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Alex J.
Alex J., Solicitor
Category: Law
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Experience:  Solicitors 2 years plus PQE
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HOW LONG DO YOU HAVE TO DECLARE BANKRUPCY IS THEIR A TIME LIMIT

Resolved Question:

HOW LONG DO YOU HAVE TO DECLARE BANKRUPCY IS THEIR A TIME LIMIT WHEN U DO NOT HAVE TO DECLARE IT.
Submitted: 3 years ago.
Category: Law
Expert:  Alex J. replied 3 years ago.
Hi,

Thank you for your question and welcome.

My name is XXXXX XXXXX I will assist you.

There is no time limit as to when you can declare bankruptcy. If you are insolvent in accordance with S.123 of the Insolvency Act 1986 then you can file for your own bankruptcy. The definition of insolvency is being "unable to pay your debts as they fall due". Creditors are protected against unlawful disposal of assets by bankrupts by provisions of the insolvency act. For example if you transfer your house to your wife's name and then go bankrupt within two years this transaction could be challenged and unwound as a transaction at an undervalue (See. S.339 of the Insolvency Act).

For further information S.272 explains the grounds for a debtors petition.

Can I be of any further assistance?

Kind regards

AJ

Customer: replied 3 years ago.


Sorry i mean once you have been bankrupt how long does it stay on your record and how long do u have to declare this for thanks ann

Customer: replied 3 years ago.
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Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

Firstly there is no legal obligation to declare it per say. However if you are directly asked the question "have you ever been bankrupt" - by not answering the question truthfully you could be in breach of disclosure obligations for certain matters like for example if you were taking a role as a trustee of a charity.

Secondly in theory it will stay on your credit record and effect your credit score for 6 years from the date of discharge.

Can I be of any further assistance?

Kind regards

AJ
Customer: replied 3 years ago.


Thanks i paid an amout off my debt which they accepted when i sold my house and its over thirteen years do i still have to answere that i was bankrupt if i am going to go on my partners mortgage thanks

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

If the mortgage application is asking you whether you have "ever been bankrupt" then you yes you do have to declare it otherwise you are potentially providing misleading information.

Bankruptcy is a matter of public record and while the bankruptcy may not appear on your credit file after 6 years, there is a record of it and if the bank wanted to find out they could.

To qualify this if the bank ever asked you "Have you recently been made bankrupt"? Then you could answer this question as no because recent really only refers to the last 6 years.

If you respond no to "have you ever been made bankrupt" and the bank find out you have been made bankrupt, it may cause even more problems, to name one you could be rejected for a mortgage for providing mis leading information, which is another fact you would then have to disclose if you applied for another mortgage.

Can I be of any further assistance?

Kind regards

AJ
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