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.