Bankruptcy badly affects your credit record for six years.
This article looks at what should happen to your credit record when you are discharged from bankruptcy after a year. Even if you have no intention of getting into debt again, a good credit score makes it easier to rent a house, get a mobile contract and it’s essential if you want a mortgage.
Contents
First check what your credit records show
There are three different Credit Reference Agencies (CRAs) in Britain.
To do a thorough job of cleaning up your credit records, you need to look at all three of them as many lenders only report to one CRA. If you only check one, you may miss a problem which is only showing on a different CRA.
It is simplest to get the Statutory reports from each of the three CRAs, there is no charge for this, see How to check all your credit records for free.
How bankruptcy should be recorded
The key document from SCOR/ICO
The Steering Committee on Reciprocity (SCOR) – the group of lenders that decide how credit records should be updated – and the Information Commissioners Office (ICO) published Principles for the Reporting of Arrears, Arrangements and Defaults at Credit Reference Agencies in July 2016.
This includes details of what should happen when you go bankrupt and when you are discharged from bankruptcy. Here I call it the SCOR/ICO paper for short.
After you go bankrupt – check your debts have the right default date
Bankruptcy will be shown in the Public Record section of your credit record. It can sometimes take a few weeks for the entry to appear, but when it does, the date on it will be the date your bankruptcy started.
If it hasn’t already been marked as defaulted when you go bankrupt, an unsecured debt should be marked as defaulted with a default date which is your bankruptcy start date. There will be no change for any debts which have already been marked as defaulted or for CCJs.
Secured debts such as mortgages
The situation with a mortgage (or a secured loan) is slightly more complicated.
If you carry on paying your mortgage after going bankrupt and there are no arrears a default should not be recorded.
When you had stopped paying the mortgage before bankruptcy or when you go bankrupt, a default should be recorded with the bankruptcy start date. This is stated in the SCOR/ICO paper which says:
“The default date must be consistent with that of the CCJ/bankruptcy or IVA; therefore a default should be filed as being no later than the date of the insolvency order. [page 7]”
If you were still paying the mortgage after bankruptcy but later stopped, the default date should still be the date you went bankrupt.
When you are discharged
The Insolvency Service will notify the CRAs who will add your discharge to the Public Record section. This doesn’t remove the bankruptcy marker.
The debts included in your bankruptcy should be marked by the creditors as partially settled with zero owing on the date of discharge. This is what the SCOR/ICO paper says should happen:
Your record should be closed and marked as partially settled if…. your account is included in an insolvency such as a bankruptcy or IVA which is discharged/completed and less than the full amount is paid. [page 8].
Six years after you went bankrupt
Everything should vanish and your credit rating will improve significantly!
The bankruptcy marker will drop off your credit record. And all the debts in your bankruptcy will drop off if they had a default date on or before your bankruptcy, as they should have had. CCJs also drop off after 6 years.
The only reason why a debt in your bankruptcy doesn’t drop off when the bankruptcy goes is if the default date isn’t right.
Correcting problems
1) Creditor doesn’t use the right default date
Ask the creditor to correct the record. Don’t bother to complain to Experian, Equifax etc about this – they only report what the creditors tell them.
Don’t do this on the phone – you may be talking to staff who don’t understand what you are saying. Instead complain to the creditor in writing – email is best as you keep a record of it. Put COMPLAINT ABOUT CREDIT RECORD as the subject.
For all debts except for mortgage shortfalls, use this template:
I [went bankrupt at xxxxx County Court / had my bankruptcy application approved] on dd/mm/yyyy. I attach a copy of my Bankruptcy Order.
I am writing to ask you to correct my credit file for the above debt. At the moment [there is no default date shown / the default date is shown as dd/mm/yyyy]. This is incorrect and a breach of the SCOR/ICO 2016 guidelines and the Data Protection Act 1998. There should be a default date not later than the start date of my bankruptcy.
Please correct this entry within 28 days or supply me with a written reason why you will not do so.
Recheck your credit file after say six weeks. If it has not been corrected, put in a complaint to the Information Commissioner’s Office here. Attach copies of your email or letter to the creditor and any reply from the creditor.
2) Problems with mortgage debts
It can be harder to get mortgage lenders to correct a date. If the lender has recorded the default date as being the date your house was repossessed not the date of your bankruptcy, you should include in your letter the quote from the SCOR/ICO 2016 document quoted above.
However it seems that sometimes the ICO is failing to apply its own guidelines with this type of situation.
Here is a case where the Financial Ombudsman has upheld the complaint, applying the rules about dates as they are described in this article: Platform mortgage case. So I suggest that if the lender doesn’t correct your record when asked, you should complain to the Financial Ombudsman, not to the ICO.
3) Debt not marked as satisfied after discharge
The creditor doesn’t have to mark the debt as fully settled/satisfied so there is no point in complaining if the debt has been marked as partially settled/satisfied.
But if your debts are still showing as having a balance owing, this needs to be sorted. Ideally you need to get a Certificate of Discharge from the court where you went bankrupt (this costs £70 and £10 for additional copies) however many lenders will accept a copy of the free letter from the official receiver that you may have received. Then send the following letter to the data controller for the creditor:
I [went bankrupt at xxxxx County Court / had my bankruptcy approved] on dd/mm/yyyy. I was discharged on dd/mm/yyyy. I attach a copy of my [Certificate of Discharge/letter of discharge].
I am writing to ask you to correct my credit file for the above debt. The SCOR/ICO guidelines state that my credit file should show the debt was partially settled on the date of my discharge.
Please correct this entry within 28 days or supply me with a written reason why you will not do so.
Again, complain to the ICO/FCA as above if the entry is not corrected.
NB There is one exception here. There is no ‘partially settled’ status for a CCJ and the court only has to mark a CCJ as satisfied if you have paid it in full, which you haven’t. So any CCJs will continue to show as unsatisfied.
Is it worth doing this?
It is definitely worth correcting the dates of default unless they are just a few weeks late. If these are months late, this delays the time until your credit file is clean as these defaults will still remain after your bankruptcy marker has gone.
Marking your debts as satisfied after discharge is less important. Even if you get this amended, applications for credit, a normal bank account or a mortgage may well be refused whilst bankruptcy is still on your credit file. If you are close to the six-year drop-off, then you could decide to wait and let that clean everything up.
However, getting a debt marked as satisfied will improve your credit rating slightly, which may be enough for you to be approved for a ‘bad credit’ card, see below. It also prevents the debt being ‘sold on’ to another Debt Collector, which is annoying as you have to correspond with yet another person and send them details of your bankruptcy.
Getting positive markers on your credit file
In addition to cleaning out the bad stuff from your credit history, you want to get new, positive credit marks after you are discharged. First make sure you are on the electoral roll, that your address etc are correct on your record, that your bankruptcy discharge is shown and start the clean-up process above. This may take several months to complete if you have to go to the ICO.
Then you have two options.
Get a “bad credit card”
You can apply for either a bad credit card such as Vanquis, Aqua or Luma. Vanquis is owned by Provident, Luma is owned by Capital One – if you have had debts to either of these firms included in your bankruptcy, I suggest you apply a different one to maximise your chance of being accepted.
If you are refused, double-check your credit file really is clean with all three credit reference agencies and wait six months or so, then apply to a different card.
This sort of credit card is dangerous. They are aimed at people with very bad credit and they charge a very high rate of interest. This doesn’t matter if you use the card every month and repay it in full every month, so you never pay interest.
Your credit rating will not improve faster if you leave a balance on this card and pay interest. The best thing for your credit rating is to repay it in full each month.
If you find your balance is creeping up because you are not clearing it in full, stop spending on the card until it is cleared and have a re-think about budgeting.
Start saving with LOQBOX
This is a new product where you make regular savings for 12 months but this looks like a loan – so making the savings shows as loan repayment, improving your credit record. At the end of 12 months you have a nest egg saved up and a credit score that is starting to improve. See How does LOQBOX work for details.
This all takes time
If you were expecting discharge from bankruptcy to make an immediate improvement to your credit score, it usually doesn’t… There isn’t a way to speed this up. while the bankruptcy marker and the defaulted debts in the bankruptcy are still on your credit record, your credit score is never going to get to Fair.
The template letters to your creditors here are very likely to work. If they don’t, putting in a complaint to the ICO is the best way to repair your credit.
Never pay any firms offering a ‘repair your credit’ service because either they don’t work at all or will be no better than doing what is described here.
This article is kept updated.
Look out for problems with “bad credit” cards
Amigo – not a good way to rebuild a credit score
How does discharge from bankruptcy work?
Raja says
Dear Sir/
Will bankruptcy effect on my taxi license? And if i go for bankruptcy and after 1 week i have to go abord in emergency can i go?
Sara (Debt Camel) says
Taxi license – on your application were you ever asked if you had been bankrupt or insolvent? Or was a credit check done? If No and No then you are probably ok, but talk to Business Debtline about this https://www.businessdebtline.org/. The OR can’t make you stay in the country, but if you go abroad you still need to cooperate with the OR.
Raja says
Hi Sara Thank you for your replay no i don’t think they asked for bankruptcy on application form. And they do not check credit file but they asked for CRB
Andy says
I am just after some advice regarding an IVA which I was in and failed in 2011, I initially agreed a repayment plan of £450 a month for 5 years with Payplan in 2009 and kept up to date with regular payments. in 2011 I agreed a 3 month break with them as things were getting on top off me like rent arrears and car repairs. Payplan actually offered me this 3 month break which I gladly agreed to, only to find that they then started pestering me when a new case manager took over my agreement and told me I was behind with payments, she was very bossy and wasn’t interested in the agreed break, I was urged to catch up on missed payments forcing me to give them my whole months salary in August 2011 and they then discharged me when I missed a payment in September. This has always bugged me as I paid them around £10,000 and only a small portion of this went to my creditors. Do you think I would get any compensation if I complained to them.
Sara (Debt Camel) says
I very much doubt it – this is way too long after the event to complain.
Rebecca F says
Hello. My husband was discharged from bankruptcy in November 2011. I had to buy the interest in our joint property and restrictions from the Land Registry (B178) in October 2010.
How do I go about a) getting my husband back onto the property and b) restrictions lifted on the land registry. Do I need a letter to confirm the discharge?
Many thanks.
Sara (Debt Camel) says
Do you have a mortgage?
Are you sure the restrictions are still on the property?
Rebecca F says
Yes we do and have never deferred on payments.
I have no idea. I don’t know if it automatically gets taken off. This is one of my questions.
Sara (Debt Camel) says
Check the Land Registry entry for your property: https://www.gov.uk/search-property-information-land-registry.
My guess is that the restriction has been removed, your husband’s name is still on the deeds and the mortgage. In which case you don’t need to do anything :)
josie says
Hi Sara,
Thought you might like to know that following an entry for an old debt appearing on my credit report . I rang Link Financial who think I owe them money. It turns out that Co operative credit card have passed them a debt that was settled following my bankruptcy 3 years ago. They now agree that I don’t owe them any money and advised that I am not the only person this has happened. so pleased I have regularly been checking my credit reports. Thanks for your excellent site.
Antony says
I had a debt relief order that ended in August 2017. The debts that were held by Lowell are still showing on credit report . All other debts now say 0 balance. Is this normal?
Sara (Debt Camel) says
Hi Antony – it’s not right. See this article which looks at post-DRO credit records: https://debtcamel.co.uk/repair-credit-record-dro/ and has the template letter you need.
Adam says
Hi Sara. Great site! Really useful information that I’ve been looking for. I just wanted to confirm – i have 3 free credit agency reports – Clearscore (Equifax), Noddle (Callcredit) and Moneysavingexpert (Experian). It appears they all get the reports from the 3 major agencies, so I don’t need to sign up directly with them and pay as well to get the credit reports, do I? My other question: I was discharged from bankruptcy in May 2013, it appears on 2 of the reports, but not on the Clearscore one. 5 of my credit card accounts that were part of the bankruptcy show balance, but show last payment around the time of the bankruptcy (one a bit later of July 2012). On Clearscore they show as closed accounts with balance, Noddle show them as open accounts with default dates in 2012. Moneysavingexpert shows them as default accounts with the detail ‘account settled’. Do I need to be concerned with all of these showing the same info, but in a slightly different way? Or is this quite normal, and it appears they should fall off my report around May 2018? Thanks so much in advance and sorry for the long questions!
Sara (Debt Camel) says
“I don’t need to sign up directly with them and pay as well to get the credit reports, do I?” No need to do that.
People are often amazed at how messy and different their credit reports are! If all the debts in your bankruptcy have default dates athat are before or on the date you went bankrupt, then as you say they will all go in May next year.
At this point it hardly seems worth trying to get them all to have zero balances. In theory that makes it easier to get a bad credit card at the moment, but it will take you a couple of months to do it, so is it really worth the hassle?
Adam says
Thanks for the really quick response. Strangely one of the accounts has dates between late June and July 2012 on the various reports, even though the bankruptcy was in May. So should i just assume that one will go a bit later then because of that?
I agree there’s no real need to get the zero balances after this amount of time now- i was more concerned that they were showing in a way that they wouldn’t be removed, but from what you’re saying, apart from the one that has dates after the discharge, the rest will disappear.
Sara (Debt Camel) says
Well it’s up to you if you think it’s worth getting the debt with the wrong date corrected. It’s only one letter so if it was me I probably would try!
Adam says
That’s enough to convince me. Thanks again!
Toni says
I’m wanting to clear my bankruptcy early from my credit score. I have 1 year left but am looking into option to get this removed early . Is this possible if so how can I do this
Sara (Debt Camel) says
The only way to get the bankruptcy marker removed early is to have your bankruptcy annulled. This will require you to pay all your bankruptcy debts in full and also the bankruptcy expenses which can be very high. If you have sufficient money for this, I suggest you consult a solicitor who specialises in insolvency.
Anyone offering a “bankruptcy removal service” may well be a scam.
Sue A says
I went bankrupt on 06/06/2012 and was discharged a year later . Date of order 06/06/2012. Discharge date 06/06/2013
My noddle report has the the debts that were part of the bankruptcy still listed they appear as defaults.
My issue is from one with O2 and two from Lloyds they were all included in the bankruptcy and listed. They are still showing a default balance which is incorrect they should be 0. Lloyds Bank (Was Lloyds Tsb) £ 163 28/02/2018 Default. Account type Current Account. Account start date 29/07/1988. Date of default 06/08/2012. Default balance £ 162.
O2 Uk Limited. £ 269. 01/03/2018 Default. Account start date 13/12/2010. Repayment frequency Monthly. Date of default 20/10/2012
Default balance £ 269.
Lloyds Bank (Was Lloyds Tsb) £ 4,384 28/02/2018 Default. Account type Unsecured Loan. Account start date 01/07/2010
Opening balance £ 6,173. Repayment frequency Monthly. Date of default 29/06/2012. Default balance £ 4,383.
Halfway through the bankruptcy which was a total of 16,500 Lloyds made an additional PPI payout of £8900 into the bankruptcy.
Why are these still listed as default balances, they should be 0 like the others, they were all included in my bankruptcy and will they all drop off this year. I rang Lloyds two years ago and they said the money was not owed but the default would remain on the credit file for the six years. Please explain why they are still listing the loan as defaulted.
Sara (Debt Camel) says
“Please explain why they are still listing the loan as defaulted.” Because they are being too lazy to look at what you are saying and correct the credit records. Send them the letter in the post above and take the complaint to the Ombudsman if they don’t sort it out.
But the debts will drop off your record in 6 August, 20 September, and 29 June this year, so you may decide you don’t care that much.
John R says
Does my bankruptcy come off my credit score 6 years after the court date, where I was declared bankrupt, or 6 years after the date satisfied, which is a year after the court date.
Many Thanks
Sara (Debt Camel) says
After the court date.
Hayley says
I have virtually the same problem. I was declared bankrupt in 2015 and discharged a year later but my credit report still shows my debts as defaulted and the accounts still open. Do I contact the insolvency service, their appointed solicitors or the companies I have the debts with to address this? Can you also advise roughly what I need to tell them. Thank you.
Sara (Debt Camel) says
Your debts should have been marked as defaulted at the start of your bankruptcy and when you were discharged in 2016, they should have been marked as settled or partially settled, with zero owing. That was more than a year ago, plenty of time for them to have updated your credit record but they haven’t.
You should contact your creditors, using the template letter in the article above.
Hayley says
That’s really helpful, thank you for the quick response.
Nicola says
Hi Sara
With GDPR coming into action in May this year, do the templates above still apply as they reference the data protection act? I am having difficulty with woolwich (part of barclays) still showing I have a balance on a mortgage which was part of my bankruptcy in 2012. I challenged them 3 years ago on this, the receiver liaised with them on my behalf to reiterate it was part of my bankruptcy (it was the only reason for it, which is the most annoying part)yet they have still saying they have never received any correspondence from the receiver. It’s like the saddest part of my life that I can’t move on from :(
Sara (Debt Camel) says
Yes the templates are still fine. Complain again and take it to the Financial Ombudsman if they don’t resolve it.
Lynsey D says
Thank you so much for these templates. I’ve had a busy afternoon getting letters typed up and sent to six of the lenders that were all included in my Bankruptcy in 2013. My credit file was still showing I owe them money and the default dates were all dates after the bankruptcy date. Let’s hope they all take notice and get my credit file updated correctly, many thanks Lynsey.
Kerry says
Hi. I was declared bankcrupt in Sept 2013 and discharged in April 2014 as it was straight forward. I have been having a few missed calls from a collection company. I asumed that my discharged was the end of the matter?. I have noticed that on my credit file there are a few closed accounts with balances and some with not. Is this nothing or are they phishing? Thanks
Sara (Debt Camel) says
The article above says what to do with the accounts where there is a balance still showing. Getting these set to zero won’t make a difference to your credit score but it will stop you being chased for the debt or the debt being sold on – even though you aren’t liable for any debts from before your bankruptcy I think this is worth doing to prevent any possible hassle.
If the collection company calling you is one of those showing with a balance, then return their call and tell them when you went bankrupt.
If there is no sign of the debt collector on any of your credit records (check with all three credit reference agencies, see https://debtcamel.co.uk/best-way-to-check-credit-score/) then you could decide to ignore it until they write to you. Or you may prefer to phone up and get it resolved – it’s quite a personal decision.
Axel says
In my case, after sending the letters as per above, and hearing nothing back, I took the step to raise a complain with Resolver and email the complaints departments of the creditors. I have to say that in almost 80% of the cases (had a list of 18 creditors ) the address for the datacontroller from ICO was not correct or although recorded post reached (all address received the recorded post) them it was not until i raised the Resolver case or sent the email to the complaints departments that someone actually did something about it.
Finally, one thing that will help you with the “difficult” ones, is to ask from the Insolvency Discharge email, to send you a list of your creditors. You can tell them that correcting your credit files some creditors asked for it. They will send you a barcoded official file that you can include with your emails to creditors and they will promptly do the corrections.
One last thing, while the above works, that doesnt mean you should not send the recorded post and keep a copy of what you sent. When you complain, producing the receipts and proof of post to them demonstrates you have already applied an effort and your complain has a basis, even if nobody really got the damn letter. Of course, there may be some that will not care still, so then you will reach for ICO.
Hope that will help some.
Sara (Debt Camel) says
Thanks for such detailed feedback. I will mention Resolver as a way of making these complaints.
Monique says
Hi Sara
Please could you help me. I was declared bankrupt on 03/05/2013 but the default date shows 03/05/2013 and the date satisfied is showing 03/05/2014. Do I need to contact this creditor to change the date satisfied to 03/05/2013?
Thanking you in advance as I am on a clean up mission as I only have 12 weeks to go before I am out of bankruptcy prison!
Sara (Debt Camel) says
No, it is right that the date satisfies is the date of your discharge. The debt will disappear on 3/5/19 along with the bankruptcy marker – countdown to a clean credit record!
Monique says
Thank you!!!!
Lisa Boggis says
Hi my hubby went bankrupt 4 years ago and herd no problems but today got an old debt out the blue what he went bankrupt for from intrum don’t no why
Sara (Debt Camel) says
he needs to tell them when he went bankrupt. Normally this clears things up very quickly.
simon h says
i had a ppi and that went in to my trust deed but after looking feather in to this i ask the Halifax and the bank agreed to pay me my money to me as the trust deed went bankrupt still fighting for the money i paid in
Alan McIntosh says
Hi Simon
There has been a landmark UK Supreme Court decision in relation to Protected Trust Deed and PPI.
What this essentially found was where your Trust Deed was properly worded, if the PPI claim came after your trustee was discharged it should return to you.
However, where a Trust Deed fails and becomes a bankruptcy (sequestration), this rule doesn’t apply as bankruptcies are different and the Trustee in a bankruptcy can re-opened a bankruptcy, even after they have had a discharge to take the money from the PPI claim.
Ultimately, it is not for the bank to decide who gets the money. If a Trustee in Bankrutpcy has been appointed, the money has to be paid to them and they decide. Normally they will keep it.
If they have already been discharged under the bankruptcy they will normally have to go back to Court, or in some cases they can ask the Accountant in Bankruptcy to reopen the case.
This, however, should not be a problem, provide they can show your creditors will receive some benefit from them reopening the case and the money won’t go just to pay their fees.
Patricia M says
Hi is says current balance satisfied but shows no settled date what does this mean? All off my balances are still appearing should they be at zero. Also I read that Experian keep the file on record for 7 years after bankruptcy is this correct?
Sara (Debt Camel) says
If the default date is before you went bankrupt, the debt will drop off after 6 years.
Bankruptcy drops off after 6 years too – I suspect you have read an article about Experian’s credit reporting in America which is totally different.
James says
Hi I had a utility debt at an old address start date 2008 I moved out of the property in 2009 and notified them. They continued to report 6 late payment maker on my credit file but no default. This happened every every month until I entered bankruptcy in 20017. I was discharged a year later in 2018. I notified and sent proofs to them of discharge etc. And in the end they removed it completly from my file. Now as of this month it has reappeared? Under linked addresses. It shows a settlement date of 02/2019? Surley this should read the date of bankruptcy?
Also do they have to enter a default or can they just carry on reporting 6 late payments as they did for a decade with out entering one? Because if they did it would of dropped off 5 years ago.
Many thanks for you assistance
Sara (Debt Camel) says
There should be a default added of the date you went bankrupt and a settlement date a year later when you were discharged.
With bankruptcy on your credit record in 2017, there is no point in having an argument about getting a deafult added before then as it will make no difference to your credit score.
Nikki says
Hi Sara,
Can you please advise me on something I am struggling with an answer to?
I had 2 joint accounts with my ex husband before I went bankrupt. One was a bank account with an overdradt and a monthly fee which my ex husband didn’t pay. I fought with the bank to get this closed and eventually they did but only marked it settled in Feb 2018, even though my discharge date was nov 2016. Can I do anything about this since his name was on it too?
The other was a mortgage which he left the country and stopped paying. As my name was on the account, the bank still advise the credit agency every month that I have missed a payment. I have spoken with them several times and they refuse to amend it. Is there anything I can do?
I would very much appreciate your help as I am trying to clean up my credit file and get on the property ladder again.
Many thanks
Sara (Debt Camel) says
If your discharge was Nov 16, you must have gone bankrupt in Nov 15. You have no chance of getting a mortgage at an OK rate while bankruptcy is still showing on your credit record until Nov 2021 but your aim at the moment is make sure all your problem debts have default dates on or before your bankruptcy date, so they will all disappear by the time the bankruptcy marker goes and your credit record is clean.
Your liability to pay the overdraft and the mortgage ended when you went bankrupt. Both debts should have a default date of the date of your bankruptcy. the fact these are joint debts doesn’t affect your credit record, you no longer owe these debts. Use the letter in the article above to put in a formal complaint to the lenders about this and take the complaint to the FCA if the lenders don’t sort it.
Nikki says
Thank you very much! This is the answer I’ve been searching for online for ages! I will do that straightaway!
Thanks again,
Nikki
Bobby says
Hi,
I am about to go bankrupt. I was just wonder after I’ve been discharge, I know I can start to rebuild my credit. However – I’m a little confused. After 6/7 years will still show that I declared bankruptcy or will that be removed also? In regards to my credit file that is.
Many thanks,
B
Sara (Debt Camel) says
The note of your bankruptcy will go from your record 6 years after it started.
Helen Bingham says
Hi
I will be discharged from bankruptcy on 21st August 2019, in just over 2 weeks ! Can I start to repair my credit straight away or will I have to wait ?
Also, I have checked my credit report and I have a Tenancy Vet on there in the name of my Ex Husband’s new partner ? and it looks like he has applied for credit with Hitachi UK and it has linked me to it – could this damage my credit further before I am discharged ?
Many thanks
Helen
Sara (Debt Camel) says
You should wait 3-6 months at least to give creditors the chance to mark your debt as settled or partial settled. Absolutely no hurry at this point, your credit is going to be dreadful for a long while.
Katie says
Hi Sara
My husband went into sequestration (we’re I Scotland) August 2013 and discharged 2014. We expected it to disappear off his credit file end of this month so started looking to buy a home (bankruptcy happened before we met and current home in my name) but my mortgage broker says it won’t come off for another year. Is this right?
Sara (Debt Camel) says
Hi Katie, I will ask a Scottish expert to reply to you.
Alan says
Hi Katie it should come off 6 years after the sequestration was awarded, as that is when you effectively defaulted on the agreement.
It is the same as elsewhere in the UK regarding bankruptcy.
I would obtain a copy of your credit file and see when the account was noted to be in default.
Katie says
Thanks for replying. Unfortunately they are all over the place regarding default dates and different on each of the 3 reporters. We’re going to try and clear that up as sequestration was awarded August 2013 so I’m assuming default date should be no later than then? If so will everything with that date disappear this September? Thanks
Pat says
Hi. I went bankrupt in 2013 and discharged a year later. The bankruptcy has recently dropped off my credit file. I’ve beeen notified by the tax man re the loan charge and that I owe money. However this loan relates to 2006. Can I still use the fact I went bankrupt in 2013 to stop paying this? I don’t think it was added in the original BRO. They have been aware of my bankruptcy as you have to notify them, file a last tax return under the old UTR. Also spoke to them over the phone after receiving an APN post bankruptcy about 4 or 5 years ago.
If I can, what part if the bankruptcy act can I quote to them as they are chasing me.
Thanks,Pat
Sara (Debt Camel) says
I don’t know, I haven’t come across this situation.
I suggest the first thing you should do is ask your Official receiver’s office if this debt, relating to a time before your bankruptcy, was included in your bankruptcy even though you were unaware of it and did not list it on your bankruptcy application. If they say this is, then this will be simple.
Pat says
Ok thanks Sara. I’ll email them
Robert Michaels says
Hi
I am having an issue with a Halifax loan, it was included in my bankruptcy application (granted 5th April 2018). I was discharged this year, Halifax are stating that they have attempted to close the loan however due to a system problem, they have been unable to do this and are still reporting a balance owed to the CRA’s. After complaining I was told that when/if the problem gets rectified then they will backdate the default date on my reports. My only question is, surely under GDPR they should be reporting accurate information to the CRA’s? They just seemed to want to brush off the problem and throw some money at me to shut me up.
What would you suggest?
Sara (Debt Camel) says
So they have offered you some compensation? How much?
Robert Michaels says
I think it was like £30
Sara (Debt Camel) says
the problem here is that although this is annoying, it is hard to argue that it is doing you any real harm at the moment. Your credit reating is going to be pants (technical debt advice term there!) for nearly 5 years. This error by the Halifax isn’t going to make much difference at all for quite a while.
You could just take the £30 and check your credit record again after 6 months. If it isn’t corrected then, put in a complaint and say they have had 6 months to correct their systems error and nothing has happened. Say you will be going to the Ombudsman unless they either correct your credit record or offer you additional compensation – say £200?
Gemma says
Hello, I wonder if you can help me with this, please.
I was made Bankrupt in 2014, the date of default is correct. 06/10/2014 however the account was not closed down until 19/10/2017 which means i have almost three years of defaults past of defaults date.
I was just about to write a letter to ask for this to be addressed, as per your info above however the default date is right.
Sara (Debt Camel) says
So this debt will disappear in October next year. The debt should have shown as partially setisfid in 2015, not 2017. However getting this corrected is not likely to make any difference to your credit score or to the likelihood of anyone lending to you – the fussy lenders won’t lende anyway with bankruptcy still showing and the unfussy ones will lend anyway as the debt is currently showing as as satisfied. So you may decide there isn’t much to gain by bothering with this.
Gemma says
Thank you very much for the quick reply, Sara.
I was worried that my Status History would still show the defaults until the account end date of 2017 and in turn, would not drop off till 06/10/2023
If what your says is that all history of that account will drop six years after the date of default i.e. 06/10/2014 and will fully drop off 06/10/2020 or around about that time then am happy with that.
Not interested in new borrowing just wanted to get things in order. Thank You…
Sara (Debt Camel) says
I couldn’t open the image file you attached. But if there is a default date of your bankruptcy date on the debt, then it goes 6 years after that date, not 6 years after the debt was seen as closed. Not long now!
Gemma says
I know, I am looking forward till it’s all behind me.
Thanks for the great resource you provided!
Dave says
Hi Sara I was made bankrupt on 25/5/2018 and I was discharged a year later. I’ve checked my credit reports via clearscore, moneysavingexpert and credit karma with reference to all the debts and they are all showing different things! Clearscore shows all the accounts closed and all bar one of them now has a 0 balance but all of them have marked as recent defaults (as recent as August 2019). Credit Karma on the other hand shows the account that doesn’t have a zero balance as open but the rest as closed and part satisfied (again though they all have recent defaults with ps showing as the last one) should the ps be on the date I was made bankrupt? Should I write to them all regarding the default dates as I think they all look wrong and with the one that still has an amount showing to zero the balance and show ps as the others are? As it’s slightly different on each report do I need to provide the examples for each report stating that I want them changed on each report?
Thank you for your help!
Sara (Debt Camel) says
I would get your statutory reports from each of the credit reference agencies, see https://debtcamel.co.uk/best-way-to-check-credit-score/. Then you know you are seeing the real data, rather than the way some report describes it.
Then write to every creditor that has the wrong information, saying Experian shows this – it’s wrong , it should show that; Equifax shows this …. trsnaUninion shows this.
Jane says
Invalid on applying for credit card. I am 9months post discharge and balances are all zero but not accepted for credit. Equally Experian has a higher rating for me when bankrupt and now post discharge it’s lower and refuse to upgrade my rating g for another six months. That’s the reality after bankruptcy.
Sara (Debt Camel) says
Experian recalculates your score everyday. But if you have made several applications for credit cards, that is too many and not making any more for at least 6 months is a good idea.
Look at LOQBOX. You won’t be turned down for that and it starts the slow process of repair. The aim is to get a great credit score after your bankruptcy goes, if never going to get good quickly.
Jane says
I haven’t applied for anything and actually they’ve stated they wont update my score now until next year.
I’ve had a soft search so there’s nothing in there other than zero balances I’m lost on how they state no update to score for another 5months
Sara (Debt Camel) says
“ they’ve stated they wont update my score now until next year.” who have stated this and where?
Jane says
Experian it’s in the forecasting they do I’m at 466 and I was at 510 when bankrupt
Sara (Debt Camel) says
Ok so it’s probably just say they can’t see that anything will change on your report for 6 months. There are no defaults due to drop off, loans to be repaid etc.
As I said, look at LOQBOX a for regular saving that helps your credit score.
Are you paying for this Experian report? If so stop that and save that amount up as well!
Mr Geoff says
Hi I went through bankruptcy june 2018 and discharged 2019, yet companies are not closing/satisfying/partially settling my accounts. So I still have 8.5k of debt sat on my file. How can i rectify this issue please, i have made an attempt to contact each of them, and they say it will be sorted, but it isn’t.
Sara (Debt Camel) says
Your credit score is not going to get to up to OK now for several years no matter what you do. Trying to get a credit record updated over the next few months is going to be prolonged and frustrating as the lenders and the Ombudsman will be giving it almost no attention. I suggest you come back in 6 months and then get going on full complaints as the article above says. 6 months is not going to make any practical difference to you.
Jane says
That’s not totally correct I’ve found be polite and they will change the credit file it’s a requirement post bankruptcy. I wouldn’t agree with go for complaints after six months.
Sara (Debt Camel) says
oh yes, it is normally pretty easy to get this sorted, just persevere.
But banks are going to be inundated with coronavirus hardship problems at the moment AND they themselves will have staff that cannot work. I am just saying this doesn’t seem to me to be a good time to be raising issues that are not immediately of importance.
Jane says
Companies are required to update the credit file, with either zero balances or partially settled. I did this by asking Experian to challenge the record made by each company. Equifax seems to be the main one that never updates, me personally been trying for two months and my record with them is way out of date.
Perseverance and be polite I’ve only just had one closed one year in from discharge the alternative is ask the credit file company to add your own notes.
Andy says
Hi
Fantastic informative site, Thanks!
Quick question please: I was declared bankrupt in November 2018 after I defaulted on a Government inspired Enterprise Finance Guarantee business loan and was discharged in November 2019. I’m now at the beginning of the long slog to repair my credit file and have already got myself a Vanquis credit card and use it every month but ensure the full balance is always cleared. If I was to also open a loqbox account would this help my credit file score or hinder the repair as showing me having too much credit too early?
Kind Regards
Andy
Sara (Debt Camel) says
Opening new credit always harms your credit record for a few months, after that it starts to help.
There is no moral judgement going on that you shouldn’t have access to so much credit because of your bankruptcy, it’s just that the black marks on your record dominate the scoring and adding new good marks makes very little difference.
But if you can save the money with no hardship, why not? Just don’t stretch to do this.
Katie says
Hi
I have some queries I’m hoping you can help with. I was declared bankrupt in December 2016, discharged December 2017. My credit is getting worse and I don’t know how to stop it.
1) some debts included in the bankruptcy have been sold to debt collectors – when I rang them they just added themselves to my credit report with an amount outstanding!
2) one of the debts that was included is to a company that now doesn’t exist and so they are reporting an amount outstanding on my credit report and I can’t get it changed.
3) the insolvency office are telling me companies don’t have to mark the accounts differently or report I don’t owe them money even if they are included in the bankruptcy.
I’m nearly 4 years on and still can’t even get a current account or a credit score over 300!
What can I do?
Thank you in advance!
Sara (Debt Camel) says
Do all the debts have default dates on or before the date of your bankruptcy?
You should be able to get a basic bank account but will have difficulty getting a current account with an overdraft.
Also are you in a position to be able to save any money each month?
Kayie says
Hi Sara.
I do have a basic bank account, I think I just thought being nearly 4 years on I would at least be able to get a current account by now. I can’t get a mobile phone either.
I do have a Luma and capital one credit card with small limits which I keep under control.
I am unable to save any additional money as the reason I ended up bankrupt (financial abuse from my ex husband) hasn’t really changed – he owes me £5k in maintenance – if he regularly paid maintenance I would have a nice savings pot!
Sara (Debt Camel) says
The Luma and Cap One cards, are you running balances on these? the best thing for your credit record is to pay them off in full every month.
No you probably can’t get a normal current account with an overdraft until bankruptcy goes from your credit record. but ap[art from the overdraft, doesn’t your bank account do everything you want?
Do all the debts have default dates on or before the date of your bankruptcy?
Katie says
I can’t see the dates on clearscore I can only see the date the account was opened and then dots that indicate I have been missing payments since 2016.
Sara (Debt Camel) says
In that case it sounds as though there is no default date on the debt. You need to ask the creditor who owned the debt at the point you want bankrupt to add a default date of your bankruptcy date – the article above explains how to do this.
This is important, much more important than whether there is a balance showing, as unless a deafult date is added they will be on there forever. When a default date is added, the debt will drop off in December 2022 when your bankruptcy goes.
Monique says
Hi Katie
Apparently I have heard that you should contact these companies and request a copy of the original credit agreement from them which they obviously would not have as you didn’t take out any credit with them due to the debt being sold/bought by them. If they can’t provide it I think you can complain to the ICO or FCA I’m not sure which one.
Sara (Debt Camel) says
Hi Monique, this won’t help Katie as a) the creditor has no obligation to produce the CCA report after bankruptcy and b) the CCA report is irrelevant to credit records anyway
Monique says
Ok thank you I just thought she could request the CCA report under a FOI request for GDPR.
Sara (Debt Camel) says
It won’t help as CCA agreements have NOTHING to do with credit records. Asking for the CCA agreement can sometimes be very useful – see https://debtcamel.co.uk/ask-cca-agreement-for-debt/ – but this is not one of those situations.
(You have to ask for the credit agreement in a very specific way, see that link, not make a GDPR request.)
Katie says
The thing I can’t get my head around is that the debts included in the bankruptcy are reporting, as they have for nearly 4 years now, that I’ve missed every payment – is that right? It’s just making
My credit worse every month surely?
Sara (Debt Camel) says
They should have been marked as satisfied or partially satisfied – see the article above which exoplains how to ask the current creditors – whether that this the original lender or a debt collector – to do this.
But this will not actually improve your credit score. Only the defaults dropping off will do that. That is why it is very important what the default dates are.
Katie says
ClearScore doesn’t show me the default date, only the date the accounts were open and when they were last updated. How do I find the date of default?
Kem says
I have been discharged from bankruptcy since the end of 2017.
I immediately set about trying to rebuild my credit rating again as I had previously had a good rating which obviously comes with benefits.
To date with both Equifax and Experian I have a ‘fair score’.
However, 2 debts that were included in my bankruptcy show as defaults in my report. They do have default dates that coincide with my bankruptcy (2016 – last updated 2017 discharge).
I understand they will fall off after 6 years. I just wonder why others don’t show at all while these 2 do.
Sara (Debt Camel) says
Have you looked at your Transunion credit record?
Kem says
Yes, I have today set up an account with Transunion.
A great deal of the information on that report is incorrect.
It shows credit card limits that I had prior to bankruptcy as available balances etc. – ie those accounts are showing as open.
I will need to see what I can do about this tomorrow.
It’s weird because for the most part my Equifax and Experian files are up to date and correct.
Tracy says
Hello I would like to ask a quick question please. I was declared bankrupt on 23/06/2014 so i am almost at the end now. Will my credit reports reset to the day ie 23/06/2020? They seem to update once a week and I’ve heard a few people say it happened a few weeks earlier or even a little later. Obviously I’ve waited 6 years but just wondered. Thanks.
Sara (Debt Camel) says
Your credit file will update on the day. But many credit reports are not “real time” so you may see a report that looks unchanged.
Jules says
Hi there!
My husband went bankrupt in may 2018 and was discharged in may 2019. After a bad start up business.
We are hoping to buy our home jointly in a couple of years. I have a good credit score showing and have never missed a payment as shown on my file I have no loans or debts, my husband has a credit builder credit card that he pays off every month and a phone contract that he pays off every month as well,obviously he doesnt have a fantastic score at the moment but would we be able to get a joint mortgage?
Sara (Debt Camel) says
You will only be able to get a joint mortgage at a very bad rate until the bankruptcy goes from his credit record, so 4 more years.
Farrokh says
Hi Sara,
I had a CCJ ruled against me in 2017, then was discharged from bankruptcy in 2019. The CCJ is still showing as ‘active’, is that correct? Shouldn’t it be ‘satisfied’? I know it won’t disappear entirely till my bankruptcy drops off, but I just wanted to check.
many thanks
Farrokh
Sara (Debt Camel) says
As the article above says, CCJs are an exception. It isn’t possible to mark a CCJ as ‘partially settled’ and the court will only mark a CCJ as satisfied if you have paid it in full, which you haven’t. So CCJs continue to show as unsatisfied.
Farrokh says
Ah… makes sense. Thank you Sara :)
Jul says
Hi, I’ve been made bankrupt last year. However I’ve noticed that my main bank account in which I also have a credit card with a balance that I included in my bankruptcy application remains open. Meaning they haven’t closed my accounts. I’ve asked the bank today to close them as I won’t be using this accounts anymore also I was worried that after my bankruptcy ends the banks start saying ‘youre no longer bankrupt and your bank accounts are still open so you need to repay your old debt now ‘ so that’s why I thought it was best to close all bank account which I included in my bankruptcy. I’m I doing the right thing? Thanks
Sara (Debt Camel) says
I don’t think you could have been a chase for the card debt but if you are now using a different bank account, closing the old one makes sense just for simplicity!
Jul says
Thanks so after your bankruptcy ends can banks still ask you to repay your old debts if your accounts with them are still open? Such as credit cards and accounts where you had personal loans. I’ve heard something about your only free of debts whilst bankrupt. Thanks
Sara (Debt Camel) says
No! At the end of your bankruptcy, when you are discharged, your debts are wiped out.
Stephen says
Hi,
Having gone bankrupt in 2016 (business failure despite being Ltd) in the UK, I was keen on this dropping from my credit file after 6 years from the day of the order. Having done research on line I’ve come across different kinds of bankruptcy which suggests certain rulings would effect your credit file for 10 years, and not the six I had planned for.
Are you able to clarify if this applies to the UK also, if so, how would I be able to identify which ruling was made against me.
Thanks
Sara (Debt Camel) says
If you have been reading about anything in other countries it is completely irrelevant.
Do you have a Bankru[ptcy Restriction Order?
Stephen says
Hi Sara,
Thanks for your response, no there was no Restriction Order, it seems just a straight forward process and I had no valuables over the value of £500 to surrender and therefore nothing was taken from me. My Tax code was amended for 12 months to make a tax contribution to the order but that was all (this didn’t affect my take home salary.
Thanks
Sara (Debt Camel) says
With no BRO The bankruptcy itself will go without trace after 6 years.
Have you checked the default dates on all your debts in the bankruptcy are in or before the date you went bankrupt?
Stephen says
Hi Sara,
It seems some of my creditors were still reporting default accounts some months after the ruling. I’ve raised disputes for these accounts to reflect the date I went insolvent.
Sara (Debt Camel) says
the accounts would have still has defaults reported until you were discharged. The important thing is whether the first default date was before your bankruptcy date.
Tina Bates says
My partner was discharged from bankcrupcy 01.03.20 however a few ccj that was included in his bankcrupcy are still showing active . How does he get this changed . Will they drop off after 6 years of date of issue (2015) or after 6 years from bankcrupcy (2020) should they me marked as active still ?
Sara (Debt Camel) says
As the article above says, CCJs will not be changed after discharge. The CCJs will drop off 6 years after the date of the CCJ.