Housing benefit

[kathandsteve]

Hi all

A few questions for anyone able to help.

I have a family in one of my houses who are on housing benefit which is being paid direct to me. It would seem that for much of the last 9 months they have been earning more money than they've declared to the council. Therefore the council now say that I owe them 1500 pounds. I realise that they can certainly take money out of the HB still being paid to me, but after the tenant moves out will they still be able to reclaim the money from me? There was no way I could have known how many hours my tenants were working and how much they were earning !!

As a second question, the mother of the tenant is a guarantor on the contract but the initial fixed term has now expired. Is she still liable for outstanding debt, which is now getting upto 1000 pounds.

And finally any advice on debt collection agencies ? Do they work ? Which ones do people recommend ?

Thanks for any replies

Steve

[lanaby]

It's my understanding that unless you have a clause in your tenancy agreement stating that you're not liable for any overpayment, then you will have to pay it back and reclaim it from the tenant another way ie CCJ. I have recently found this wording which I amend to suit on my agreements...

"Should a tenant be or become eligible for Housing Benefit, and that benefit is paid directly to the Landlord or Landlord's Agent, it is hereby agreed that the Landlord indemnifies the Agent against any "claw back" made by the local authority's Housing Benefit Department."

Whether the mother is still liable to be a guarantor depends on the wording of your initial agreement with her. Here's something else I picked up and use where necessary.

"Is the (guarantor) agreement confined to the original lease term, or will the obligation continue into subsequent terms or a periodic tenancy? Both parties need to be clear on this.

If the agreement states that the guarantor is a primary obligator the guarantor will be obliged to carry on paying until the end of the term certain, or when the tenant leaves if the tenancy has become a periodic one.

On the other hand, should the agreement state that the guarantor indemnifies the landlord against losses due to the tenant's default or failure to observe the agreement terms, then the landlord is obliged to minimise her losses."

not sure that helps you now but may help in the future.

lanaby

[heebs]

"Should a tenant be or become eligible for Housing Benefit, and that benefit is paid directly to the Landlord or Landlord's Agent, it is hereby agreed that the Landlord indemnifies the Agent against any "claw back" made by the local authority's Housing Benefit Department."

gREAT..THANKS LANABY...I would like to add this to my contract if ok with you.

[lanaby]

"Should a tenant be or become eligible for Housing Benefit, and that benefit is paid directly to the Landlord or Landlord's Agent, it is hereby agreed that the Landlord indemnifies the Agent against any "claw back" made by the local authority's Housing Benefit Department."

gREAT..THANKS LANABY...I would like to add this to my contract if ok with you.

you're welcome to.. . I picked it up either from someone on this site or another similar site. I'm assuming it would be enforcable to get the tenant to sign that they indemnify you from any claw back (as the quote refers to using an agent). am happy to stand corrected on that one.

[Trenners]

Interesting ...... it is all very well having clauses indemnifying the landlord against any clawback from the local authority - but you need to understand that these people don't have any money (which is why they are on benefits) and can't get any credit (because they haven't got any money).

So, even with clever wording in the tenancy agreement, the fact is that if the council overpay the landlord then the tenant will not have the funds to indemnify the landlord against this overpayment.

OK - so we take the tenant to court and give them a CCJ .... or we send the debt collectors around ........ but the fact remains .....

THEY HAVEN'T GOT ANY MONEY!

Mark

[heebs]

you're welcome to.. . I picked it up either from someone on this site or another similar site. I'm assuming it would be enforcable to get the tenant to sign that they indemnify you from any claw back (as the quote refers to using an agent). am happy to stand corrected on that one.

yes..i changed it to "..tenant indemnifies landlord from any claw back..........."

[SUGAR]

Hi all

A few questions for anyone able to help.

I have a family in one of my houses who are on housing benefit which is being paid direct to me. It would seem that for much of the last 9 months they have been earning more money than they've declared to the council. Therefore the council now say that I owe them 1500 pounds. I realise that they can certainly take money out of the HB still being paid to me, but after the tenant moves out will they still be able to reclaim the money from me? There was no way I could have known how many hours my tenants were working and how much they were earning !!

As a second question, the mother of the tenant is a guarantor on the contract but the initial fixed term has now expired. Is she still liable for outstanding debt, which is now getting upto 1000 pounds.

And finally any advice on debt collection agencies ? Do they work ? Which ones do people recommend ?

Thanks for any replies

Steve

It is my understanding that any guarantor is still guarantor for the duration of the tenancy even if the fixed term has come to an end. Unless you have issued another tenancy agreement without the use of a guarantor. Therefore liability will rest with the guarantor. However as the saying goes u cannot get blood out of a stone and only form of redress is small claims court. If they still do not pay you can follow bailiffs routes but you are never guarenteed in this country to receive payment of a debt. You can only hope that these people have money and the prinicples to pay what is owed

[jamesrap]

It is my understanding that any guarantor is still guarantor for the duration of the tenancy even if the fixed term has come to an end. Unless you have issued another tenancy agreement without the use of a guarantor. Therefore liability will rest with the guarantor. However as the saying goes u cannot get blood out of a stone and only form of redress is small claims court. If they still do not pay you can follow bailiffs routes but you are never guarenteed in this country to receive payment of a debt. You can only hope that these people have money and the prinicples to pay what is owed

You may be able to avoid being sued under the adminstration of justice act 1970 should you not use DCA's

Your best course of action should the debt be below £5,000 is to raise a small claim in your local county court. Which costs £80 to issue you will need to ask for a form N1 claim form to begin.

Once you get a CCJ registerd in the name of the debtor you can use your judgement to ask the sherrifs court who I strongly reccomend you contact. As long as the claim is over £600.

[Simon Dewsberry]

read forum discussion on integrated use of dc as part of larger overall system .....to understand how they can be used VERY effectively to sort out debt problems ........

The Rodent