solicitor bankruptcy search.

[FTB2012]

Hi All

I was wondering if someone can help me

I'm currently going through a mortgage application. All credit checks have been done & everything went fine. It's been to the underwriters and it's looking good for an offer. My question is that the solicitor will carry out a bankruptcy search near the end. Will my IVA show up on this? I started the IVA Jan 2006 nearly 7 years ago & it was completed in Jan 2011

All 3 CRA are clean & i'm not on the insolvency register.

I now worried sick as this could affect me getting the mortgage at the last stage

Thanks in advance

[MelanieGiles]

HI FTB2012 and welcome to the forum

If you did an IVA, then you were not bankrupt and therefore you should not appear on a bankruptcy search. Did the mortgage application ask you to confirm any details about your previous IVA as part of the process?

[FTB2012]

The lady asked me was I ever BR and I said no.

Now looking at the application it asks was I ever in the voluntary agreement in the past 7 years. the box was also ticked no. was never asked this question. I sailed throught the Application Credit Checks etc.. I'm 4 weeks away from the 7 years & I don't know what to do for the best. If i'd seen this before i would have applied after the 4th of Jan & that would be after 7 years

I also thought i'd started the IVA in Nov 2005 until I checked my paperwork & it didn't start Jan 2006

[MelanieGiles]

So your IVA only concluded in January 2011? Then it seems you have answered the question on the form incorrectly as you have had an IVA well into that 7 year period. I would discuss this with the mortgage broker acting for you to ensure that you don't get any nasty suprises at the time you are expecting to complete the purchase.

[lem]

I think the 7 years will include the time you were in the IVA til it finishing not the date it started so in essence it will be Jan 2018 before you could honestly state you had not been in an IVA in the previous 7 years.

I do think you should come clean now to be honest as it's classed as fraud if the lender finds out

[FTB2012]

On the form it says

In the last 7 years have you, personally or as a company
director, been bankrupt, insolvent or entered into any
arrangement with your creditors?

wouldn't that suggest if I apply in Jan 2013 then it's over 7 years since i entered the IVA

[MelanieGiles]

That is possible - I guess only the mortgage company or your broker could confirm that. In an IVA you are insolvent until the IVA is successfully concluded.

[FTB2012]

now reading it again

If I have been insolvent for the 5 years of my IVA, so I'm wrong in thinking 7 years from the start.

I have another 5 years to go

[MelanieGiles]

You are not insolvent once your IVA has been successfully concluded. So you are not now, but you were until January 2011.

[TheArtist]

Agreed lem. FTB, this is clearly an oversight on your part. I would explain this to your broker. The rug may be pulled from under you with regards to the mortgage offer. But in any event your solvent now and a discharged IVAer and there will be a product out there. Maybe a bit dearer, but your conscience will be a hell of a lot clearer