Bankruptcy

[raspberrystetson]

Can anyone advise?

My good friend has recently started dating someone who is bankrupt. He said it's not been s problem for him but looked him up on the bankruptcy register and he was made bankrupt in 2015. I thought it would have been erased by now?

She's quite vulnerable with young primary school aged kids. She has some savings which could allow her to put down a deposit on a small house and could just scrape by. . Currently she rents but ideally wants to get on the property ladder.

He doesn't seem to have issues with money at all. Plenty of cash, and has offered to help pay towards her rent. Which would be a huge help to her. He works and earns well and in the surface appears to be well off.

Would this be a red flag? I wonder what the future holds for them as a couple financially and i wonder if she should be worried about his past?

If he has plenty of money, why is he still bankrupt?

Why did he go bankrupt? If he eg gambled away all his money, I'd walk away.

This really. Many people go bankrupt because they work hard to start a business and for reasons out of their control, it goes pear shaped and they lose everything.

Others go bankrupt because they incur lots of credit card debt with no intention of paying it back.

Good point. Ill try and find out although i don't know if he will be truthful

Is it normal to still be on the register after 9 years?

Does it say what type of insolvency it is? There should be 3 letters on the row for his name.

It doesnt have any letters but does say discharge suspended indefinitely

What does that mean?

So usually, the bankruptcy order is discharged automatically. But if the person isn’t complying with the order, such as not providing requested information or not making the income payments (which is payments that need to be made for a few years to clear at least some of the debt), then the order won’t be discharged automatically.

Normally, you'll be discharged from bankruptcy after 12 months, on the first anniversary of the date the bankruptcy order was made.

if the trustee has reason to believe you have entered into the bankruptcy fraudulently, or if you have not fully cooperated with them, then your bankruptcy may be suspended indefinitely and extended longer than twelve months.

So it's been almost 10 years with no discharge

And he clearly has money (well cash)

But i don't think they could get a mortgage together or even rent jointly ?

He is not discharged so I think it’s highly unlikely.

There are specialist mortgage lenders for discharged bankrupts who may be able to help you buy a home. The downside is that you’ll probably need a much larger deposit and be charged a higher rate of interest.

I also worry that if he's earning well but not discharged after all this time. Is there possibility some illegal activity? Money laundering or tax evasion going on?

It's all a bit odd