4
        having been down exactly the same road it appears nothing can speed it up. I know exactly how you feel. When you have the hearing the tenant will be given 14 days to go (if you win) and if they don't you have to go back to the court to get baliffs arranged. We lost 4 months rent but were fortunate as they left on the day we went to court for the section 8 hearing. Have you checked if they are on Housing Benefit? My tenants were working when they went in but later started to claim without my knowledge. I checked with the council and did at least get something from them once the tenants were 8 weeks in arrears - I was able to have the HB paid directly to me.
        Unshackled by the chains of idle vanity, A modest manatee, that's me


        • #5
          no they are not on HB to my knowledge. Annoyingly she is getting a divorce settlement this month of circa £50k, so the funds are there. My honest belief being that she will leave it to the very last minute (even dispute it in court) and then do a runner. Second time this year this has happened, previously the court ordered the tenant to pay court fees (i did an accelerated order), but she has buggered off with no way of finding her either!Does anyone have experience of a debt collection agency?
          and is it worth doing the forms mentioned above? and can i do these forms in conjunction with court action in progress?


          • #6
            come to think about it, how do you check if someone is on housing benefit?


            • #7
              If you referenced her properly you will have all the information you need, even if she does a runner, this includes bank details, NI number, copy of identification, job details and next of kin.


              • #8
                Wayne1 - RIng the council and tell them the name of the tenant and the property. You will get the usual " we can't tell you anything". Then you have to hit them with the fact that if the tenant is claiming HB they are now over 8 weeks in arrears and that you have commenced court proceedings against them under section 8. Point out that under the law any HB being paid has to be paid to you. At that point they should tell you or at least agree to get back to you. They will then put a stop on tenants payments until they investigate and hopefully about 4 weeks later the HB payments begin coming to you.
                Unshackled by the chains of idle vanity, A modest manatee, that's me


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