Declaring Discharged Bankruptcy after 6 years

FamilyTreo

Once information on your credit file has shown as settled and has been removed after the six year period. Do you still have to declare to a potential mortgage lender that you are a discharge bankrupt, even though your credit file shows nothing to that effect?

I was declared bankrupt in August 2004 and discharged exactly 12 months later. I paid for a discharge certificate from the court, but I didn't realise I had to start cleaning my own files. Currently, my credit files and the defaulted accounts still do not show as 'settled', so I now have to start cleaning them all these years later.

I assume the information about the defaulted accounts will only be removed after six years provided they are marked as settled by the Lenders?

Any help on the situation would be appreciated.

nervousmother

If you are asked by a mortgage lender if you have ever being BR then you have to say yes, even if its 10 years after.

As far as im aware everything drops off your credit file after 6 years wether it is settled or not..

tigerfeet2006

Yep! it will drop off your file after 6 years but if they have been defaulting you for 2 years after your AD then that puts extra time on the file with bad credit, which is why you need to do the clean up so they are marked to fall off your file the same time as the BR.

fermi

FamilyTreo wrote: »

I assume the information about the defaulted accounts will only be removed after six years provided they are marked as settled by the Lenders?

They will be removed six years from the default date whether they are marked as settled or not.

The most important thing is to make sure that any default date recorded is not later than the bankruptcy date. That is the thing that if incorrect will make the entries stay on your files longer than they should.

Thatcher44

This is useful information - I can't wait to get if off my file.

Question - if after 6 years there's nothing on your file, and you're asked the bankruptcy quesiton by a mortgage lender, then surely you can just say 'no', as they shouldn't be aware of it???

fermi

Thatcher44 wrote: »

Question - if after 6 years there's nothing on your file, and you're asked the bankruptcy quesiton by a mortgage lender, then surely you can just say 'no', as they shouldn't be aware of it???

No, because mortgage lenders apparently can and do query the permanent register held by the Insolvency Service. About the only lenders who ever do, but it will reveal your BR even after the six years.

Plus, of course, your record in the London Gazette will remain.

FamilyTreo

fermi wrote: »

The most important thing is to make sure that any default date recorded is not later than the bankruptcy date. That is the thing that if incorrect will make the entries stay on your files longer than they should.

Thanks, that's interesting to know. From what I can remember, the last time I viewed my files was on the Experian web site sometime last year. In the process right now, sending written request for my up to date files from all agencies. It would be a shame (and a pain) if the lenders had indeed carried on defaulting the accounts, as the 6 year period is up this August, actually on my birthday!

THANKS TO EVERYONE ELSE FOR YOUR INPUT. Appreciated :beer:

boltonangel

I worked for a major bank as a mortgage advisor and the question was always 'have you ever been declared bankrupt?'
You have to answer this truthfully.

fermi

boltonangel wrote: »

I worked for a major bank as a mortgage advisor and the question was always 'have you ever been declared bankrupt?'
You have to answer this truthfully.

Indeed. Lying on a mortgage application would be an extremely bad idea.

FamilyTreo

fermi wrote: »

Indeed. Lying on a mortgage application would be an extremely bad idea.

I never intended on lying, just simply asked the question?

fiveyearplan

FamilyTreo wrote: »

I never intended on lying, just simply asked the question?

I think fermi was just confirming Bolton Angel's statement.