How long do I need to declare a bankrupcy for?

Xaqster

Good Evening all,

I hope that someone can help me with my question.

My wife was declared bankrupt in May 2000, and was discharged in May 2003. When applying for home insurance, car insurance, credit cards or loans, do we still have to declare the bankruptcy?

I have had some brokers say yes, absolutely, and some say no, not after 5 years from the discharge date. What are the actual rules in this?

If this is a permanent mark on our credit history, I really do not think that that is in any way fair.

Thanks
Drew

mjm3346

Depends how the question is put, if it is something like "have you ever been declared bankrupt" you should answer yes.

mjm3346

Thought there was a thread about this somewhere, have a read of this and the one it links to.

https://forums.moneysavingexpert.com/discussion/3289126

4$£&*(£$&*(!

After so many years it's disappointing the industry still has no uniform approach and it still causes discharged bankrupts issues.

As has already been shown there is a thread I started linking to bankrupt friendly insurers, and also within that thread is a link to my original fight to get this issue addressed. Sadly, despite years of fighting, talks with individual insurers, talks with the ABI, lobbying the FCA and an attempt at engaging MP's, this issue is outstanding.

The best thing I can suggest is for us all not to give up and to instead email the FCA advising them you think it is wrong insurers should take bankruptcy into account after being discharged for a number of years. Potentially there is an argument to extend this to all financial institutions and I certainly think there may be validity to say why would a mortgage lender need to know about a 40-year-old's bankruptcy that may have happened when they were 20 and no other issues have happened since?

Insurers are probably the easiest starting point though as it's debatable how much a risk a discharged bankruptcy poses, so let's start with the easiest options first. It has been years I have been plugging away at this, it may be years again until we get a decent resolution, but let's keep at it. The more people who have inspiration from this and decide 'let's email the FCA today' the more chance we have getting this addressed.

4$£&*(£$&*(!

This thread has also reminded me to speak to the FCA again, so I've dropped them a line to say I really think they need to consider insurers asking a non-timed question 'have you EVER been bankrupt' is not appropriate. (Who is the bigger risk - someone before bankruptcy, loads of debt, needy of cash; or someone who was bankrupt years ago, has since really good credit, no money issues? But who out of those two will get the bum insurance deal?)

Give the FCA an email and tell them your thoughts, I tend to be quite 'wordy' but even if you just say it's wrong insurers keep asking this for the rest of your life and they should stop, it's a help.

Emails go to Consumer.Queries@fca.org.uk

TheGardener

I don't know how any of the systems work - but is it worth trying to persuade the comparison sites, its their e-form that asks the 'ever BR' question? I suspect it is only laziness on their part After all - its costing them actual business - most of us know the best way for BR's to get insurance now is to go direct to the insurers as they, in some cases, don't even ask if unless you are undischarged (the instalments/credit issue) - certainly that was my experience with the co-op?