Does it come back and bite you?

user55

Once you've been disharged, and 6 years has passed, and your credit file looks all clean and shiney again, do you have to admit to having been a bankrupt if you apply for anything? Or is the slate clean? I can't imagine I'm ever going to want credit again as long as I live, but who knows, maybe one day we might want to buy a house or something (imagine being able to afford that!)

fermi

If they specifically ask, then yes. You shouldn't lie.
But if they don't, why volunteer the info?

I think if you are required to disclose on anything, it should be clear that you must.

rog2

user55 wrote: »

Once you've been disharged, and 6 years has passed, and your credit file looks all clean and shiney again, do you have to admit to having been a bankrupt if you apply for anything? Or is the slate clean? I can't imagine I'm ever going to want credit again as long as I live, but who knows, maybe one day we might want to buy a house or something (imagine being able to afford that!)

The 'Slate', as you call it, is completely wiped clean after 6 years. In fact, you can apply for credit, including mortgages, immediately you are discharged from bankruptcy.
You are under absolutely no obligation whatsoever to inform a potential creditor that you are an ex-bankrupt. Loans, especially mortgages, are considered on your ability to repay and your credit history over the last 6 years. With mortgages, most Building Societies will often give you full consideration as little as two years after discharge.

wherediditallgo

A bit of advice I'd offer anyone newly BR is to start a regular savings plan asap. I've heard of people having some difficulties getting credit years down the line. While you don't have to disclose your previous BR status unless asked once the 6 years are up, it would definitely work in your favour to show some savings behind you.

AlanD_3

Before we got into our current problems due to the business we had problems with finances when I was at Uni. Nothing too drastic, normal stuff, overdraft, credit cards... we cleared it after 3 months or so earning a proper wage (with virtually no outgoings, we were live-in management at a hotel/pub) but our credit was shocking.

At that time we actually talked to banks and bank staff. We had a good relationship with them. We wanted to be able to have an overdraft back for emergancies (God know why, managed without for years since the business went wrong but back then we wanted one), we wanted a switch card and cheque guarentee rather than just a cash card (again... don't ask me why) and we wanted to rebuild our credit so one day we could get a mortgage... so we asked how to do it.

The manager took us into her office and explained the system to us.

"I've got no control. I have no authority. It is all on the computer which takes my judgement out of it. I judge that you have been through the wringer and have learned from your mistakes." (She should have added "provided you don't plan to start a business and let your mental health go to pot"). "I would authorise you but I can't. It is ALL on this machine." She smiled. "The thing is the machine is very stupid. It works on a set bunch of criterion. One of the main criterions it works on is cleared transactions, the bigger the better, the more the better. If you want the computer to give you an overdraft etc. then all you have to do is as follows." She leaned in as if it was some big secret, it isn't. "The day you are paid withdraw all your cash and then immediately deposit it all back in. Then do this several times a day whenever you can. Take big amounts out and redeposit in smaller amounts. The more transactions the better. If I was to see it I'd be suspicious but if the computer sees it... well you suddenly become a perfect customer... oh and don't go into an unauthorised overdraft, that'll set you back to the beginning again."

We did it. A month later we were offered a small overdraft. Two months later we were sent a solo card. Three months later our overdraft was extended, a week or so after that we got a cheque book... switch and a bigger overdraft followed very, very quickly.

Now I have no idea if this is still the case. I don't know if it is parculiar to HSBC (whom we can no longer bank with, lol). I don't know if it will apply after bankcruptcy but heck it was fun to recount a true story.

Hope it still works.

No idea though about if you have to say you've been bankcrupt after the 6 year period. My guess is it is only legal for them to ask if you have been in the last 6 years? Anyone know the actual law on that?

Alan

rog2

AlanD wrote: »

The manager took us into her office and explained the system to us.

"I've got no control. I have no authority. It is all on the computer which takes my judgement out of it.

Now I have no idea if this is still the case.

Great post Alan - I am absolutely convinced that this is the case. I also anked at HSBC, with both a business and personal account, and had good friendly relationships with the staff. I would, probably, check my balance - in Bank - twice a week, and had an account manager who actually spoke to me. If I could foresee a slight 'cashflow' problem, she was able to authorise temporary overdraft facilities, in addition to my normal 'working' overdraft, and to guarantee payment of cheques and standing orders.

Then, one day I phoned her direct number, only to be told that she was 'away on a course'. I went into the Bank, and was told that she was 'off sick'

As my need was pressing, I asked if I could speak with anyone else. It was only then that I was introduced to the great God 'COMPUTER' :eek: :eek:

I was informed, regrettably, that no-one had the authority to 'over-ride' the 'system'. I was told to phone an 0870 number, if I wanted to extend my overdraft. I phoned the number and was told that I did not meet the criteria for an overdraft extension, therefore my request was refused. I was looking for £500 of cover, in order to guarantee my unit rental payment for that month. There was no further discussion, but before I put the phone down, the 'clone' at the other end asked 'Is there anything else I can help you with today, sir?' :mad: :mad:

That was the beginning of the end.

AlanD_3

Puts one in mind of Little Britain... Computer says no...

But if the things I found out are still true (although one would imagine the systems have gotten a little more sophisticated over time) then it is nice to know that unlike a living manager you can pull the wool over the eyes of a computer.

I know when we look to rebuild our credit history we'll be doing a lot of withdrawl and deposits... I'll let you all know what happens in due course.

user55

That all kind of fits in with those accounts where you have to pay in £1000 a month...surely you can pay in the same £200 5 times or whatever and meet their criteria.

It will be very very interesting to see if it still works Alan, keep us posted!

AlanD_3

I will do.