www.iva.co.uk

Hi,

What are the normal allowances for rent in your expenditure? Is there a guideline for a minimum/maximum amount. I'm currently paying £375 a month, although the house is not that close to work, so i'm also paying about £100-120 a month in petrol. I've got a clause in my contract that states that my landlord can evict me if I go bankrupt, so i'm trying to look for an alternative place before I decide what route to take. If I found somewhere closer to work, so the petrol costs were lower, but this was £450 a month rent, would this still be OK?

I could potentially get somewhere cheaper, but these are mostly in dodgy area's and I wouldn't feel safe living there, so i'd like to avoid this if possible.

I'm living on my own so all bills etc are paid solely by myself.

Thanks for any help.

Hi dhd

The simple answer to that is - what you actually spend. Neither Supervisors in IVAs, creditors or the Official Reciever really question the level of property rental you are paying, so long as it is reasonable.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

As long as your rent is comparable to the "Market Value" of rentals in the area you live then this will usually be acceptable, notwithstanding that the property size that you live in is reasonable i.e. you are not living in a 4 bedroom house as a single person etc....

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Thanks Melanie and Oliver for your advice on this.

If I decide to go bankrupt, then it may cause problems with my new landlords as well. Would I be able to put the rent in my parents name, so they pay the rent, and then I pay them. I'd be able to work this out with the landlords, but i'm not sure how the Official Reciever would view this. Would I be able to list it as normal in my expenditure, and just have the money passed onto my parents instead of the landlord?

Thanks again

If you did decide to go bankrupt you amy find that (as long as your previous payment history is good) your Landlord would be happy to waive this clause and continue with you as a tennant. Also sometimes you will find that if you offer a larger deposit or a number of payments up front in advance people will be happy to let to you if you have been made bankrupt.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Or alternatively, there is no problem in putting things in your parents name - so long as the landlord agrees to this.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk