Found out tenant has incurred a bankruptcy notice?

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    Found out tenant has incurred a bankruptcy notice?

    Please help, as a new landlord (8 months) im not sure on what action to take. My tenant is full time employed with a family, has never defaulted on payment to me or had any issues when inspecting the property, model tenant shall we say. I have recently been informed that he has been listed as bankrupt whilst in the property and has 4 months left on their tenancy. There are a few questions that i have to ease my mind if you could help?

    1) Will his bankruptcy affect the credit rating of myself?

    2) Will the property be listed as brankrupt or black listed?

    3) What happens if he fails to pay his debts and bayliffs are called and takes my property? ( free standing cooker etc)

    Any help would be very much appreciated thanks.

    #2
    Originally posted by legs View Post
    Please help, as a new landlord (8 months) im not sure on what action to take. My tenant is full time employed with a family, has never defaulted on payment to me or had any issues when inspecting the property, model tenant shall we say. I have recently been informed that he has been listed as bankrupt whilst in the property and has 4 months left on their tenancy. There are a few questions that i have to ease my mind if you could help?

    1) Will his bankruptcy affect the credit rating of myself? no

    2) Will the property be listed as brankrupt or black listed? no

    3) What happens if he fails to pay his debts and bayliffs are called and takes my property? ( free standing cooker etc) they cant take anything that does not belong to the tenant and also I believe they cannot take essentials such a cooker

    Any help would be very much appreciated thanks.
    To be honest he is probably better off now financially than he was before.

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      #3
      Originally posted by Poppy35 View Post
      To be honest he is probably better off now financially than he was before.
      And surely once you're bankrupt that means the debt effectively vanishes, so bailiffs can't take anything, let alone the landord's property?

      Interested to know whether the individual was vetted before the tenancy started, and how long ago that was? There's likely (but not definitely) to have been plenty of evidence of debt before things got as far as bankruptcy.

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        #4
        I have a tenant who declared before I accepted her that she had one of those independent financial arrangements. Her partner's finances were squeaky clean. Credit checks confirmed what had been declared thus I thought twice and then accepted them. Six or so months later, said tenant telephoned me in tears to say that she couldn't cope with her IFA and would have to go bankrupt. She did. To make matters worse, she was then made redundant. At no time has her rent payment ever not been in full or delayed. For cash flow purposes she has now asked for her rent payment to be delayed by a week, and paid a week's rent to allow for this. She is proving an excellent tenant to whom I am happy to continue to rent this property.

        P.P.
        Any information given in this post is based on my personal experience as a landlord, what I have learned from this and other boards and elsewhere. It is not to be relied on. Definitive advice is only available from a Solicitor or other appropriately qualified person.

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          #5
          Thanks for the useful info everyone, yes they were vetted and everything came back normal? thats what i couldn understand, i'm thinking he must of been moving properties or something and he missed the notice he was served or as soon as he moved in (my property) he run up a load of debt. Think i better have a meeting with them very soon! Thanks again.

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            #6
            As long as they pay the rent in full on time
            If they have no debts they are in a better financial position
            Once bankrupt no debts are recoverable by creditors so your property & belongings are safe
            Credit rating systems are against the individual your property is unaffected

            So why have a meeting with them ?
            Its actually none of your business and if I was them I would refuse to discuss it with you

            Comment


              #7
              Thanks for the advice if its not going to affect me then i will not be asking them any questions like you say it is none of my business, thanks again.

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