Help please: Bankruptcy and saving my house

[ianvestor]

Interesting. Do lenders check the NPII as well as credit histories?

No idea! They get your permission (at least in the fine print) to check your credit history, so maybe there's also something in that same fine print mentioning NPII/facebook/best friend's buck's night checks also.

 

[Terryw]

I believe the lenders generally don't check the National Personal Insolvency Index ("NPII"). However, the application forms often ask the question about bankruptcy and if you answer "yes" they possibly then would. Not disclosing the information to the lender would be an offence.

This is a public database so anyone can do a search for a fee - no permission would be necessary.

 

[ProperTee]

Not quite total reversal... the bankruptcy is recorded in TWO places: Your credit file, and the "National Personal Insolvency Index":


That's half right. I think you are right about the NPI, but I can tell you without a doubt that it disappears from your credit file very soon after you are issued with an annullment certificate. I even put this to the test by applying for a credit card without specifying what limit I wanted and was issued with a $20k card within days.

What you might be confused with is allowing the bankruptcy to come to it's natural end in min 3 years. I am referring to a Section 73 proposal that is accepted by the creditors.

 

[ianvestor]

That's half right. I think you are right about the NPI, but I can tell you without a doubt that it disappears from your credit file very soon after you are issued with an annullment certificate.

That's pretty much what I said.

From my understanding anything that touches the NPII even for a nanosecond is there permanently... completely different from the ins and outs of your credit file.

 

[ProperTee]

That's pretty much what I said.

From my understanding anything that touches the NPII even for a nanosecond is there permanently... completely different from the ins and outs of your credit file.

Sorry, I misunderstood.

However, I think the question that is normally asked on loan applications is "are you an undischarged bankrupt", so no offence would be committed if you were to answer no. They will check your credit file, but I doubt they check the NPI, becasue if it's not on your credit file, this would in most cases mean that the bankruptcy is at least 3 years old and they're probably not interested in spending more money to check NPI.

If however, there are defaults on the file, well that's a different matter. One of the benefits of running a business under a company structure is that the defaults are recorded on the company credit file.

 

[Terryw]

I've just come across an interesting website re bankruptcy and working out ways to keep the house.

http://www.bankruptcyandhouses.com.au/

 

[TomW]

I've just come across an interesting website re bankruptcy and working out ways to keep the house.

http://www.bankruptcyandhouses.com.au/

I work in the insolvency field and the guy that runs that website (Fred Appleton) is regarded as an eccentric fool.

 

[Rolf Latham]

One of the benefits of running a business under a company structure is that the defaults are recorded on the company credit file.

xcept where personal guarantees are provided.........?

ta
rolf