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jasmin26 | 21:07 Thu 27th Aug 2009 | Personal Finance
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what happens to a council house during bankruptcy
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what do you mean? it belongs to the council so nothing happens to it
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can the tenant be evicted even though there are no rent arrears
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Can't see why. One would not be in breach of one's tenancy agreement.
All the Council would be concerned with is payment of the rent.
Providing the tenant does not fall into arrears the Council would not evict them.
If however there are arrears (that might become part of the bankruptcy) then that is a different matter.
I have never known a council house go bankrupt before, so you're on new ground there!
If there are no rent arrears there is no problem at all. If there are rent arrears and the tenant is paying them off over a period (in addition to paying the normal rent) under a written agreement with the Council or under a Court order, the normal procedure is that the Official Receiver accepts the situation and allows the arrears payments to continue so eviction would not occur.
No risk to you. The council only want to know you can pay the rent. Bankruptcy won't affect the house at all. Check out insolvency.gov.uk for information.

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