Discovered my tenant is a bankrupt

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Tony D
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I have a single male tenant, recently divorced I think with two kids. He is on an AST, starting 7th Jan 2011 and due to finish on 6 July. I got him through a letting agent who credit checked him end of December. He is a good tenant who has paid the rent on time throughout, and I recently signed a new six month AST with him (the RLA version), due to start on 7 July.

I received a letter from the court insolvency service today informing me he was made bankrupt on 7 March. A shock to me!

This raises many questions for me...
- Should the letting agent have picked up a problem in December?
- If so, do I have redress, should things go wrong later?
- Legally, should he have informed me when he was made bankrupt?
- Am I allowed now to withdraw the new contract? It is signed by both parties but not yet started.
- Could the insolvency service force him to redistribute his cash so he starts having problems paying the rent?
- What are my rights if they want to visit the property to check/collect his assets (ie send in the bailiffs)?
- In your experience, if a previously good tenant is made bankrupt, do they tend to stop paying the rent?

Anything else I haven't thought of?!

Thanks
Tony

02/07/2011 00:00

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