What is rental arrears?
Having a roof over your head is important and losing it could cause a major knock-on effect financially as well as psychologically. Not all of us are in a position to own property and have to rent in order to have a place to stay.
Having outstanding rent should be your most important debt to reduce and get out of. If you don’t find a way to pay back what you owe, this could lead to lots of problems. You could lose your home and have problems finding somewhere else to live.
You might not be able to rely on the local authority to rehouse you because they might consider you to have made yourself intentionally homeless while you might find it hard to get credit or borrow money in the future.
Lawsuits are filed to collect these debts:
In the case of outstanding rent, the creditor/landlord may have the right to file a lawsuit against the consumer to force payment of the debt through a judgment.
The lawsuit must be served upon the debtor according to the service of process rules of the state in which the consumer resides. Then, the consumer can defend the lawsuit by asserting various defences such as fraud in the creation of the account, or that the amount sought after is incorrect or has been paid, to name just a few.
If the case is not properly defended, then the creditor will obtain a judgment in its favour. When the creditor has a judgment, it may seek involuntary means to force payment such as wage garnishment, asset attachment or lien on the property.
How debt review can help those with late rent
Using a Debt counsellors like ezDebt we will formally review your finances and develop a suitable monthly budget by negotiating with your creditors on your behalf
- Enables clients to make one monthly debt repayment
- Stops creditors from hassling you
- Decreases judgements against you
- Prevents you from declaring bankruptcy
- Maps out the path towards becoming debt free
If you’ve fallen behind with your rent payments, you should take action quickly to deal with the situation.