Author Topic: Bankruptcy length  (Read 1863 times)

dollydimples

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Bankruptcy length
« on: Feb 15, 2012, 09:48:12 AM »
Could anyone please tell me how long after bankruptcy is it that you can get ur credit refs totally wiped ??
Thankyou
 

James Falla

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Re: Bankruptcy length
« Reply #1 on: Feb 15, 2012, 06:37:29 PM »
Hi there dollydimples
 
Do you mean how long the record of you having gone bankrupt will remain on your credit file? This is 6 years from the date you were declared bankrupt. After 6 years the record of the bankrptcy comes off your credit file. However you should also check your credit rating to see if any of your creditors issued a default notice after the date of your bankruptcy. If so you need to contact them and get them to change the date of the defualt notice to the date of your bankruptcy. They will have to contact the credit agencies to do this which they are obliged to do. Default notices also remain on your credit file for 6 years and so could stay on your file after the record or the bankruptcy has been taken off if you are not careful.
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Simon Wyllie

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Re: Bankruptcy length
« Reply #2 on: Feb 21, 2012, 02:55:41 PM »
Hi dollydimples.
You should also bear in mind that some lenders, especially mortgage lenders, may ask if you have ever been bankrupt in their loan application forms. How they use that information is then a matter for them.
Another thing to consider if that your credit report will not necessarily be wiped. Your actions during and after the bankruptcy may also contribute to your credit standing.
For example, you may continue to be subject to credit reporting for things like a mobile phone contract if you retain one. A good payment record will help you to build up your credit rating. A bad payment record will lead to further problems for an extended period.
 

James Falla

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Re: Bankruptcy length
« Reply #3 on: Feb 24, 2012, 06:18:45 PM »
To follow up on your point about getting a mortgage after bankruptcy Simon, I was speaking to a mortgage broker friend of mine recently and he confirmed that some lenders will ask whether or not an applicant has been bankrupt in the past. However he suggested that there are many who do not and after the 6 year period has finished and the bankruptcy no longer shows on the credit file, there is not much to worry about. The more real and pressing problem for most people in this position is actually being able to get together the required mortgage deposit. 
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Simon Wyllie

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Re: Bankruptcy length
« Reply #4 on: Feb 28, 2012, 01:15:33 PM »
That's a fair point James.
Dealing with unaffordable debts certainly puts people in a better position, in the future, to work on getting a mortgage deposit together.

James Falla

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Re: Bankruptcy length
« Reply #5 on: Apr 18, 2012, 04:54:03 PM »
I agree 100% with that Simon. There seem to be a lot of people who get hung up on the issue of their credit rating and it prevents them from taking action to actually solve their debt problem. In my opinion becoming debt free is pretty much the best first step to repairing your credit rating and of course saving for the future. You are in a much better position to save if you have no debt to pay. :)
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