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When is my name removed from the Insolvency Register?

When is my name removed from the Insolvency Register?

Your bankruptcy is completely removed from the Insolvency Register 15 months from the date you entered into bankruptcy or 3 months after discharge. The Insolvency Register (Google it) is a public record of all those persons currently involved in Debt Relief Orders, Individual Voluntary Arrangements and Bankruptcies i.e. court sanctioned arrangements.

You are automatically discharged after 12 months and in some cases people are even discharged before the end of the 12 month period.

For those that for whatever reason have entered bankruptcy either voluntarily or involuntarily and have failed to cooperate with the Insolvency Service or trustee then there is a strong chance that they will have what is known as a bankruptcy restriction order against them. This can happen sometimes for innocent reasons such as moving home and not receiving letters from the Insolvency service. Or simply because there is sensitive information that is being requested that people either really don’t wan to answer or haven’t got or don’t know how to get information that is being requested. there is also the people who are just afraid and go into their shell and cant face what needs to be dealt with. Or they simply couldn’t find someone to assist them.

These include persons whose circumstances are unlikely to change viz. pensioners, people on DLA, etc. It is important that you obtain a certificate of discharge when you have completed the 12 month period and submit copies to the three main credit reference agencies, as there can be delays before information is updated. There is a charge for the discharge certificate, but it’s worth paying.

Bankruptcy UK has been helping people with insolvency since 1998 and will guide you through the process step by step. We will avoid jargon and confirm all discussions by email within 30 minutes. Call us for a chat about your circumstances on 01425 600129.

How can I get a bankruptcy discharge certificate?

I filed for Bankruptcy in 2007, but never received a Discharge Notice. How do I apply for one please? I still have the original papers, because I was told I would have to wait 7 years to apply for a discharge, but is this no longer the case?

You would have been automatically discharged after 12 months and removed from the Insolvency Register 3 months later, but if you are looking for an actual discharge certificate you will need to pay £70 for one at the county court where you went bankrupt – it is not free despite the court fees you paid. We don’t think there is any point in doing this now, but for the benefit of other readers, it is worth obtaining the discharge certificate and sending copies to all of the credit reference agencies. The agencies are slow to update credit files and we’ve heard of cases where people are still being listed as bankrupt two years after discharge. Needless to say, this does little to help those trying to improve their credit ratings.

Bankruptcy UK offers a full bankruptcy administration service, including dealing with creditors, completing the all important Income and Expenditure, professional completion of the relevant paperwork and bankruptcy help at all levels. Call us on 01425 600129 or 0800 5977 977 for a chat about your circumstances.

Could I be discharged early from Bankruptcy?

People are usually discharged from bankruptcy after 12 months, but we have known people to be discharged after just four months and many more after 6 – 7 months. Early discharge is entirely at the discretion of the Official Receiver, but this usually takes place when a person’s circumstances are unlikely to change e.g. someone who is on pension, long term unemployed or receiving disability.

Bankruptcy UK offers bankruptcy help across the board and will submit your application online. Court appearances for bankruptcy are no longer required. Feel free to call us on 01425 600129 for a chat about your circumstances.

Will my credit rating ever recover if I go bankrupt?

Yes it will and faster than you think, as Mortgage Brokers are now saying they can arrange mortgages for those who have been discharged for three years provided there has been no trouble in between. We guide a lot of people through bankruptcy and have heard of many cases where people are buying furniture on finance as soon as 18 months after discharge, so there’s plenty of hope. To aid recovery, it’s important that you apply for one or two of the ‘credit repair’ credit cards (Capital One, Vanquis, Aqua, etc.) as soon as you are discharged and make regular small purchases and payments in full.

The reason for this is that payments record as a ‘O’ on your credit file i.e. a successful payment and a string of zeroes next to any financial transaction racks up the points on your credit score. Likewise, internet providers such as Virginmedia and BT also have contracts in place which record zeroes for successful payments. People think that banks will never take a chance on former bankrupts, but we beg to differ. Former bankrupts are completely debt free and are the customers of the future, something we suspect the banks – or at least the smarter ones – are cottoning on to.

Bankruptcy UK offers a full bankruptcy administration service, including dealing with creditors, completing the all important Income and Expenditure, professional completion of the relevant paperwork and bankruptcy help at all levels. Call us on 01425 600129 or 0800 5977 977 for a chat about your circumstances.

How long does bankruptcy stay on my credit report?

Many people get confused between what happens to their credit report and how long they remain on the Insolvency Register, so let’s look at that first. All bad credit, including CCJs, late payments, returned direct debits and bankruptcies reflects on your credit report for six years, which underlines the importance of keeping on top of things. The Insolvency Register on the other hand, is a record of all formal debt arrangements (IVAs, DROs and bankruptcies) and remains in the public domain for 15 months. When a record falls off the Insolvency Register, it does not directly affect your credit record; only time and the correct conducting of your accounts will solve those issues.

Your credit report will obviously be badly affected by bankruptcy, but from a lender’s point of view it is no worse than a history of late / missed payments and CCJs. In fact, we have heard of numerous cases where people have credit scores of 800 plus barely two years after discharge and mortgage brokers make no secret of the fact that you can now get a mortgage three years after discharge. This would definitely not happen if you struggled along in a Debt Management Plan or IVA for years on end. The trick is to acquire a ‘credit impaired’ credit card as soon as possible and make regular payments on small purchases. The reason for this is that every successful payment records a ‘zero’ next to the creditor’s name (and ‘ones’ for missed payments) and these zeroes are good news for credit ratings.

Bankruptcy UK offers a full bankruptcy administration service and will submit your bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for bankruptcy help on 01425 600129 or for an informal chat about your circumstances.

If I co-signed for a debt am I still liable if my partner goes bankrupt?

Yes you are as loans are taken ‘jointly and severally’ which means both parties are liable for the full amount and not half each. In an ideal world, both parties would file for bankruptcy simultaneously thus avoiding this, but it rarely happens that way. Having said that, you might be surprised at how few lenders actually enforce their rights. It seems that receiving a letter from the Insolvency Service stops everything dead in its tracks. Something that will not be avoided, however, is the negative impact it will have on the credit files of both parties concerned.

Bankruptcy UK offers a full bankruptcy administration service and will submit your bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for bankruptcy help on 01425 600129 or for an informal chat about your circumstances.

What does a ‘Default’ on my credit file mean?

Accounts generally go into default once three missed payments are recorded on a credit file. If you request a copy of your credit file, you will notice a row of zeroes and ones running in a line next to the name of the creditor. Each zero means a successful monthly payment, while the ones mean a missed payment.

Needless to say, a string of ones is bad news for your credit rating and every effort should be made to make up the arrears. Fortunately, the lenders regularly update our credit files with details of payments, but it might still be an idea to get some type of acknowledgement from a lender once the arrears are made up and submit this to Experian and Equifax.

Bankruptcy UK offers a full bankruptcy administration service and will submit your bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for bankruptcy help on 01425 600129 or for an informal chat about your circumstances.

What exactly does ‘Statute Barred Debt’ mean?

Statute Barred Debt is debt that might have become unenforceable if a creditor has not gone to court or contacted you within the time limit set out in the Limitations Act 1980 i.e. in England and Wales the time limit is six years. We need to point out, however, that while the time limit for unsecured debt is six years, it increases to 12 years for debt associated with mortgage shortfalls.

The key points for deciding whether or not unsecured debt is statute barred are:

  • You haven’t made a payment to the debt for more than six years
  • You haven’t had any contact from the creditor during this time
  • The creditor has not applied to a court for a CCJ
  • Even if you have had some contact but have not acknowledged the debt in writing, it is still statute barred
  • Please note, if the debt has been sold the clock does not reset to the date of the new acquisition, it remains the original date

However, don’t believe for a minute that this will stop debt collectors which have bought the debt from trying it on, knowing full well that few people know their rights. The best thing to do is to simply ignore the calls / letters. It is very risky challenging the debt collector in writing as you might be unwittingly acknowledging the debt. Although unlikely, if you were to receive CCJ documentation from Northampton County Court for a CCJ, it should be challenged immediately if it falls into the above criteria.

Bankruptcy UK offers a full bankruptcy administration service and will submit your bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for bankruptcy help on 01425 600129 or for an informal chat about your circumstances.

 

Can I get a mortgage after bankruptcy?

Believe it or not – especially in light of the credit crunch – mortgage brokers tell us that mortgages are now possible provided you have been discharged for three years and have had no problems in the interim. Clearly, the lenders will look at each case very closely and probably insist on a substantial deposit, but at least there is hope.

This is quite extraordinary given there is no chance of getting a mortgage if you’ve been stuck in an IVA or Debt Management for several years. From a lender’s point of view, the reasoning is quite simple i.e. people who have entered into bankruptcy have a) probably learned a lesson and b) more importantly, have no debt!

If you are considering bankruptcy, we will help you throughout the process and submit your application online. Court appearances for bankruptcy are no longer required. Feel free to call us for a chat or for bankruptcy help on 01425 600129.

Can I have a bank account when bankrupt?

Yes, but certain banks are more approachable than others. Barclays has a basic ‘cash’ bank account which offers a chip and pin card so you can at least pay for things in a shop, while the Cooperative offers a ‘Cashminder’ current account which again has a chip and pin card, though there is a monthly charge associated with this account. It would be a good idea to get one of the ‘credit repair’ credit cards as soon as possible (Lumus / Capital One), as regular small purchases and payments will help restore your credit rating over a period of time.

Bankruptcy UK offers bankruptcy help across the board, including dealing with creditors like HMRC, completing the all-important Income and Expenditure and professional submission of the application online. Call us on 01425 600129 or 0800 5977 977 for a chat about your circumstances.

 

 

Bankruptcy UK

Bankruptcy UK