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If I was made bankrupt 8 years ago, am I legally bound to declare it on applications?

9 years ago - Posted by

If I was made bankrupt 8 years ago and have spent a lot of time rebuilding my credit rating over the last 4 years, do I still legally have to declare that I was once made bankrupt if I am filling in a mortgage application or application for credit? On general credit card application forms, the question is not generally asked, but I know on a mortgage one it will be. The bankruptcy order is no longer showing on my credit file so do I still have to declare this? What are the repercussions if I dont?

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15 Answers

TAD Member

9 years ago

Does the same apply to IVA

TAD Member

9 years ago

I went bankrupt in 2000 I have just learnt I have an retirment plan lump sum due, will this go towards my bankruptcy, or can I have the money?

TAD Member

9 years ago

Hi, The past will not affect the present as long as you already know how to manage your accounts for the second time.

TAD Member

9 years ago

Yes, I agree with that the most important is the present management of a person on his accounts. It doesn’t matter whether he experience bankruptcy.

TAD Member

9 years ago

The most important will the present and the chances given to move on and start a new beginning. It’s a lesson learn and try to improve the financial process to prevent the same problems.

TAD Member

9 years ago

Hi, The past will not affect the present as long as you already know how to manage your accounts for the second time.

TAD Member

9 years ago

Yes, I agree with that the most important is the present management of a person on his accounts. It doesn’t matter whether he experience bankruptcy. Seek more advices from an experts consultant.

TAD Member

9 years ago

How do I get a credit card when I have been bankrupt, it has been eight years since this happened and I am now in a saving situation with no debt.

 

ANSWER TO YOUR QUERY:

If your bankruptcy was concluded so many years ago then it is no longer likely to be visible to anyone on any public register or your credit reference agency file unless you were subject to a restriction order.

Being assessed for credit facilities would mean filling in an application form and the answers you provide, along with information from credit reference agencies, is used to decide whether to allow you the facility.

You can find a lot of useful information about credit cards on the Money Advice Service website https://www.moneyadviceservice.org.uk/en/categories/credit-cards-and-store-cards

This question was answered by Debt Advice Foundation, an independent UK debt advice charity.  If you need further help, Debt Advice Foundation provides a free, confidential helpline and can advise you.  <a href="http://www.debtadvicefoundation.org/talk-about-debt" title="Debt Advice Foundation website" target='_blank'><b>Click here</b></a> to find out more.

 

If you have a question to ask, please post it in the 'Ask a question' section, thank you.

TAD Member

9 years ago

Of cause they do a bankruptcy seach, but as it will now have gone from the credit file it will no longer show up.

By using a creditor, with no ties into the BR, you may stand a better chance of being accepted. But remember creditors merge. Remember Lloyds TSB and Halifax !!!

You should answer truthfully though. If you don’t and they subsequently find out you run the risk of being repossessed.

TAD Member

9 years ago

But doesn't a solicitor do a bankruptcy search??

 

 

ANSWER:

After you are discharged from bankruptcy there is no piece of legislation that says you have to declare this to anyone in the future. However there may be occasions when you find a direct question about any previous bankruptcy.

A professional membership or licence may have a requirement that you prove that you are a “fit and proper person” and there may be a question about bankruptcy within the application. It could appear on an application for credit and may simply ask have you ever been subject to a bankruptcy order.

If you have a question to ask, please go to 'Ask a Question' to post your enquiry. Thank you.

TAD Member

9 years ago

Doesn’t a solicitor do a bankruptcy search

TAD Member

9 years ago

You might think I’m being a spoilsport with this answer. Bankruptcy is a matter of public record and although you might think no one will ever find out surely its better to be safe than sorry.

You are quite right that the lender is mostly interested in your ability to manage money and an 8 year old bankruptcy shouldn’t affect your application. But a lie might.

If you lie on a mortgage application form – the most common time this question is asked- you could be “obtaining a mortgage by deception”, you will always be asked “Have you ever been made bankrupt” and you should tell the truth.

TAD Member

9 years ago

Sometimes it's really easy to misunderstand questions. Often questions like that read like they are asking if you are a recent bankrupt, and if you're understanding is that once discharged the slate is wiped clean and you don't need to declare it, what can you do.

 

If you have a question to ask, please go to 'Ask a Question' to post your enquiry. Thank you.

TAD Member

9 years ago

Oh excellent. Would that be even if it asks the question “are u or have u ever been made bankrupt”? I would prefer never to mention it again and assume that because I will pay all bills on time, there would never be any further investigation.

TAD Member

9 years ago

We could never encourage you to not tell the truth but if you were to not mention it as it’s not on your file and you’ve been discharged and life’s moved on, then that would be understandable. They’re only really interested in your recent ability to manage money, that’s why credit files only last 6 years. Good luck and well done on getting your finances back together. You should consider sharing your story with people asking question on the site, it always inspiring to hear from people who have been through it and prospered.

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