Recovering arrears

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    Recovering arrears

    Our ex-tenants owe us £1500 in rent arrears. They have kept us informed of their new address, their financial situation etc. and say they want to pay us back in the long run, but they have other debts and with a new baby it's not going to happen any time soon. We have been reluctant to go through the courts, and now they tell us that they have (foolishly, in my opinion) signed up with a debt management agency to start paying off their debts. They have told me that the dmc will be contacting me "to let me know whether they can deal with our debt". Is there any reason they wouldn't be able to (apart from the client not telling them, of course!) and do we have the right to ring the DMC and ask?

    #2
    Just so we are clear....are you happy to deal with the debt in this way? Or are you wishing to avoid dealing with this company if possible?

    On a side note, how lucky are you to have honest enough tenants to keep you up to date with their contact details and repayment intentions! :P
    Any posts by myself are my opinion ONLY. They should never be taken as correct or factual without confirmation from a legal professional. All information is given without prejudice or liability.

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      #3
      Here's a link to National Debt line (a voluntary body )with some facts about Debt Management plans which may help you understand a little bit more about the various ways debts can be managed / disposed of.

      http://www.nationaldebtline.co.uk/en...anagement_plan

      My hope though is that they are not entering into an IVA (Individual Voluntary Arrangement) as this would be almost as limiting to your debt as bankruptcy.

      The DMC can only speak to you about the debt if you phone up now, if they have written permission from your former tenant - Data Protection Act etc. Once they have written to you them you should be abe to speak with them.

      Originally posted by caroline7758
      Our ex-tenants owe us £1500 in rent arrears. They have kept us informed of their new address, their financial situation etc. and say they want to pay us back in the long run, but they have other debts and with a new baby it's not going to happen any time soon. We have been reluctant to go through the courts, and now they tell us that they have (foolishly, in my opinion) signed up with a debt management agency to start paying off their debts. They have told me that the dmc will be contacting me "to let me know whether they can deal with our debt". Is there any reason they wouldn't be able to (apart from the client not telling them, of course!) and do we have the right to ring the DMC and ask?
      Any information or opinion given in this post is based only on my personal experience, what I have learned from this, other boards and elsewhere. It is not to be relied on. Definitive advice is only available from a Solicitor or other appropriately qualified person. E&OE

      Comment


        #4
        I'm happy to deal with the debt this way, but if there's some reason why they can't include us, we'll have to go through the court.

        (I think our ex-tenants are just very naive, in many ways!I've given them lots of advice along the way, wearing my CAB hat, but they never seem to make the best decisions!I think that's why they've been honest with me, but I don't think they've been honest with all their creditors- our present tenants have been receiving scary visits from debt collectors)

        Pippay, I don't think they've had the sense (from their point of view) to go for an IVA. They have gone to Chiltern, a company that charges them quite a chunk of their monthly payment to make offers to their creditors and makes the payments for them.

        Comment


          #5
          Oh dear .. i can see what you mean about not being the brightest ...

          Originally posted by caroline7758
          They have gone to Chiltern, a company that charges them quite a chunk of their monthly payment to make offers to their creditors and makes the payments for them.
          Any information or opinion given in this post is based only on my personal experience, what I have learned from this, other boards and elsewhere. It is not to be relied on. Definitive advice is only available from a Solicitor or other appropriately qualified person. E&OE

          Comment


            #6
            Don't you think it strange that one of these people can shaft the other and make a baby but when they shaft the landlord they think that's okay! (please feel free to substitute "shaft" for words of your own choosing if you prefer!)

            Gosh am I'm being politically incorrect here!
            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.

            Comment


              #7
              Paul ... only ASSES assume!!!

              There is no evidence to suggest they actually shafted each other to make a baby.

              It could be a third party shafting or a virgin birth!
              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.

              Comment


                #8
                Originally posted by caroline7758
                They have gone to Chiltern, a company that charges them quite a chunk of their monthly payment to make offers to their creditors and makes the payments for them.
                I'm obviously pretty naiive too... so these companies can take over a debt and then decide unilaterally whether or not to pay the creditor on their whim (a decision presumably based on how much clout the creditor has)? Does the creditor have any say in the matter? Does he/she lose the possibility of suing the original debtor directly?

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