Discussions on life after your bankruptcy discharge.

Moderators: TalbotWoods, JaneClack

By eddieryan
#468783 Hi

I'm a newbie here and have a good look through the other posts but can't seem to find an answer to my question (perhaps there isn't a definitive answer!).

I declared myself bankrupt in Feb 2004 & it was discharged (under the new rules which came in around that time) on 1st April 2005.

We are in the process of looking to apply for our first mortgage and I wanted to check the position regarding declaring discharged bankruptcies over 6 years after the discharge. I have checked my credit file & there is nothing on there relating to the bankruptcy, as I would expect.

Is there a hard and fast rule about whether the bankruptcy still needs to be declared (like for example on car insurance where a speeding conviction which is regarded as "spent" doesn't have to be declared even if asked)?

Hopefully someone can help :)
User avatar
By TalbotWoods
#468823 Hi and Welcome

You are going to need to declare it, but is should not affect the application.

When you apply for high level finances, such as major loan or mortgages, creditors will routinely check the non public bankruptcy register (held in Birmingham) to see if you have ever been declared insolvent. if it was a creditor bankruptcy or self declared, if there was a BRO/U in place, and so on.

This is firstly to makes sure you are not hiding a fact form them, and to see if you are a higher risk (second creditor bankruptcy with BROs in place are the highest risk of defaulting), but it give them the chance to discuss with you what you have put in place to make sure this doesn't happen again.

Many many former bankrupts happily get a mortgage after discharge, and I suspect your application will be the same.

However, you have to remember that the new mortgagor application rules are in place now, and at present we have no idea how that will affect application rates, I do know that before they came into place about 1 in 3 applications failed.

But be honest, it is better to get the chance to discuss it. rather than the application being rejected at the initial checking and scoring phase!

Tim