advice on back rent
Discussion
ive been asked to help out a family member, who has got himself into some awkward situations. basicily he hired a unit (barn) off of a farmer but didnt sign a contract when he moved in. he moved out in october after being there 20months, and moved his stuff out. he owes the farmer equivilent of 5 months rent, as his business went under, he didnt go bankrupt, just stopped trading. myself and my girlfriend are trying to help him out on this. (only cause he is family). does the farmer have a court claim for the money as no contracts were signed? and he was able to move his stuff out? any info would be good, thanks.
Edited by nigel79 on Wednesday 14th January 22:46
I am sure there doesnt have to be an actual paper signed contract for there to be a contract. A contract consists of an offer ie. the offer from the farmer to rent his space for a certain amount. There then has to be an acceptance ie. your relative moving into the premises. There is then the requirement of consideration ie. the paying of rent. Finally there has to be an intention to create legal relations and the payment of 20 months rent relates to this. So, in my opinion, there is a contract between the farmer and your relative. I'm not a solicitor and I only comment on this as someone who rents out a fair amount of property both residential and commercial and I once had cause to look it up. If there is someone in the legal profession out there who says I am wrong then I bow to their superior knowledge.
Yep the farmer does have a case against him and can sue for the rent arrears.
Whether it is worth him doing that is his decision and he may decide it's not worth it.
I'd suggest that your family member makes him an offer of what he can afford to pay at the moment.
Does he have bigger debts generally? If he is likely to need to go bankrupt he should consider all the debts in the whole and not just deal with individual debts.
Whether it is worth him doing that is his decision and he may decide it's not worth it.
I'd suggest that your family member makes him an offer of what he can afford to pay at the moment.
Does he have bigger debts generally? If he is likely to need to go bankrupt he should consider all the debts in the whole and not just deal with individual debts.
Edited by Piglet on Thursday 15th January 09:44
thanks for the info, i spoke to my relative today about this post, he is considering going bankrupt as he does have other depts as well. he said that the amount is just over £1600, for the rent. i think he overal depts are about £2500, so not stupid amounts by my own standards. If he files for bankruptcy, would he still have to pay the amounts, or would the farmer and others have to put a claim in for the outstanding amounts. Does anyone know about iva's as he mentioned this as well but neither of us know about them. thanks
I'd recommend talking to the farmer asap and explain the situation.
Ultimately he'll want his money as quickly and with as little hassle as possible. If you can come up with an agreement you can afford and is acceptable to him then there might be a happy ending.
Leaving him hanging on with no money and no information isn't likely to make him amenable to any suggestions!
I'd try dredging up what you can afford and going to see him pronto!
Waving a bundle of cash gives more credibility to claims that you do intend to pay him eventually.
Ultimately he'll want his money as quickly and with as little hassle as possible. If you can come up with an agreement you can afford and is acceptable to him then there might be a happy ending.
Leaving him hanging on with no money and no information isn't likely to make him amenable to any suggestions!
I'd try dredging up what you can afford and going to see him pronto!
Waving a bundle of cash gives more credibility to claims that you do intend to pay him eventually.
Nigel, I agree bankrupt or probably even an IVA on £2.5k is crazy.
He should get in touch with one of the Debt Managemenent CHARITIES (just in case you missed that that's CHARITIES) not one of the Debt Management COMPANIES that will in many cases take more money in fees that his debts add up to.
Look at something like http://www.cccs.co.uk/
It would also be worth him looking on www.moneysavingexpert.com and looking on the debt forums there for links to reputable help.
He might be better with a Debt Management Plan (DMP) if he is in a position to pay his debts but not all at once.
He should get in touch with one of the Debt Managemenent CHARITIES (just in case you missed that that's CHARITIES) not one of the Debt Management COMPANIES that will in many cases take more money in fees that his debts add up to.
Look at something like http://www.cccs.co.uk/
It would also be worth him looking on www.moneysavingexpert.com and looking on the debt forums there for links to reputable help.
He might be better with a Debt Management Plan (DMP) if he is in a position to pay his debts but not all at once.
He should just pay what he owes when he can and stop trying to freeload off someone else 
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