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How Can We Save For A Rental Deposit And Go Bankrupt?
Question:
Considering going bankrupt
We are just about to move out of our own house and into rented, my problem is that myself and my partner both get paid on the last working day of the month and we need to start renting halfway through the month, the rental agency have advised that we need to pay a months deposit plus 6 weeks rent, then start a standing order up for the month after that, this means that we need to pay them almost £3000, we need to borrow £500 off my parents which we can then pay back 2 weeks later when we both get paid – will I need to include this debt in the bankruptcy as I don’t want to put my parents in this situation, as it is only a very short term arrangment to enable us to may 6 weeks rent up front?
Answer:
Needing a place to live and renting are a high priority, however borrowing the funds to do this and paying them back and going bankrupt could present some issues, although it is a low amount you are borrowing.
Some people save for the deposit by not making other rent or mortgage payments and also not paying their creditors as they know they are going to go bankrupt.
If it was a gift and not a loan from family it would be OK as well.
You just need to be care about borrowing and paying back/preferring someone, prior to going bankrupt.
Thank you for letting me help you.
Jon
If you have a bankruptcy question you’d like to ask, just ask using this online form. All help is free.
Source: How Can We Save For A Rental Deposit And Go Bankrupt?