If you rent, bankruptcy won’t usually cost you your home in the way it can for homeowners. But there are things to watch out for.
The short answer
- Bankruptcy doesn’t automatically end a tenancy.
- You must keep paying rent as normal.
- Rent arrears are usually included in the bankruptcy.
- A landlord may still seek possession because of arrears.
- New landlords may see your bankruptcy on a credit check.
Can my landlord evict me because I'm bankrupt?
Bankruptcy alone doesn’t usually end your tenancy. Some tenancy agreements contain a clause about bankruptcy, so check yours. Keep paying your rent on time.
What happens to rent arrears?
Arrears are usually included in the bankruptcy, so the landlord can’t sue you for them. But a landlord may still be able to apply for possession based on the arrears. Get advice from Shelter or your council if you’re in arrears.
Can I rent a new home while bankrupt?
Yes. Letting agents may see the bankruptcy on your credit file. Offering rent in advance or a guarantor can help. See also renting with an IVA and rent arrears help.
Common questions
Do I have to tell my landlord I'm bankrupt?
You don’t usually have to, unless your tenancy agreement says so. New landlords may find out through credit checks.
Can a deposit be taken in bankruptcy?
A tenancy deposit is protected in a scheme and returned at the end of the tenancy. It may be considered an asset, but trustees rarely pursue small deposits.
Does bankruptcy affect housing benefit or Universal Credit?
No. Your entitlement to help with rent isn’t affected by bankruptcy.
Getting help
You don’t have to deal with debt on your own. Free, impartial advice is available from MoneyHelper, StepChange and National Debtline. If you want to talk through whether a formal solution such as an IVA could be suitable, you can also get in touch with us.