Buying A House Where Seller Had Previous Bankruptcy - what does this mean for me?

watchingcountdown

I am in the process of buying a property but have found out that the seller went bankrupt about 10 years ago, 1 year after purchasing the house (brand new property when she bought it).
Their solicitor is in the process of getting a certificate of discharge to prove the bankruptcy is discharged and to try to get the restriction removed from the title deeds. Discharge from bankruptcy happens automatically (as far as I know) after 6-7 yrs.
I spoke to land registry and they said a cert of discharge is not enough to get the restriction off the deeds and that the restriction would remain on the deeds unless the seller had paid the debts from the bankruptcy off and submitted a dismissal petition to court.
Land reg said they could still sell the property with the restriction on it. The bankruptcy would remain on the deeds against her name, not mine.
The woman at land registry said she'd be very wary of purchasing a property with a bankruptcy on it like this. I asked her what problems she could forsee but she didn't know and recommended speaking to my solicitor who should know, but he has been on leave for the past 2 and a half weeks and I don't think he has experience with former bankrupts because he has known about the bankruptcy for a good few weeks (before going on leave) and didn't say anything about what it could mean for us. I highly doubt the debts have been cleared as no-one ever clears debts after being made bankrupt do they?!
Has anyone had any experience of this? Can anyone forsee any problems the bankruptcy might cause? Might my insurance premiums go up or might I get rejected for credit cards?

AdrianC

No, no problems at all.


The bankruptcy is nothing to do with the property.
The debts are nothing to do with the property.
The vendor's solicitor has a duty to disperse the sale receipts in the appropriate way - which may be to creditors. Not your problem.

Slithery

It means absolutely nothing to you.

watchingcountdown

Thanks, I'm just wary after Land Registry woman said to be careful.
When I apply for a credit card not long after moving in the credit card company won't know that ex-bankrupt is not part of my household though.
I just think there must be some problems that will come up. When I come to sell the property (not that I intend to) it may cause an issue? Or is it only causing an issue now because the seller IS the ex-bankrupt?

silvercar

Or is it only causing an issue now because the seller IS the ex-bankrupt?

This is the issue. The solicitor handling the sale for the seller needs to make sure that there isn't a charge on the property as a result of the bankruptcy. Shouldn't be an issue for you in buying. credit searches are registered against people not addresses.

AdrianC

Even if they were part of your household, it's irrelevant - because you aren't them.

It's only causing an issue because you think it should cause an issue.