question category: IVA

Bankruptcy Search
Submitted on: 5th Jun 2009 by Non-Member | Total Answers: 2

I am into the third year of an IVA and am trying to purchase a property with my partner. We have been accepted for a mortgage, however I am concerned lender may have second thoughts after solicitor does a bankruptcy search. Does anyone know if solicitor recommends to lender about pitfalls of lending to someone with iva or if they simply search with land charges register to see if you are bankrupt.

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Re: Bankruptcy Search

Hi,
Have you already spoken to your supervisor of the IVA? If not I would suggest you do so. They can advise you further on this, without all the facts it is a bit difficult as your situation has most likely changed since you started your IVA and they are there to help you.

As far as I am aware all mortgage application forms will ask you if you have ever been bankrupt and am fairly certain more and more are now asking about IVA's or arrangements.

Your IVA will most likely show on your credit file which your mortgage lender has probably already seen, you can always write off the the credit bureaux for the information. There are 3 I think - equifax and experian and call credit.

But at the end of the day your supervisor can also confirm you have kept up with regular payments and therefrore your mortgage could go ahead but you do need to advise them if you have not already.

Submitted on: 5th Jun 2009 by Justine Member

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Re: Bankruptcy Search

You can't really do much about this, the IVA will show on your credit file . You say you have already been accepted so I assume that means you have already been credit checked.

As I understand it a bankruptcy search is done on the house you are buying not on you. Its to see if the house is subject to a bankruptcy proceeding - in which it can't be sold.

Its difficult but not impossible to get a mortgage in an IVA, you need a sizeable deposit. I'm sure you have had good mortgage advice - and I can't advise you about mortgages anyway.

This question was answered by Debt Advice Foundation, an independent UK debt advice charity. If you're considering entering into an IVA, Debt Advice Foundation provides a free, confidential helpline and can advise you on whether you qualify. Click here to find out more.

Submitted on: 9th Jun 2009 by Darren Member

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