Is there any way to recover debts from benefits tenants?

Is there any way to recover debts from benefits tenants?

0:03 AM, 25th October 2024, About 3 days ago 7

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Hi Everyone, I took my ex-tenants to court for their unpaid rent.

Although the judge has ordered them to pay, they ignored the order completely. As one of them is receiving partial benefits, I can’t apply for an earning attachment order.

I am wondering if there’s any other way that I could recover the money they owe?

For the one who does work, I applied for an earnings attachment order, the judge asked her to pay £50 per month directly, for the amount owed. It will take her nearly 17 years to clear the debts, she is probably not going to work for that long. I wonder if it is worth asking the court to reconsider?

Has anyone had a similar experience, who may be able to give me some advice please.

Many Thanks

Sherry


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JaSam

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9:40 AM, 25th October 2024, About 3 days ago

When you say ex tenant did you have to go though eviction or did they leave fairly easily but with just a load of unpaid rent? With a debt of about £10k is this just rent or other fees? It will cost you to enforce and you may not get anything. Unfortunately if they don’t have any tangible assets it’s very unlikely you will be able to recover this. I’m not even sure you can push for bankruptcy. Hoping that this is at least a 7 year stain on their credit file. Did they move into council house or another PRS landlord? Others might have better suggestions but AE will likely fail. £50 is pathetic but might be your best option for now.

DPT

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11:20 AM, 25th October 2024, About 3 days ago

Simple answer: No.

Lordship

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11:30 AM, 25th October 2024, About 3 days ago

Many years ago I had an attachment of earnings in place. £50 a month. It stopped after 1 month because the ex-tenant left work.

To cut a long story short I got my money back (less court fees) after 10 years!
Used a private investigator to track her on several occasions as she kept changing jobs, left the country for a few years, re-married (name changed) etc, etc.

Court were not interested in helping, just said when you know where she is working re-submit an application and we can look at it. They even had the cheek to say on one occasion, she is not earning enough now to do an AoE as here new rent she is paying is £125 more now than when she rented from you. (the fact she now had a husband assumed helping with bills not taken into account)

Nowadays, I would only take on tenants who had good jobs, a guarantor, some money or assets that could be seized.

I'd say it was unlikely you will get anywhere with the courts. This is why going forward you need to be extremely selective with tenants or sell up IMO.

Monty Bodkin

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11:42 AM, 25th October 2024, About 3 days ago

Are they listed on here?

https://www.trustonline.org.uk/

Most tenants evicted for arrears aren't. The judgement is only entered if it is 'enforced'.

https://www.gov.uk/make-court-claim-for-money/enforce-a-judgment

Robert M

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12:34 PM, 25th October 2024, About 3 days ago

Debts owed by former tenants, can sometimes be recovered, even if they are in receipt of benefits. This is our process:
https://www.dropbox.com/scl/fi/rkhu1hbx2vu09mattbzhb/CHT-Shergroup-Debt-Recovery-Process-Dec-2022.docx?rlkey=v1nr5avrci545hj0g23hczmeb&st=3dl5mx1m&dl=0

While this process doesn't work every time, overall it does seem to be an effective debt recovery strategy for rent arrears. However, you may need to have clauses in your AST or other documentation that allows this type of debt recovery.

Chris A

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17:55 PM, 26th October 2024, About 2 days ago

Try asking for a managed payment to landlord (MPTL) if the tenant is on benefits or they can agree to ask for it themselves

Mr Blueberry

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7:08 AM, 27th October 2024, About A day ago

A ray of hope:
Although 15 years ago I had a tenant who I had to evict for non payment of rent.
The procedure for eviction took over a year.
The bailiffs finally evicted the tenant. He gave no forwarding address.
Jump 8 months and the tenant sued me for his deposit. I counter sued as I now had his new address and won.
He said he had no income. However it was proven he did earn money as a taxi driver. He was ordered to pay £100 a month.
To disregard a court order for payment is a serious offence. He paid £100 for just over seven years.
Although I would have preferred the whole incident never to have happened - I can say the Court system did work.
My conclusion to this is if you know you are right and the tenant is legally wrong and owes you a lot of money whether in rent or damage - (mine was both), PERSERVERE and go through the LEGAL PROCEDURE - you will win. Finally, if the tenant badly damages your property take PHOTOGRAPHS before repairing the damage. Evidence is very important. Also never write disrespectful letters to a tenant no matter how appalling they treat you and your property. I hope my experience gives you hope.

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