Reversing Bankruptcy, can it be done?

Monkeyballs

Hi,

Just wondering... I declared BR in 2005.

At the time I had somewhere between £25 - 30k in debts and my only income was from a full time job which paid me about £700 take home per month.

I'm not necessarily wanting to take on that debt again but was wondering, is it possible to reverse a BR years later when you find yourself in a better position financially?

I have some debt (few grand) at the moment but I'm not nearly in the same position I was in and would likely be able to handle the debt I had previously much better?

If so, whats involved?

Thanks.

skylight

No. In the BR year whilst you are BR, you can annull a BR if you pay off all your debts and the ORs fees. But it was 5 years ago so you are no longer BR - and it's going to fall off your credit file next year anyway.

dojoman

Are you saying you could pay off these old debts in full plus the costs of the OR/Court etc?

Monkeyballs

Hi Guys,

I'm asking out of curiosity more than anything... I wouldn't be able to pay the debts off all in one go but I would now be able to meet the repayments etc... [EMAIL="I@m"]I'm[/EMAIL] asking as my GF and I are talking about buying a house but figure I'm pretty much stuffed as far as that goes...

Even if the BR does fall off my record I still have to say that I have been BR.

Luckily she knows about my BR but I don't think she fully gets my position... She's of the opinion that if we buy together then we'll be ok but I have the larger income so my past would be under close scrutiny.

Or am I completely wrong?

dojoman

Monkeyballs wrote: »

Hi Guys,

I'm asking out of curiosity more than anything... I wouldn't be able to pay the debts off all in one go but I would now be able to meet the repayments etc... [EMAIL="I@m"]I'm[/EMAIL] asking as my GF and I are talking about buying a house but figure I'm pretty much stuffed as far as that goes... No you would not be able to get it anulled on this basis.

Even if the BR does fall off my record I still have to say that I have been BR. If you are asked then yes.

Luckily she knows about my BR but I don't think she fully gets my position... She's of the opinion that if we buy together then we'll be ok but I have the larger income so my past would be under close scrutiny.

Or am I completely wrong?

Hope this helps.

skylight

The housing market is in a bad place. For eveyone.

You will need a huge deposit now, whether you are BR or not, with or without the massive income. With your BR off your file next year you will certainly be in a better position and there will be lots of lenders who now will not care too much about your BR in terms of a mortgage. There will be some that do though; but there would be lenders who wouldn't lend to you anyway even if you had never been BR if you hadn't matched other parts of their criteria.


You will be better off going to a reputable broker and getting him to search the whole of the market (which has shrunk too in terms of mortgages offered!) rather than a "traditional source" like a high street bank. Your BR may make things a bit tougher but not impossible.

debtinfo

Ok, this is not me saying you should try and do it but, in theory you can annull the Bankruptcy at any time by way of payment or securing the debt in full

In full means The whole debt plus statutory interest at 8% since the start of the bankruptcy plus The insolvency service fees of about £1,000 plus about 17% of the debt.

Remember that when you went bankrupt you broke the agreements and put them in default, this means that the whole amount is due not just the normal monthly payment

Monkeyballs

Ah, ok.

Thanks everyone, most enlightening.

If I'm being completely honest it was a pie in the sky idea anyway. More of a what if...

But it's been interesting finding out.

I think what we need to do is knuckle down for a few years and get a MAHOOSIVE deposit saved and then take it from there. I reckon with my track history with the laydeez she'll have dumped me by then anyway and I'll just have a massive pot of dosh to play with :-)

JOKE!

Do appreciate all your advice on the subject tho.

Regards,