Declaring bankruptcy to mortgage company

wazza24

Hi all just a quick question. i am 4 years into my bankruptcy and was chatting to my bro the other day who said even after 6 years if I want to buy a home I will have to declare the bankruptcy. if that is true then there isn't much point in applying is there? so is that true will i, say in 20 years still have to say i have been bankrupt in the past if the form asks? and if so how will that effect an application?

many thanks

debt_doctor

It depends upon the question you are asked-

If it asks "are you currently bankrupt" then your answer is - No

If it asks " Have you ever been bankrupt" then your answer is - Yes.

I think it is very unfair to have to carry a 'label' around forever in limited circumstances - afterall they disbanded and destroyed all record of the 'mortgage possessions register' for this reason.

DD

iquit

Unfair but unfortunately it is correct that when questioned about bankruptcy we have to declare it. I think I read somewhere that banks do a search anyway and our names are forever recorded for prosterity in the London Gazette. It would have been easier to commit murder as I'd serve my time after which I'd not be required to declare it.

debtinfo

iquit wrote: »

It would have been easier to commit murder as I'd serve my time after which I'd not be required to declare it.

I always think this is a bit of a stupid analogy. It is like saying that you wouldnt need to declare the murder to all the friends and family and neighbors of the person you murdered, somehow i think they might remember and i think you might be able to look it up in the newspapers of the time. Do you think that just because it has been more than 6 years since his crimes that gary glitter can go get a job in a school?

to the OP, although you may have to declare it, generally it gets less important in time and you will find that people will start tolend to you again including mortgages, i think its more a test of your honesty than anything, afterall if they cant trust you to tell the truth of your financial history how can they trust you to pay them back over the next 25 years

antrobus

iquit wrote: »

Unfair but unfortunately it is correct that when questioned about bankruptcy we have to declare it.

When questioned about anything on a loan application you're supposed to give an honest answer, Bankruptcy is no different.

iquit wrote: »

I think I read somewhere that banks do a search anyway and our names are forever recorded for prosterity in the London Gazette.

Or the Edinburgh or Belfast Gazette depending on the jurisdiction

iquit wrote: »

... It would have been easier to commit murder as I'd serve my time after which I'd not be required to declare it.

As far as I'm aware, if you commit murder, you get an automatic life sentence. The best you can hope for is to be released on licence having served your minumum term. A murder conviction never becomes 'spent' and you always have to 'declare it'.