I am in the process of completing the forms to go bankrupt and am concerned about my landlord finding out and evicting me. I have lived here for the past 5 years and always paid my rent on time. It’s all the credit cards and loans that got me in trouble. If I have to move I am unsure where I would go or if I could even let another flat.
Does my landlord need to know I am going bankrupt? ”
I understand your concerns, and they are valid, but hopefully all will work out fine.
In bankruptcy, the Official Receiver does not need to contact your landlord if you can show a current tenancy agreement. This is so the Receiver can be sure you do not have an interest in the property. If you cannot show a current tenancy agreement, they may wish to contact your landlord. I say may, as they may not feel the need.
You also may wish to review any tenancy agreement you may have as some have a clause in them stating if you go bankrupt, the landlord can have you move out. Some landlords consider a bankruptcy associated with the address a blight on the property.
Also, just because your tenancy agreement may have this clause, does not necessarily mean the landlord will exercise it. They may say fine, and allow you to stay.
In many instances if you have been living there for a while, and paying your rent on time, as you state you have, things will be fine.
In a worst case scenario situation, if you have to move, then having a bankruptcy on your credit, if a new perspective landlord uses credit as a basis for letting a place, can be an issue.
A few ways around this is to offer to pay a larger deposit than usual, or have someone act as a guarantor for the rent, or if possible, pay six (6) months rent upfront. I realise that can prove difficult.
Another option is to find a sympathetic landlord who understands your situation and is more concerned with the fact you pay your rent on time.
Jon Emge is an experienced UK debt advisor who has helped thousands and thousands of people in the UK to deal with problem debt. Jon specialises in finding good solutions for problem debt using a variety of UK specific techniques.
If you have a question you’d like to ask about how to get out of UK debt, just use the online form. I’m happy to help you for free.