I have about £20,000 worth of debt, approximately 50% of that debt relates to rent arrears with a housing association. A few years ago I was given a postponed possession order so I’m allowed to stay in the property as long as I pay a weekly amount set by the court. What i really need to know is, If I declare myself bankrupt 1. Will my rent arrears be written off? 2. Will I lose my home because I am no longer paying off the debt?
If you declare yourself bankrupt it is likely that your rent arrears will be written off. In addition however the housing association could potentially go for eviction.
Please seek further specialist housing advice.
This question has been answered by CAP UK a leading debt charity offering hope and a solution to anyone in debt.
Bankruptcy includes all those debts that are provable in a bankruptcy, and this would include your rent arrears. This means that the housing association cannot recover the arrears other than receiving their share of any money that may be paid into the bankruptcy by an Income Payment Arrangement. There are a couple of things to consider and you may need to speak to the housing association before taking any decisions. It is not clear from your question whether you rent the property or are purchasing from the housing association with a shared ownership scheme. If you contact Shelter they will be able to advise you on your rights regarding the property. If you wish to avoid bankruptcy and look at alternatives that may be available speak to a debt advisor as soon as possible. This question was answered by Debt Advice Foundation, an independent UK debt advice charity. If you need further help, Debt Advice Foundation provides a free, confidential helpline and can advise you. Click here to find out more.