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Evicting a Bankrupt – What can I do if my tenant has become bankrupt?

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This is a difficult question and one which, unfortunately, with the cost of living increasing, is likely to be asked often.

Firstly, by way of background, when an individual becomes bankrupt a trustee in bankruptcy is appointed.  The bankrupt individual should provide the trustee with a list of creditors and the trustee will contact them and ask them to declare whether they believe that they are owed money by the bankrupt individual and to return a proof of debt form detailing the extent of the monies owed.  Once the trustee believes they have identified all of the debts they will go about assessing what monies there are to settle these debts by priority and paying a portion of the debt.  I don’t intend to go into this here.

In your situation, the first question that really needs to be asked is ‘does the tenant owe any rent?’  If the tenant does then you can expect to be contacted by the trustee and you should be ready to return the proof of debt form although please do not hold out much hope in getting much if anything back by way of the outstanding rent as you are pretty low on the trustee’s list of payments.

If the tenant is more than 2 months behind in rent then you have the option of serving a section 8 notice for rent arrears and ultimately, if needs be, making an application for an order for possession.

In the unlikely event that the tenant is not in arrears then you will have to wait until the fixed term has expired and gone down the section 21 ‘accelerated possession procedure.  Both notices and applications can be dealt with here at Shergroup so if you need any help please get in touch.

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