DISCHARGED BANKRUPT MORTGAGE

As soon as you are discharged from bankruptcy you are free to apply for loans and credit, including mortgages, once again. Normally this will occur twelve months after you were made bankrupt.

How can we Help?

Our brokers specialise in arranging mortgages for individuals who have had serious credit problems. If you are a discharged bankrupt they can help you get a mortgage or home loan. They have access to some sympathetic specialist mortgage lenders who are prepared to consider applications from people in your situation.

Obviously this will depend on your current ability to repay but what happened in your past would not work against you in the way that it would if you were to apply to a mainstream lender, many of whom will still consider you bankrupt even after you have been discharged.

Note that the length of time since you were discharged from will determine how good a deal you can get as well as the size of deposit required by the lender. If you are an ex bankrupt and in the market for a mortgage then give us a call now.

What is Bankruptcy?

A Court can declare you bankrupt by issuing a bankruptcy order against you, but only after the court has been presented with a successful bankruptcy petition.

You can file your own bankruptcy petition or a creditor, who is seeking repayment of an unsecured debt, may file one against you. A petition can be presented against you even if you are not in the country.

If you want to reach a settlement with the creditor you should do this before the petition is due to be heard. Do not wait until afterwards, as it could prove very costly and may be hard to achieve.

Bankruptcy will last for a maximum period of 12 months after which you will be discharged.

Why Bankruptcy?

Bankruptcy is a direct result of a debt problem. A creditor can enforce it on you if you are unable to pay them and they see it as the only way to get some money off you. Alternatively, you may decide that declaring yourself bankrupt will help you resolve your debt problem so you can make a new start without debt.

When you are bankrupt in the UK your assets can be sold and some of your salary used to pay off your creditors. However, your creditors will not be able to pursue you for payment as soon as the bankruptcy order has been made against you. What’s more, when you are discharged the debts you once owed are cancelled and will be no more.

As a bankrupt you will still have to pay for your normal living expenses such as rent etc and make repayments on any loans or credit you arrange after becoming bankrupt. Only very small loans are likely to be available to you and you will have tell any potential creditor that you are bankrupt.

Bankruptcy is a very serious situation and should be considered as a last resort because your assets and valuable possessions will be taken from you and you could be barred from taking certain jobs. There are alternatives available to you and you should really consider them if at all possible.

Always talk to your creditors at the earliest opportunity and try to come to an arrangement that suits you both. Do not just ignore them but try and start a discussion as soon as you know you have problem. In fact as soon as you know that you might get into difficulties you should contact your creditor to see if there is anything that can be done to help you.