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Question Title: Bankrupt Tenant
| Question: 259 |
| I have always understood that it is not legally permissible for a bankrupt to take a tenancy of a residential property. Can you confirm that this is the case, and if so, how such a tenancy should be set up - in the name of the guarantor perhaps ?
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| Answer: |
| There are legal provisions that prevent undischarged bankrupts from holding certain positions or offices which include Justice of the Peace, councillor, and MP. He must not obtain credit over a stated limit (£250 unless recently revised) without informing the creditor. Also, he must not carry on a business without disclosing the name under which he was made bankrupt to those that deal with him. We are not aware of any rule that prevents a bankrupt, undischarged or otherwise, becoming a tenant - and it is unlikely that such a provision could equitably exist (especially under the recent Human Rights Act) - otherwise all bankrupt could potentially find themselves homeless. You have mentioned that a guarantor is available and this is a strongly recommended safeguard in the circumstances.
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References:
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Pages:
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Hyperlinks:
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Letting Handbook |
Chapter 12 |
letting-handbook-and-factsheets.html
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For more information, discuss on the Forum
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