Huge debt to landlord. What to do next

[NotMyMoneyWorries]

My daughter (25) has got herself into a huge financial mess, and owes over £12k in unpaid rent

We didnt know about this, she’s very difficult to talk to and wasn’t living anywhere near us. We thought she was working, and managing ok (as this is what we were told) but it turns out she was getting very few hours on a minimum wage zero hour contract, and was getting deeper and deeper into debt with interest added. She didn’t have a guarantor, as she’d paid upfront for her first two years rent (one year at a time), but there’s no more money

We first heard about this after she asked her grandparents for the money and they told us. Apparently she had a letter saying goods would be seized to the value, or something like that.

Four weeks ago my husband hired a van and drove up and brought her home. She contacted the landlady who has about 240 flats, apologising, and asking if they would get in touch regarding a payment plan. She explained she wasn’t currently working but had applied for jobs. Since then she’s found a job, and as she’s not paying us rent, I think she could afford to pay £1000 a month off her debt. She’s not mad happy about this. I don’t care.

The problem is that they haven’t been in touch. I think my daughter would happily keep her head in the sand and pretend it’s not happening, however I’m a worrier, and I think until somethings sorted her debt will keep growing

I want her to ring up today, but does anyone have any advice on what to say?

Sorry this is so long, and a bit vague. We only know what she tells us, which isn’t much

Is the rent the only debt she has or are there credit cards, overdrafts or whatever too?

I'd suggest professional advice from an outfit like Step Change or National Debtline. Be careful googling for debt advice as there are a lot of sharks out there!!

I think she'll need legal advice. I'm really surprised that a private landlord didn't act sooner. Was she never served a section 21?

a reckless landlord allowing this kind of unpaid rent to build up like this?!

paying upfront for first two years

was this from an inheritance?

Has she actually ended her tenancy and returned the keys and empty flat to landlord?
was there a deposit paid? Is that being put towards the debt?
I have never known someone not taking action for a rent arrears of that size, usually notice is served after 1 months rent not paid. That sounds like 6 months of debt, but could be longer? With no legal action? Doesn’t ring true.

has daughter got any letters from landlord? Was daughter not able to claim benefits or housing benefit?

at her age she does need to deal with this, can she check her credit file?
thecleyter you describe sounds like a debt collectors letter, usually after court debt is passed to debt collector/bailiff. I wonder if she has had her head in the sand for some time…

What did the landlady say when she was initially contacted? She needs to be putting that money aside for when they come calling- personally I think you should hold onto it

If she's had a letter saying "goods will be removed to the value of" then it sounds like she's had a court judgment against her and it's been put in the hands of court bailiffs. In which case she has destroyed her credit rating.

As a previous poster said - she may have other debts too that she's not admitting to.

One option would be for her to declare herself bankrupt and to start again from zero.

Either way she needs to put all her cards on the table and speak to a debt advice service.

As far as I know there are no other debts. She says not, although I can’t 100% believe her

The trouble is she’s NOT honest.

I dont know about the section 21 either. I agree though that the debt collection letter wouldn’t be the first. When she was packing her flat she found unopened Amazon packages - if she doesn’t open them, she’s not going to open other letters. Loads of times I’ve sent cards that ‘haven’t arrived’

Not an inheritance as such. Her rent was approx £9k a year, and she had almost £15k saved when she left home (some was savings, some was where we’d taken ‘rent’ from her since she left college, and some was given to her as a baby) then her grandparents gave all the grandchildren £3k by last year.

when she first left home and paid for a years rent upfront, we said she needed to pay back her savings every month. She didn’t

I don’t think there was a deposit paid. I believe she just paid the full rent

i think there were previous attempts to contact her because I’ve been in the phone to her when there’s been banging at the door, but she said it wasn’t her flat.

hopefully I’ve answered everything

op she will be in other debt up to her eyeballs i’m afraid

Apparently the landlady’s not been in touch at all. This could be because it’s now in the hands of a debt collection agency, I don’t know

I bet there are unpaid utility bills too

She won’t talk to us.

yes I’m definitely going to be taking £1000 a month off her when she gets paid. Personally I think she only needs £100 a week plus £50 for the gym (and even then I think that’s a lot). She walks to work, doesn’t need to buy food, bills etc. She got angry as she works ‘all these hours’ (just normal full time hours) and deserves something to show for it

She needs the help of Citizens Advice. Creditors seem to respond better to an official body rather than Joe Bloggs trying to sort their own debt out.

it sounds like her mental health also needs to very much be a focus for you op

Can she show you her credit score?

I agree that if she has no assets and a low income, bankruptcy, or a debt relief order might be appropriate. Or a formal payment plan, whatever is appropriate based on her circumstances.

Something like that however, might ban her from credit, and even renting by herself for several years, but it might be the best solution if she uses the time to deal with whatever issues she has and learn to manage her finances responsibly.

Just be thankful you or no-one else is her guarantor, as that would make them liable for the £12k.

I think you’re right @brocollilover Im fucking terrified. Apart from my mortgage I’ve never had debt

Only the other day she said she pays £25 for giff gaff phone, and I showed her that for £10 she’d get 25g data, which is plenty as we have wifi. She’s paid £25 again…

Not at all 3 months before LL acts then flase promises for a few months court action takes month to process
then 3 months notice
LL have little power play the system and take this piss easily add up to 12 months without paying anything

Are you sure you want her living at home if she's feeling so resentful and tells you lies?

It does sound as though you're doing the right thing but it's going to seem like a very long year while she pays off that debt.

I agree with a PP about contacting Step Change. They are brilliant at sorting things out, but she would have to be honest with them.

oh come on

the OP’s needs help. Financially and mental health.

it would take more than this for me not to have my daughter home

I’m so thankful we’re not guarantors.

I think she’s going to be living with us for a long time. She’ll hate it, but it’s tough. To be honest it’s not what I want either, she’s not easy

I imagine the landlady has been to court on more than one occasion if bailiffs are threatening to remove goods. Your last sentence speaks volumes though, she isn't willing to address the issue of her overspending (and it is overspending because she'll have been wasting her rent money on something else). Until she addresses these issues she'll be the type of person who gets herself perpetually into debt over and over again.

Has she had her post redirected to yours just in case letters from bailiffs/landlord are arriving?

Only thing you can do is make sure she fixes this. Don't bale her out . Getting herself out of this mess will teach her a valuable lesson. Fix it for her now and you'll be fixing things for ever more.

@brocollilover no question of us not having her home! My dad said the same about letting her fend for herself, but like you, I’d never do that.

yes she’s resentful, and she lies, and yes I hate it, but although she’s 25 I still feel responsible. We’ve always tried to teach the kids about money. Her younger sister is great at saving, and price checking and buying saving hand where possible. I don’t know where we went wrong

it’s not as though she was living an exciting life. She doesn’t seem to have many friends and spends all her free time at the gym or playing animal crossing or The Sims

Make sure there's a paper trail of anything you do.
I would seek advice as to where you stand if collectors, particularly court bailiffs if there is a ccj come knocking at your door now she lives with you.
I would sit down with her and ask her to come clean with you now you are part of it all. Try not to get angry, but offer to work through it together.
She may not care. Or she may be scared shitless and in avoidance.
Either way she needs to know the outcomes of her actions and learn a different way with money.
Living looking over your shoulder for bailiffs, or scared to answer the phone is a stressful way to live.
She's made a mistake and needs to accept help to rectify it.

Can you make a condition of your DD moving home that she is open and honest about all her debts? I get that she needs additional help and support, but I think that she needs to be more accountable for her financial situation.

Good luck, Op. Our kids in their 20s don't have an easy time of things financially at the moment, but your DD seems to have made a spectacular mess of things.