Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

SWALLOW

Hello
Is there a point where you are no longer an 'ex bankrupt'? The information is said to 'fall off' your credit report 6 years after being discharged but as I understand it if applying for a mortgage or mainstream lending after that point (6 years) you are obliged to report that you were previously bankrupt. So it there ever really a point when you are no longer an ex bankrupt?
I really need some clarification on this point.
Thank you

philnicandevan

your correct....after 6yrs bankruptcy will fall from files BUT if anyone asks the question at any point in the future "have you ever been bankrupt" then you will have to answer yes (so it does follow you around for life)

luvchocolate

Hi I believe its 6 years from your br date not discharge date. and as said its with you for life I am sorry to say

System

SWALLOW wrote: »

Hello
Is there a point where you are no longer an 'ex bankrupt'? The information is said to 'fall off' your credit report 6 years after being discharged but as I understand it if applying for a mortgage or mainstream lending after that point (6 years) you are obliged to report that you were previously bankrupt. So it there ever really a point when you are no longer an ex bankrupt?
I really need some clarification on this point.
Thank you

Hi,

The bankruptcy will appear on your credit file for six years after your discharged date. It will then ‘drop off’ and no record will show on your file. It is true that if you’re specifically asked (by a mortgage provider or other lender) you must declare you have previously been made bankrupt.

This doesn't mean that you will automatically be turned down. Whether or not you’re application for future lending is accepted or not will depend on other factors like deposit amount (mortgage) or how you’ve managed your finances since bankruptcy. The best thing you can do after you’re discharged is manage any borrowing correctly and prove you can stay on top of payments. MSE have a really helpful article on credit files you might find useful.

Hope this helps.

Thanks,
Jess

luvchocolate

Hi can you please confirm the time it drops of your file please, I always thought it was 6 years from br date ,but above you say 6 years from discharge?
many thanks

philnicandevan

ILC it's 6yrs from date of bankruptcy....NOT from discharge

StepChange_Private_Messages

SWALLOW wrote: »

Hello
Is there a point where you are no longer an 'ex bankrupt'? The information is said to 'fall off' your credit report 6 years after being discharged but as I understand it if applying for a mortgage or mainstream lending after that point (6 years) you are obliged to report that you were previously bankrupt. So it there ever really a point when you are no longer an ex bankrupt?
I really need some clarification on this point.
Thank you

Hi,

Just to clarify my previous post, I said the bankruptcy will "appear on your credit file for six years after your discharged date" that was an oversight on my part - it is six years from your bankruptcy date NOT your discharge date. You will usually be discharged one year after your bankruptcy meaning it appears on your credit file for a further five years.

Please get back in touch if that has confused things.

Many Thanks,
Jess

System

luvchocolate wrote: »

Hi can you please confirm the time it drops of your file please, I always thought it was 6 years from br date ,but above you say 6 years from discharge?
many thanks

Hi,

That's right, it is six years from your bankruptcy date NOT your discharge date. Unless there are restrictions you'll usually be discharged one year meaning it appears on your credit file for a further five years after the bankruptcy date.

It was an oversight on my part, sorry for any confusion.

Many Thanks,
Jess

Movingon_2

There appears to be a very low uptake of FTVAs after Bankruptcy is this because they are hard to obtain or simply not worth it? I have just been declared BR and might be able to raise £8000 - £10,000 from third party sources. My total debts were just over £67,000 based on this would I be likely to be successful with a FTVA application? In total I had ten creditors.

System

Movingon wrote: »

There appears to be a very low uptake of FTVAs after Bankruptcy is this because they are hard to obtain or simply not worth it? I have just been declared BR and might be able to raise £8000 - £10,000 from third party sources. My total debts were just over £67,000 based on this would I be likely to be successful with a FTVA application? In total I had ten creditors.

Hi and thanks for your message.

You’d need to contact the Official Receiver who dealt with your bankruptcy with this offer. In the end it’s up to them if they want to put your offer forward.

If the Official Receiver accepts your FTVA application they’ll ask your creditors to accept it.

The FTVA starts if 75% of the creditors who respond accept it. It will apply to all your creditors, including any who disagreed to it.

There are fees payable in a FTVA, I’d recommend you speak to the OR for more details.

I hope this helps.

Kind regards,

Mat