Answering Y/N to the Bankruptcy Q with Halifax...

notmyrealusername

My situation is that I entered into an IVA in 2006, this was completed by way of full and final settlement in Sept 2009. Six years after the start date of the IVA ie Sept 2012 all defaults and record of the IVA is removed from the credit report.

So as at 2012 I had a squeaky clean credit report, since then I have obtained mainstream credit cards, paid off in full every month without fail. I have zero debt and am a regular saver, a totally reformed character.

I appreciate that on the mortgage application if a question is asked 'Have you EVER been subject to bankruptcy, IVA etc then the answer is of course yes but...

...just browsing on the Halifax intermediary site to see what their criteria is and it says the following:

The Bankruptcy question should be answered as yes if you have had a bankruptcy/IVA or Debt Relief Order within the last 6 years OR still have an outstanding Bankruptcy Restriction Order.

Does anybody know if this six year period is from the start date of the IVA (as per the credit report six year timeframe) or six years from the end date ie Sept 2015 in my case?

I will be going through a broker in any case when the time comes but would just be interested to know the answer whilst househunting as finally got the deposit together to start looking this year!

Contemptuous

I believe the question would be posed to you as "have you ENTERED INTO and IVA etc.. Within the last 6 years", in which case could answer no.

maninthestreet

I would reply 'Yes' - you have had an IVA in the last six years.

Madbags

I had a Debt Relief Order which ended about 2 years ago. When we took out a mortgage with Nationwide the mortgage adviser on the phone said to answer no to the bankruptcy question.


I still had to provide a reason for adverse credit etc. which was all fine, DIP was accepted and we secured our mortgage before Christmas.


I know it's not the same as an IVA but it's closer to bankruptcy than an IVA in my opinion as debts were written off completely with no intention of paying them off.

Jhoney_2

If question is posed as per Halifax, the answer is yes.
If posed as example given by contemptuous, the answer is no.

I think they are two very different questions.

notmyrealusername

Thanks all

Jhoney wrote: »

If question is posed as per Halifax, the answer is yes.
If posed as example given by contemptuous, the answer is no.

I think they are two very different questions.

Good point, the 'guidance' quoted above from the Halifax intermediary site doesn't show how the actual Q was worded so I guess I wouldn't know until seeing the actual form.

kingstreet

The questions are;-

Has any applicant been in arrears in the last 6 years with any borrowing or ever had a property repossessed?

Has any applicant had a County Court Judgment (CCJ) or default registered against them or if self-employed against their business within the last 6 years?

Has any applicant been declared bankrupt, entered into an IVA or debt relief order within the last 6 years or still have an outstanding bankruptcy restriction order?

notmyrealusername

Thanks so much Kingstreet!

Do you agree that in my circumstances I can truthfully answer 'No' to that Q so hopefully I shouldn't be disadvantaged in any way by the past IVA?

Has any applicant been declared bankrupt, entered into an IVA or debt relief order within the last 6 years or still have an outstanding bankruptcy restriction order?

Madbags

It would seem that because you "entered into it" over 6 years ago I'd be leaning towards saying no. But like many have said that's just down to the wording.


I personally would say no to that question, but I'm not an expert, an adviser, a broker or anything but someone who has previously been in debt and recently secured a mortgage.


Either way it's not like they won't find out after a rigorous credit search.

notmyrealusername

Madbags wrote: »

It would seem that because you "entered into it" over 6 years ago I'd be leaning towards saying no. But like many have said that's just down to the wording.


I personally would say no to that question, but I'm not an expert, an adviser, a broker or anything but someone who has previously been in debt and recently secured a mortgage.


Either way it's not like they won't find out after a rigorous credit search.

I would only ever be 100% honest when answering Q's such as this but if I am able to legally not disclose the previous IVA I don't think they would ever discover it.

It has been off my credit report since 2012 as it can only be retained on there for 6 years from the start date.

Madbags

notmyrealusername wrote: »

I would only ever be 100% honest when answering Q's such as this but if I am able to legally not disclose the previous IVA I don't think they would ever discover it.

It has been off my credit report since 2012 as it can only be retained on there for 6 years from the start date.

Fair enough - I was under the impression that things like this would be removed from a credit file 6 years after the end date, not the start date.