Is your rented property affected when you are insolvent?
Whether your rented property is affected when you are insolvent will very much depend upon the type of tenancy that you have and who your landlord is.
If you rent from a social landlord, it is unlikely that being made bankrupt will affect your ability to live in the property. However, if you rent from a private landlord, they may be more concerned about the fact that you have been made bankrupt and may be less happy for the tenancy to continue.
Bankruptcy – Will your landlord be told about your bankruptcy?
When you are made bankrupt or you declare yourself to be bankrupt, you are obliged to give details of all your creditors (anyone that you owe money to). So, if you are in arrears with your rent, your landlord is a creditor, and they should be listed as such. Following the making of a bankruptcy order, the official receiver or your trustee in bankruptcy will contact all of your creditors and will ask them for details of the amount of their debt and how it arose.
If you are not in arrears of rent, then your trustee may feel that there is no need to contact the landlord as payment of rent would be a normal living expense. The trustee would not normally interfere with this in the same way that they would not normally interfere with you incurring other living expenses, such as payment of council tax and utility bills. The position may be different if the rent is very high and beyond what would normally be paid for that type of property and if the landlord is a family member.
It should be noted, however, that the official receiver will place a notice of your personal insolvency in The Gazette, which publishes legal notices and provides a permanent public record of your bankruptcy.
Next Steps
If you want to find out anything further about this topic then please feel free to call me on 0330 236 9930, 0330 236 9938 or 07961 116321. All conversations will be in strict confidence. You can also email me vee@navigatebr.com.
This article is for information and interest only. It is not a substitute for full professional advice, which will take in to account the specific and individual circumstances. Navigate Business Recovery Limited cannot accept any responsibility for any loss arising as a result of any person or organisation acting or refraining from acting on any information.