Bankruptcy badly affects your credit record for six years.
This article looks at what should show on your credit record after you are discharged from bankruptcy. For almost everyone, discharge happens after a year.
But if lenders don’t record bankruptcy and your discharge correctly, they will continue to damage your credit record for longer than they should.
Even if you never want to get into debt again, a good credit score makes it easier to rent a house or get insurance – and it’s essential if you want a mortgage. So making sure the bankruptcy and your discharge is reflected correctly will help you.
Contents
The best time to start
There is no hurry to do this, Your credit score isn’t going to get back to good for years…
Lenders take time to change your credit records, so let them have a few months after your discharge. At least three months I suggest.
If you start this too early, it just means more work for you as you will be tackling some “problems” that the lenders would have sorted out themselves.
First check your credit records
There are three different Credit Reference Agencies (CRAs) in Britain. You need to look at all three of them as many lenders only report to one CRA.
Get the Statutory Reports from each of the three CRAs, there is no charge for this, see How to check your credit records for free.
Even if you can get other reports for free, the Statutory Reports are best:
- they are simple
- they can easily be downloaded
- they are “real-time” so you get a current picture of your credit record.
How bankruptcy should be recorded
The key document from SCOR/ICO
The Steering Committee on Reciprocity (SCOR) is the creditor body that decides how credit records should be updated. 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.
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.
What should happen:
- an unsecured debt – credit cards, loans, overdrafts etc – should be marked as defaulted with a default date which is your bankruptcy start date.
- there will be no change for any unsecured debts which have already been marked as defaulted.
The end result of this is that all debts in your bankruptcy should be marked as defaulted on or before your bankruptcy.
Secured debts such as mortgages
The situation with a mortgage (or a secured loan or car finance) 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]”
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 which will stay for the rest of the 6 years.
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].
So all the balances on the bankruptcy debts should be shown as zero.
There are two exceptions. CCJs cannot be marked as partially settled and will continue to show a balance even though you no longer owe any money. And if you have been paying a secured debt such as a mortgage, that will continue to show as up to date.
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 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 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 as there should be a default date not later than the start date of my bankruptcy. See the SCOR/ICO 2016 guidelines which say “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”.
Recording incorrect information on my credit record is also a breach of 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 either to the Financial Ombudsman (for consumer credit, mortgages and any insurance debts) or to the ICO (for other debts). Attach copies of your email or letter to the creditor and any reply from the creditor.
2) Problems with mortgage debts
For some reason, mortgage debts can cause problems. Some lenders say that mortgage debts are not included in bankruptcy. That is not correct.
The Financial Ombudsman has explained the facts in this case against Platform:
To clarify, the Insolvency Act covers secured as well as unsecured debts. The main difference being that most unsecured debts will be written-off as there’s no asset the creditor can take into possession to recover the debt. With a mortgage (or indeed a loan secured against any asset, such as a car for example) the lender can repossess the item the loan was secured against – in this case a property – to repay some, or all, of the debt. This doesn’t mean secured debts don’t fall within the Insolvency Act, just that the lender has an additional level of security as there is an item it can take possession of so it doesn’t just write-off the debt. This is the difference between the right to enforce its security over a property, and the right to require a borrower to repay the debt.
And the same applies if you no longer live there but your ex does and is still paying the mortgage. Here is a case against Santander.
In this case, Santander told Miss K incorrect information:
In its final response letter, Santander said as the mortgage is a secured debt it wasn’t included in the bankruptcy and Miss K remains jointly and severally liable for it. And so it said it would continue to report this to her credit file.
The Ombudsman explained this was wrong and said:
Santander should update Miss K’s credit file to show the account defaulted at the date of her bankruptcy and the debt as partially satisfied on the date of her discharge with no entries after this. I said it should pay £250 for the upset and inconvenience this had caused Miss K.
Some lenders say they can only record a default when a house has been repossessed. That is also wrong. the default should not be later than the date of your bankruptcy if you weren’t paying the mortgage.
Use the above template to complain to your lender but add an extra sentence in referring to the Platform decision:
“As the Financial Ombudsman says in https://www.financial-ombudsman.org.uk/decision/DRN2624267.pdf, secured debts such as mortgages are included in bankruptcy. I have not made any payments to this mortgage since the date of my bankruptcy and a default should be added with the date of my bankruptcy.”
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,
You can 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 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 Financial Ombudsman or ICO 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 a bad credit card such as Vanquis, Aqua or Luma. 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 product where you make regular savings for 12 months but it is set up as 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 that you can withdraw 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 Ombudsman or 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.
How to use a credit builder card
Can’t pay your bills & debts?
How does discharge from bankruptcy work?
AB says
Sara
This post is in regard to when exactly a default occurs.
My family, all deedholders in a buy-to let portfolio, have all had to go bankrupt after defaulting on a loan secured on same. We went bankrupt at different times over a 3 year period. Mortgages were maintained until the last bankruptcy.
One lender took the view that until a property was sold, the debt could not be crystallised and so could not be included in a bankruptcy. This had the impact of effectively prolonging the 6 years post-bankruptcy notification to credit reports – a significant inconvenience to the first bankruptee.
We complained to the Financial Ombudsman whose initial view agreed with the lenders position. We are currently challenging this view and would welcome any assistance on our best way forward.
Regards
AB
Sara (Debt Camel) says
One lender took the view that until a property was sold, the debt could not be crystallised and so could not be included in a bankruptcy.
This is wrong. There is no need for a property to be sold for the debt a bankrupt owes to be included in their bankruptcy.
See 43.7 and 43.8 in https://www.gov.uk/guidance/technical-guidance-for-official-receivers/43-creditors-and-liabilities
If the bankrupt concerned asks his Official Receiver about this the OR should be prepared to confirm that the mortgage date was a debt provable in his bankruptcy.
Also point the adjudicator to https://secureservercdn.net/160.153.137.210/mb9.87b.myftpupload.com/wp-content/uploads/2020/08/Principles-for-the-Reporting-of-Arrears-Arrangements-and-Defaults-at-Credit-Reference-Agencies-vesrion-2a-final.pdf which dexribes Industry Best Practice for reporting defaults. It says on page 7
“In normal circumstances lenders will be notified when the debt that is owed to them is to be included in an insolvency e.g. bankruptcy, IVA or similar and should be marked as included in that by filing a default as soon as is practical.
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. In circumstances where the lender is not immediately aware, the default can be filed at that point in time. If evidence of the insolvency date is provided, the default date recorded at the CRA will be aligned.”
The fact that this is a joint mortgage is not relevant. The individual filing for bankruptcy has had that debt included in his bankruptcy application.
AB says
Sara
Thank you for your response.
My understanding of the position taken by the lender is based on your reference highlighted above.
https://secureservercdn.net/160.153.137.210/mb9.87b.myftpupload.com/wp-content/uploads/2020/08/Principles-for-the-Reporting-of-Arrears-Arrangements-and-Defaults-at-Credit-Reference-Agencies-vesrion-2a-final.pdf
On page 8 (2nd para)
‘Where there is joint liability and only one party is the subject of an insolvency order, then the account should not automatically be marked in default if it is being maintained by the other party.’
The lenders position
Noted that the bankruptcy of deedholders occurred over a 3 year period.
The lenders point is that because the mortgage was maintained after the first bankruptcy, there was no default – the mortgages were being paid. Nothing to report. This is said to be fair to the first bankrupt deedholder because the possibility is open that until the last man goes bankrupt, it is not certain that there will be a default. The lender would state that their position is consistent with the clause highlighted above.
Your comments are appreciated
AB
Sara (Debt Camel) says
I would still argue that the default for the first person to go bankrupt should be backdated to the date of their bankruptcy – they made no payments after that, the mortgage was included in their bankruptcy from the start and they had no liability to make any payments after that and to make the default later is unfair to them.
AB says
Sara
I totally agree with you. However, it is not my (or your) opinion that counts.
The lenders point is that the tangible fact of the default occurred approx. 3 years after the first bankruptcy – and that their reporting of same is consistent with ICO document. Given that there was no tangible default on the first bankruptcy, what should lender have reported at that time.
The other guidance document you referenced confirm your (and my) opinion – but what happens when two guidance documents appear not to be consistent with each other. Which has precedence. Do lenders have to comply with both guidance documents, or just either.
This is what I believe to be at the centre of the problem.
AB
Sara (Debt Camel) says
FOS looks at all facts in a case and should take a decision that is fair.
That is why I suggested you point out that the mortgage was 100% included in the bankruptcy from day 1, any discussion about whether the debt is crystallised or not is irrelevant. The Official Receiver should be able to confirm that to you in writing which you can show FOS.
You then argue that it is unfair for a default to be added later than the bankruptcy date. If the lender chooses not to add a default at all because the mortgage is being repaid, that is fine. But it is unreasonable for someone to have a default date of later than the bankruptcy added as at tht point they have no liability for the debt so it should be backdated to the bankruptcy date.
AB says
Sara
Thank you for your comments above. You have reinforced my view of the issue.
It has been suggested that the FOS is not the best platform for me to complain to – that this enquiry should have been better placed with Financial Conduct Authority.
Your comments appreciated
AB
Sara (Debt Camel) says
The FCA will not look into an individual query – FOS is the right place.
Maria says
Thank you for the information. I have a couple of questions that I am not clear on.
1. I’d like to apply for a credit card after I’ve been discharged in March this year. I plan on using it for groceries which I will pay straight away.
Will this help start restoring my credit at all? And if so, will it be significant?
2. After the bankruptcy clears from my credit file, will my credit improve? And if so, by how much? Will it be fair, or good, at all? Would having had the credit card as above, help at all?
Sara (Debt Camel) says
After your discharge wait a couple of months and then check all the debts in your bankruptcy are marked as settled as the article above suggests. Get all of these sorted before applying for a bad credit card.
When you get a card it will have a very low limit. Use it once during the month for something that is less than a third of that limit. Do NOT pay it off immediately, but wait until the card statement/email arrives. Then pay it in full. The simplest was is to set up a direct debit to repay the card in full every month.
If you pay it off too soon, no balance shows on your statement and that doesn’t help your credit record. Pay in full after the statement and you never pay interest.
Do this and it will help your credit score a bit after awhile but when the bankruptcy goes yiur credit score should jump to very good.
Maria says
Thank you 😊
Lisa says
I was discharged nearly 10 years ago…. Will my records be kept on land registry even when I owned no land
Sara (Debt Camel) says
No.
it drops off your credit record 6 years after you went bankrupt, 5 years after your discharge if you were discharged at the 1 year point. It was never recoded against a property on the land registry if you did not own one.
Lisa says
So if a k16 search is done it won’t show up??
I’m worried as his discharge was April 2017. Will the search be done uo to 2017?
Sara (Debt Camel) says
No. A search is on his current credit record, there is no way to search on what someones credit record would have shown in 2017. A mortgage lender also asks for bank statements, usually going back 6 months.
Lisa says
Thank u think im overthinking it. We are nearly at completion so stressed is the word
Lisa says
I read they all go on is that not the case??
Lisa says
Just reread.
I meant will a k16 bankruptcy search show up as a discharged bankruptcy in 2017 on records? Discharged April 2013
never owned a property
Sara (Debt Camel) says
This is the Insolvency Service’s description of how the Land registry records are updated: https://www.gov.uk/guidance/technical-guidance-for-official-receivers/7-hm-land-registry-and-protecting-property-interests
Here is Citizens Advice’s page talking about what happens on discharge from bankruptcy https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/bankruptcy/after-you-go-bankrupt/discharge-from-bankruptcy/
Here is the legislation covering the removal of entries from the registers after 5 years: https://www.legislation.gov.uk/ukpga/1972/61/section/8
The K16 form https://www.gov.uk/government/publications/bankruptcy-official-search-application-k16 is very simple – you will see there is no way someone can ask for a search of the registers at some time in the past.
I have never heard of anyone having a probem with an entry not being removed from the pending applications register.
Was your partner asked if he had even been bankrupt or insolvent on the mortgage application? If he answered yes (which he should have) then if you have not been asked any questions about this so far, there is no reason to think the lender cares about this ancient history.
Lisa says
I think he was asked in the past 6 years.
So it will be automatically removed at the 5 year mark and a search won’t show it anyway so all should be fine? I assume the solicitors meant bankruptcy checks for the seller .. new to all this so not sure if we get checked
Sara (Debt Camel) says
“I think he was asked in the past 6 years.”
Asked by who? this is a recent mortgage application, isn’t it?
GB says
I’m looking into mortgages. I was discharged from bankruptcy 6 years ago but I had a BRU in place. I was discharged from the BRU in Feb 2020. Most lenders who accept previous bankruptcies ask for discharge 6 years after which I am. I’m wondering what affect my BRU plays in this? Am I technically only 2 years discharged? Any help would be appreciated! Thanks!
Sara (Debt Camel) says
You were discharged 6 years ago. I don’t know if a lender will ask about a BRU – I assume it no longer shows on your credit record?
Grant says
Ok thank you. Yes it no longer shows on any of my files I’ve checked them all. Thanks again for your help in the past.
Sara (Debt Camel) says
I always suggest going through a broker when you have been insolvent. Many lenders won’t care after more than 6 years but you want to avoid the ones who will.
Maria says
Hello again,
I have just checked my credit via Clearview and my accounts which have been included in the bankruptcy show as in default. Is this was it is meant to show?
Sara (Debt Camel) says
You haven’t been discharged yet, have you?
Maria says
Not until beginning of March
Sara (Debt Camel) says
Then all your debts included in the bankruptcy should be marked as defaulted with a default date on or before the date of your bankruptcy.
You should forget about your credit record until June. Then come back and have a look.
Maria Sierra says
Thank you for the information.
On another note, as mentioned before, I will be discharged in March bit will still make payments for another 2 years.
Can I open a savings account after being discharged in Mar or do I have to wait another 2 years?
Sara (Debt Camel) says
well you can open a savings account, but I don’t think you should save more then a small amount in it, say £20 a month. If you save a lot more, your trustee may assume you could afford to pay more to your IPA.
Maria Sierra says
Thank you Sara.
I’m looking at my pension and it’s not looking promising 😒
Sara (Debt Camel) says
you want to save into your pension you mean? Are you making payments at the moment?
Maria Sierra says
I have 5 pensions and I’m trying to transfer a few of them so that I end up with 2 only. However, I’m also looking at investing in ISAs, bonds or shares but I’m not sure this will affect my bankruptcy currently.
My partner and I have a plan to buy a home in 8-10 years so I’m in need of my money to make me more money😁 if possible.
I’m an NHS staff so the current pension is not that bad but the pay is😒
Sara (Debt Camel) says
I can’t see a problem with transferring your pensions into a couple of pots. That is not adding more savings.
The difficulty is if you are saving a lot of extra money each month. I think you just need to get through the next couple of years, then you can earn what you want and save as much as you want.
Maria Sierra says
Thank you, makes sense.
Bobby B says
Hello!
I went BR in October 2017, I had defaults registered against me right up to 2021 so I went about the clean up process. Sent the letters etc. All relevent creditors replied but all registered defaults up until my discharge date of October 2018. I thought it could not be any later than my BR order date. I would understand if one or two had made the mistake but all of them seemed like too much of a coincidence. I double checked my request letter and it clearly stated default should be no later than October 2017. As an aside this only appears on the Transunion side. I have no info apprently for Equifax or Experian (using checkmyfile).
Also last question is EE are still reporting US (Unknown Status) right up to today. Is this correct or should it be amended?
Thanks for the website it holds so much informative information and helped me on my BR path many years ago!
Sara (Debt Camel) says
A default date should be added on or before the date of bankruptcy.
Then defaults should be recorded until you are discharged. At that point the defaults should stop and the debt should be marked as settled or partially settled.
this EE debt – is there a default date on it?
Bobby B says
Thank you for explaining that Sarah. On closer inspection, it does appear that all debts are default except for EE and one other, recorded before the bankruptcy date. I was confused as to why defaults then ran until discharge date. I was under the impression defaults could not run past the bankruptcy order date. Thank you for explaining this! In October 2023 my Bankruptcy will have reached the holy 6 year marker. When this hits does it mean all defaults drop off my credit file automatically or will I have to wait an extra year to hit 6 years from discharge?
Thank you again for your invaluable information!
Sara (Debt Camel) says
if the default dates were on or before the date of your bankruptcy, 6 years later they will all have dropped off.
George says
Hi, recently discharged from bankruptcy, having sold the car, I now need a car for work. My credit score is surprisingly good, well above national average(?). No debt or arrears, no DRO’s or IVA’s, paying nothing to nobody. What might be the prospect of getting a small loan to purchase a car? I have a credit card with a big bank but with a very small limit. Would lenders not consider me at all, even though I could more than afford repayments.
I don’t want to start applying for loans to have them rebuked with a hard search left on my credit score.
Sara (Debt Camel) says
the bankruptcy doesn’t show on your credit report? Have you checked with all three credit reference agencies, see https://debtcamel.co.uk/best-way-to-check-credit-score/ for how to do this.
George says
Hi, the bankruptcy does show on the credit report.
I would say my score is probably not well above average but is about average. (just checked)
Sara (Debt Camel) says
Lenders don’t normally use the score you can see, so you may still have a lot of difficulty. there are bad credit car finance lenders that will lend at very high rates of interest though. best to borrow the smallest amount possible from them.
George says
Hi, I didn’t think it would be easy to get a loan. I’ll struggle on with the bicycle even if it kills me (it might) before I go anywhere near that lot.
Thanks again Sara.
Sara (Debt Camel) says
Put aside the money you would spend on car finance and you will be able to buy a cheap car with no finance after a while!
Maria says
Hi Sara,
It’s me again. I’m going to start my nursing degree in September. I’ll be taking a loan and grants. I won’t be able to work full-time due to the nature of the degree.
I plan on hopefully working one day a week if time allows.
It has now been a year and a few days since I filed for Bankruptcy and I currently pay £64 per month. What happens when I no longer have an income and the maintenance loan and grant barely cover expenses? Do you think I will be asked to stop the payments?
Thank you
Sara (Debt Camel) says
As soon as you know the date your income will stop, tell the Official Receiver this and ask for your IPA to be reviewed as you won’t be able to afford it.
Maria says
Thank you 😊
Maria Sierra says
Hi Sara,
When I am reassessed, what happens usually?
I’ve heard in some cases, people pay £0 per month until they start earning again and then their normal monthly payments are reinstated.
Thanks
Maria
Sara (Debt Camel) says
yes that is common. But the IPA cannot go on for more than 3 years from the date it starts. Any months you don’t pay are not added onto the end. So you are unlikely to have finished your degree and started work full time during that time?
Roy says
Hi.
I filed a bankruptcy application in November 2015 … discharged 1 year later … over 6 years later this should now be cleared from my credit file along with all associated debts.
But … Halifax mortgage which was included in my bankruptcy was only shown as defaulted in July 2017 … and will be on my file until July 2023.
They say they will only correct my file if I send them a discharge certificate at a cost of £70 to me. Is that correct given that they didn’t follow procedures and have listed the default almost a year and a half later than my bankruptcy date?
Thanks in advance for any help/advice.
Sara (Debt Camel) says
Well it’s not fair. You can complain if you want and take your complaint to the ombudsman.
Or you can be practical and pay the £70 and get it sorted.
Jay says
Hi Sara,
I’ve just checked my credit file and there is one creditor who states I’m ‘in arrears’. I am discharged from bankruptcy in less than 2 weeks.
Should I be contacting them to request a default notice from the start date of my bankruptcy on this credit with the template on this article?
Best Regards,
Jamie
Sara (Debt Camel) says
yes but I would wait a two or three months. At that point you can ask for a default date to be added AND for the debt to be ,marked as satisfied or partially satisfied.
Silvija says
Hello Sara,
I declared bankruptcy 4 years ago, and have been discharged 3 years now. In my credit report, one credit card is not marked as Satisfied. The default date is correct just no Satisfaction date present. Other cards are marked as Satisfied with the Satisfaction date being the date of discharge. Is it something I should be looking into? I am trying to obtain the mortgage and am not sure if it affects things. Thank you.
Sara (Debt Camel) says
As the article above says, this is incorrect and you can complain and get this corrected.
It may make little difference to your chance of being able to get a mortgage though until the bankruptcy drops off 6 years after it started,
Silvija says
Just wanted to thank you for advice in this article. I followed it and, the status has been changed to Satisfied and that increased my Experian score by 54points. Don’t know if it will increase my chances to get mortgage now, but definitely in the future. Thank you very much.
Silvija says
Hello Sara,
I just noticed they marked it as Satisfied, but there is no satisfaction date on the credit file only an update date which is recent. My mortgage advisor says the credit file shows that I have all the missed payments up to the updated date rather than discharged. Should I contact them again asking to change that? How should I word the request?
Sara (Debt Camel) says
It should have been marked as satisfied or partially satisfied with a date on the date of discahrge of your bankruptcy.
The article above explains how to ask them to correct this.
Sue says
I would like some advice on what to do, I went Bankrupt in oct 19, discharged Oct 20. I’ve only just started to clean up my credit file their where 3 company’s with the wrong details all saying I owed money,going by the advice on here I sent them all my discharge letter and your template, 2 of the company’s have been brilliant and sorted but 1 company has just replied sending me back my letters with their letter saying I still owe and to start paying or get in touch, of course I’ve gone straight to https://ico.org.uk to make a complaint but as they are very busy it could take 3 months before they look at my case, should I contact my OR or wait for ico to get in touch.
Sara (Debt Camel) says
who is the company that has not co-operated?
I am afraid it isn’t part of the OR’s role to help you clean up your credit record.
Sue says
Am I allowed to say PayPal Credit
Sara (Debt Camel) says
They can be tricky to have a conversation with. Have you tried emailing them? ppelce@paypal.co.uk
Sue says
The only email was via PayPal portal who told me to call the collections number which I did with their conversation they said it cannot be changed even with a discharge letter.
Sara (Debt Camel) says
These things are hopeless on the phone. I suggest you email the address I just gave with Complaint as the subject. Use the language from the article above.
Sue says
Thank you Sara for the email for PayPal credit, it worked with no problems after giving them my Discharge letter, they replied and corrected my credit file which I could see they had before replying to my email.
Sara (Debt Camel) says
Good. And thanks for letting me know that odd email address works!
Sue says
Thank you awaiting their reply and will let you know
Jen says
Today I have won my case against Santander with the Ombudsman, they were adamant I was still liable for my mortgage payments following bankruptcy and continued to report so on my credit file, they have admitted in the final ruling they were wrong. It has been a difficult journey that has taken 18 months, dealing with organisations that should help customers but in fact their staff have very little knowledge. I still have a way to go with Santander saying their systems do not allow the updates required but at least I have the ombudsman’s ruling to back me. Thank you Sara for the resources you provide on this page, without them I absolutely would not have won my case
Sara (Debt Camel) says
Well persevered.
It is bizarre that a very large mortgage lender has so little knowledge of the relevant rules.
John says
Hi Sara
The guidance on this subject has been invaluable, so many thanks. Just thought to share my recent experience. In trying to get my credit record corrected. I requested my Cert. of Discharge via email with the Insolvency Service. It arrived the next day and free of charge – I was expecting to pay £70. However, as I applied for my bankruptcy online and not via court there is no fee. https://www.gov.uk/bankruptcy/when-bankruptcy-ends.
My creditors
Barclaycard, MBNA, Creation – email address NOT publicly available. Had to ring customer services to get it. Then had to send Cert. of discharge via email
Halifax – online compliant form completed. Contacted me via telephone the next day, their email address provided to send Cert. of discharge
Barclays Bank – have to take copy of the Discharge Cert. to a branch. Rather disappointing.
Hopefully all will be sorted within 6 weeks.
Thanks
Jon Austin says
Hi could you advise please? I was discharged bankrupt July 2021 where I began an IPO, my debts are still showing as US and defaulted, is this because I have this IPO?
Sara (Debt Camel) says
NO, the debts should be marked as satisfied or partially satisfied with no balance owing. An IPO has nothing to do with this. Follow the advice in the article above about complaining.
Damon says
I’ve just been discharged from BR in June. Just checked my credit report and I have accounts listed as being “in default”. Is this how it’s meant to look or do I need to contact them to change my status? Bit confused as to what it’s all meant to look like now I’m out of BR.
Thank you for this site btw – been a HUGE help through this
Sara (Debt Camel) says
the debts in your bankruptcy (which is everything before you went bankrupt) should be showing as defaulted on or before the date of your bankruptcy. And the debt should after your discharge have been marked as satisfied or partially satisfied in some way, with zero owing.
If any of the debts still have balances showing, you should ask the creditor to correct this. See article above for how.
Mark says
I am now 6 years after my BR date, however Experian are still showing it (it came off Equifax a few days early oddly)… is it something that might take a few days or should it be immediate, i.e on the exact anniversary of the BR (as i thought)…
I’ve patiently been waiting 6 years before i check my options, paying my cards on time every month etc, so slightly frustrated that its still there!
Sara (Debt Camel) says
what Experian report are you looking at?
Alastair says
Hi
Do you happen to have any email contact details for Halifax, Lloyds and Bank of Scotland credit cards?
My 6 year point is in June 2023 and the above mentioned companies (all under the Lloyds umbrella) are still showing as open with default and a balance on all 3 major reference agencies! Lloyds has the correct BR date the other 2 are 4 weeks later! Lloyds isn’t showing on TransUnion or Equifax but BoS and Halifax are… All 3 shown as open but in default on Experian!
Do you have any advice? I’m happy enough to leave them untill they drop off but with Halifax and BoS showing the wrong BR dates by a month it’s a slight pain. Also with them still showing as open with balances will this be an issue or will they drop off 6 years after default date?
Thanks
Sara (Debt Camel) says
see https://debtcamel.co.uk/email-addresses-banks-credit-cards/ for addresses.
the debts will drop off 6 years after the default date even if they still show as open.
Samantha says
Hi, I was made bankrupt in 2006 we lost everything, house, business etc etc. For our children’s safety we went into hiding due to a serious family issue and were advised to change our Surname by Deed Poll in order that a certain family member couldn’t trace us. We did all this via a good solicitor & the police provided us with panic alarms and door safety equipment just to be on safe side. Anyway, after 16 years said family psycho is now dead & we felt it was right to go back to our original family name. All great. However, I wanted to set up my company as a Limited Company and I was rejected. I contacted Companies House they advised I was bankrupt! I then went through a long process of contacting the Insolvency Service w I then had to do a zoom call and provide all my income and expenditure to them He was satisfied that all was good and above board he’d close the file. HOWEVER, since this re surfaced in March this year it’s now showing on my credit file. Does this now mean that despite me being declared bankrupt in 2006 it will now stay on my file for 6 years? I am heartbroken that this will now stop me expanding my wonderful company at my time of life (55) We have just finally got on our feet again now this has pulled the rug from under me. Please could someone advise
Sara (Debt Camel) says
What exactly is showing on your credit record now?
Samantha says
Bankruptcy Order Active.
Sara (Debt Camel) says
Were you aware there was a bankruptcy restriction order in place? Was this disccussed in your recent zoom call?
Samantha says
No idea at all. I knew I’d filed for bankruptcy obviously all those years ago and insolvency told me it was for 1 year. After losing everything going into hiding and being under psychiatric care for the next 10 years I didn’t give it a second thought & I told him all this in the call. He said not to worry it’s all getting closed now. They had written to me asking one question they had and as I isn’t replied they left it all open! Well we’d been evicted by then so I didn’t know. As soon as companies house told me I was bankrupt I immediately dealt with it . But I’m so upset after nearly 17 years it’s still there.
Sara (Debt Camel) says
You need to go back and ask them about your credit record and whether they can correct it.
Samantha says
Oh I didn’t realise they could actually do that! Thank you for your help
Sara (Debt Camel) says
I’m not saying what they *can* do, you just need to ask questions about what has happened and ask if it can be corrected given your situation.
Samantha says
Ok I will contact them for help. Thank you so much.
Lewis says
Hi,
I am about to approach 2 years after declaring bankruptcy (1year after discharge) my score is on the up and I am about to make my final payment into loqbox. I have a total of £2000 across three ‘bad credit’ cards which are all cleared in full monthly.
Firstly I wanted to thank you! and secondly I wanted to ask if there was anything I should be looking to do next or if I should keep things the way they are until the bankruptcy has been wiped? Im hoping to be in a position to apply for a mortgage after the bankruptcy is removed.
Sara (Debt Camel) says
Out of curiosity, how much has your credit score improved over the last year or so?
The £2000 is the credit limit across the three cards? How much are you spending on each a month?
I assume all the debts in your bankruptcy have been defaulted correctly and now have zero balances/
Lewis says
Hey Sara,
Up from 119 to 570 in the last year on ClearScore.
Yes 2000 across the three, I try and keep the usage around 50-60% and will use the credit card instead of my bank card on purpose. Then transferring the amount into a savings account so that I have it ready when the statement is made.
Yes everything that was included in the bankruptcy has been defaulted correctly and show zero balance.
Thanks.
Sara (Debt Camel) says
That’s a good improvement!
There are no hard and fast answers here. But I suggest that you:
– do not take out any more bad credit cards. 4 is not better than 3. (Actually 2 would have been fine!)
– drop your spending on the cards so it is under 30% of the limit each month
– carry on with LOQBOX. If you are saving up for a mortgage deposit, you could use LOQBOX as part of your regular monthly saving then move it at the end of each year to a LISA? See https://www.moneysavingexpert.com/savings/lifetime-isas/ for best LISA savings rates at the moment.
Ike says
Hi
Thanks for this platform. I had a loan and overdraft default. During the process of applying for bankruptcy, I had ccj notice through. Bankruptcy went through and I made my creditor know about being bankrupt. I have since been discharged from bankruptcy for nearly two years. On my credit report, I’ve been discharged from the bankruptcy but ccj is still active. I thought both should indicate discharge instead. Is there anything I can do to change this please? Thanks
Sara (Debt Camel) says
was the date of the CCJ before or after your bankruptcy?
Ike says
The ccj was before
Sara (Debt Camel) says
In that case there is nothing that can be done.
It isn’t possible to mark a CCJ as partially satisfied.
Ike says
Do I need to do anything about it please? I’ve got 2 credits at the moment and gradually building my credit score.
Sara (Debt Camel) says
There is nothing you can do about this. The CCJ will drop off your credit record 6 years after the date of the CCJ, so it will be gone before your bankruptcy ends.
If you have 2 credit builder cards you do not need more. A third one will not help. The best thing for your credit score with these cards is to never run a balance – your score gets the biggest boost from a card that is used every month for something small – less than a third of the card limit – and then repaid in full every month.
IKE says
Hi Sarah, it’s me again. I’m currently in university hoping to qualify as a paramedic soon. Would the bankruptcy and ccj on my credit file affect my application for HCPC when I qualify please?
Sara (Debt Camel) says
Not as far as I know, but are you a member of a union? Or can you talk to one of your tutors? They would be better people to ask.
Alex says
Hi Sara
Firstly, just wanted to say what an invaluable resource Debt Camel has been to me and thank you for all that you do.
I went Bankrupt on 11 November 2022. I had stopped paying the mortgage prior and have not made any further payments since. For further background the property was since repossessed by a Second Charge lender on 29 March 2023.
My mortgage lender Santander has since then continued to report missed payments each month on the account.
I made a Complaint to Santander requesting that my credit file is corrected as the late payments should not be recorded after the date of bankruptcy. They have formally responded stating that they have investigated and ‘the late payments would continue to be reported until the mortgage is redeemed.’
I assume the best course of action would be now to complain to the FOS?
Would I need proof from the OR that the mortgage is included in the bankruptcy? On the application form the mortgage was only included by myself under the 4 Assets section when I listed my home. However in any event, it is my understanding that the Insolvency Act covers Secured as well as Unsecured debts. This was made clear in the Platform Loans Decision from the FOS. So would it not always be included?
Hope the above makes sense. Your thoughts are greatly appreciated!
Many thanks
Alex
Sara (Debt Camel) says
Yes if Santander have rejected your complaint, send this to FOS. And you can quote that Platform FOS decision (link in article above).
Sara (Debt Camel) says
Some news!
After seeing your comments, a reader has sent me the FOS decision on her case, which was against Santander https://www.financial-ombudsman.org.uk/decision/DRN-3504542.pdf
The case is obviously slightly different, but the principle that a mortgage debt was part of the insolvency and that a default should be recorded on the date of bankruptcy should apply to your case.
Alex says
That is extremely helpful, thank you so much to the reader and you Sara.
I am drafting my complaint as we speak and this will be very useful to refer to.
All the best
Alex
Alice says
Hi. I went bankrupt in November 2019 and discharged in November 2020. All my creditors did not report settled on the correct dates and thanks to this article I was able to notice that and get them all corrected (which took a few months). At present my creditors have date of default as November 2019 but my query is is it correct that they should still have D recorded each month until my discharge date. Or should the D only be up to the actual date of bankruptcy? I am applying for a mortgage in November of this year (3 years after Discharge) and I have 3 credit cards and my score is ‘fair’ sitting at 707 with clearscore etc. I just can’t afford to have any more mistakes on my report. Thanks in advance
Sara (Debt Camel) says
my query is is it correct that they should still have D recorded each month until my discharge date.
yes, that is correct.
How large a deposit do you have?
Alice says
That is good news as i am obsessed with getting it right!
I have a decent deposit. why is that relevant Sara? thanks
Sara (Debt Camel) says
Because you will need a very large deposit, not just 10-15%, to have any hope of getting a mortgage at a halfway reasonable interest rate while bankruptcy remains on your credit record.
Do nor borrow from a bad credit lender because a broker tells you you will be able to remortgaged at a good rate rate after 2 years. This is not guaranteed and can go very badly wrong.
In 2010-12 these lenders increased their inter rates when every decent lender was cutting theirs.
Now in 2023 we see people paying 10% and more on a bad credit lenders standard variable rate as they are unable to pass the affordability test for a normal lender.
Alice says
That’s awful for people. I have at least 25% as I have been working really hard and saving. In November this year I will be 3 yrs out of bankruptcy and my mortgage advisor has been in touch with Nationwide and they have said their interest rate is same as every one else. Praying this is still the case in November and that my credit report is up to the standard needed. It has been so much worry if it goes through ok.
Thanks for replying and explaining.
Sara (Debt Camel) says
Nationwide will be absolutely fine. Hope this goes well for you.
Alice says
Amazing. Fingers crossed 🤞
Do you know of any agency or business etc tgat look through a credit report to help me check for any faults before I apply for my mortgage. I have done the best I possibly can but worried I may have missed something
Thanks
Sara (Debt Camel) says
Your broker is the best person to do this. Have you supplied credit reports from all 3 credit reference agencies?
Alice says
Yes. However said there show be no defaults if i have declared bankruptcy and I had to correct him
I went to a few and the didn’t seem to know what it should look like when it came to bankruptcy
Thanks for your sort replies 😊
Anth says
Hi there, I was discharged from BR 28/02/21, on my Credit Karma account there are 7 Public records or defaults reported. I’m confused as to wether these should still be in default or should the be settled now ? I opened a Loqbox account and Capital One credit card which is paid monthly, my credit score at the moment with CK is 540 out of 710. Should the 7 defaulted accounts now be zero from two years ago ? And will this effect my credit rating ?
I had to liquidate my business and filed personal bankruptcy on my personal accounts which my wife was on this has been added to her credit file for the bank and credit card accounts, these were my accounts which I added he to, would it be possible for me to get her removed from both accounts and if so how would I go about removing her.
Best Regards…..
Sara (Debt Camel) says
You need to look at the details of your credit records. And not just TransUnion which Credit Karma reports on, also get report from Experian and Equifax, see https://debtcamel.co.uk/best-way-to-check-credit-score/
Should the 7 defaulted accounts now be zero from two years ago ?
yes, as the article above explains, the debts from before your bankruptcy should have a default date of the start of your bankruptcy and should have been marked as satisfied or partially satisfied with a zero balance when you were discharged.
And will this effect my credit rating ?
getting the debts marked as a zero balance wont improve your credit score but may make lenders more prepared to lend to you.
What joint accounts did you have with your wife? So far as I am aware, it isn’t possible to have a join credit card account.
Anth says
Hi Sara and thank you for your quick reply.
I will use your letter template and contact the relevant parties and ask for them to change the status to satisfied zero balance.
I added my wife to my Halifax current account and also as a second card holder to my Halifax credit card.
Thanks again for your help it’s much appreciated.
Kind Regards
Anth.
Sara (Debt Camel) says
The second Halifax card will not count as a link between you. If you check her credit report it should not even show there.
So the joint bank account is still showing on her credit record with the overdraft? is she using this account? is any money being paid into it? what are the rest of her finances like?
Anth says
Hi Sara,
Yes the joint bank account is still showing on her record with the overdraft, neither of us have used that account since I went BR in July 2020 nothing has been paid into that account either.
That is the only default on her credit record I checked the Halifax credit card and my wife isn’t on that for default it’s only myself.
Kind Regards
Anth…
Sara (Debt Camel) says
Are charges being added? What is the balance?
Anth says
Hi Sara,
There are no charges being added, the balance is the same as it was when I declared myself bankrupt £4261.00.
Kind Regards
Anth…
Sara (Debt Camel) says
ok, well I am afraid your wife is legally liable for this debt. And it is highly unlikely that Halifiax will agree to remove her name from this account.
Anthony says
Hi Sara,
I had a Vanquis credit card, which had a balance but was up-to-date with payments when I was declared bankrupt in Oct 2020. Vanquis have recorded this as a default on the date of my bankruptcy, which I seems like the right procedure, but I wanted to check?
Warm regards,
Anthony
Sara (Debt Camel) says
That is correct. It should also have been marked as partially satisfied with a balance of zero on the date of your discharge
Maria says
I went bankrupt in April 2018 and on the same day had a CCJ filed against me. I have thankfully been able to have this set aside by a judge so it no longer shows on my credit report. But, my score has not changed. Is this right? Citizens Advice thought that my score would improve once the CCJ was removed but it hasn’t and I am going round in circles trying to get Experian to help me. My last email from Experian says they cannot find a CCJ on my file, which is good because it has been removed and the Registry Trust has agreed it was a mistake and should never have been there in the first place, but Experian should know about it surely?
Sara (Debt Camel) says
How many other defaulted debts show n your credit record?
Maria says
There are 4 which were also included in the bankruptsy. I shows as partially settled, the other 3 show as default with zero balances
Sara (Debt Camel) says
Well with bankruptcy and 3 defaults showing, your credit score will never be good. Deafults affect your score more than a CCJ does, see https://debtcamel.co.uk/credit-score-change/
Experian only knows what is on the current database. If the CCJ has been removed, then they can’t see it. Which is what you want.
Alice says
Hi Maria.
I too went bankrupt a year after yourself in November 2019. I have 13 defaults recorded on my report on the date of bankruptcy and all partially settled and zero. It took me months to get this all corrected. Anyhow, my score at present with Experian is 740. I would imagine yours should be similar. If not I would say something isn’t right and would need amended. Hope this helps.
Maria says
Hi Alice, thanku for your advice. My score was 601 then the CCJ came off and it went down to 509 which I can’t understand.
They are all due to come off in April which I accept but it’s holding me back on a job application. My credit has been perfect since 2018 and I was confused how a CCJ coming off wouldn’t raise the score let alone drop it by that much
Sara (Debt Camel) says
removing a CCJ should not cause a credit score to fall – what else has changed between your two reports?
what sort of job are you applying for that your credit score matters?
Maria says
Nothing else has changed except the CCJ.
Many Civil Service jobs are an issue if your credit isn’t good or you or if you don’t have a good enough reason for the debt, as it shows you cannot manage your money which in turn could show you are open to bribery and corruption. They have accepted the reasons for bankruptcy, but the CCJ isn’t ok and I had to prove it shouldn’t have been there. I have done this and have apology letters to explain what went wrong, as well as the letter from the court for setting it aside, I just didn’t expect my score to go down
Sara (Debt Camel) says
It shouldn’t have. Some old debt where there were no problems may have dropped off. Have you done a line by line comparison with the previous report?
Maria says
Yes I’ve check everything and Friday got through to he dispute resolution at Experian and asked them to look into it
Sara (Debt Camel) says
Let us know what they say.
Jon says
Hi Sara,
It seems like you are the woman in the know when it comes to all things BR, so I hope you can also help me.
Poor financial education and life choices landed me BR at 26 in 2018. Since then I have educated myself better and I am trying to be more responsible. I was checking my report with Equifax and the BR order is there (court date 2018, satisfied 2021) but there is also a CCJ there separately that was included in the BR (I checked the list or creditors) from the same year 2018. It has the court date but the satisfied date says N/A. I recently got a letter from the creditor saying that I still owed the money. What shall I do?
As you can imagine i am eager to have both these issues erased from my file – am I right in believing that it is 6 years from the court date, not the satisfied date?
My score at the moment is extremely low, sitting at 196 an I’m guessing this is largely to do with the two stains i have on my record. What score can i expect to have a few months after they have been removed from my file?
Thank you in advance for you help.
Sara (Debt Camel) says
Was the CCJ court date before or after your bankruptcy? Does it relate to a debt that was included in your bankruptcy?
Jon says
The CCJ court date was 18.12.18 and BR was 21.08.2018. the debt was definitely included in the BR I have double-checked again.
Sara (Debt Camel) says
Ok so you have two different problems here
First you re being chased for this CCJ debt – that should not be happening. Go back to the creditor with the details of your bankruptcy and point out the debt wA included in that.
Second your credit record. So the bankruptcy will drop off your credit record in august next year. Nd the CCJ will go in December next year. The CCJ should never have happened – you could have got the court claim dismissed if you had defended it. Now you have the choice of trying to get the CCJ set side, which may cost you money for the set side application, or living with it on your credit record for another few months next year. Talk to National Debtline on 0808 808 4000 about how to poly for a set side nd the fee nd whether you would be able to get the fee waived if you are in a low income.
Jon says
I spoke with the creditors last week and they confirmed that the debt was included in the BR and that I was receiving the letters in “error”.
I will take your advice and try and get it set aside. As I mentioned previously I would like to begin preparing to establish a good credit rating once my BR is cleared from my file. What score roughly can I expect once I have been discharged from my bankruptcy? Also, is there a way to check if there are any other outstanding debts in my name? Nothing else appears on my report but i just want to make sure!
Thank you again
Sara (Debt Camel) says
It’s up to you if paying the court fee is really worth it for just 4 months.
Do you have any “positive marks” now on your credit record? If not, this is the time to start getting some. Can you afford to save £20 a month every month for the next year? If you can, then sign up today to LOQBOX, the free version not the paid for one: https://www.loqbox.com/en-gb/
Have you checked credit reports covering all three credit reference agencies?
Jon says
I will try to see if I can get the fee waived, depending on how much the fee is.
I have heard about Loqbox and I will sign up today.
I have only checked my report from Equifax. Should I also check out Transunion and Experian?
Also, in answer to your question about positive marks, I do not see any on my file!
Sara (Debt Camel) says
Yes, check Experian from MSE Credit Club and TransUnion for Credit Karma
LOQBOX will get the first positive marks added, won’t make much difference, but a big difference when the defaulted debts go.
Maria Moulton says
Exactly the same has happened to me very recently. CCJ which was included in the BR was showing separately on my credit file.
I contacted the Registry Trust who removed the CCJ, it took them about 3 weeks from the first point of contact to remove it.
Sara (Debt Camel) says
Interesting, I didn’t know they did this
Maria Moulton says
Registry Trust was also very helpful and phoned a few times to keep me updated.
Jon says
I just spoke with the Registry Trust and they said that i need to contact the court in order to get it resolved.
Maria Moulton says
The order in the way I had to do it was, I contacted the creditor in writing, contacted the court from where the CCJ was issued, waited for a response from both of them, then sent both responses to the Registry Trust.
Sara (Debt Camel) says
yes, I have checked with Registry Trust and they tell me:
“It appears that although [Maria’s] initial query did relate to a judgment that should have been removed due to bankruptcy, it transpired that this was something that the court had already started the process of removing for her. Unfortunately, the court hadn’t updated its system meaning that we weren’t sent details of the cancellation, so our team raised a query with the court on Maria’s behalf which result in the court manually sending the cancellation to us.
Although we did confirm the above back to Maria, it appears that she is giving us the credit of having the judgment removed in her comment, when in actual fact all we did was chase the court and expedite their amendment.”
Did you send a set aside request to the court?
Maria Moulton says
Hi Sara,
Thanks for getting the correct info – yes I did send a set aside request a long time before I contacted Registry Trust – it was obviously already in process and I didn’t realise what the hold-up was.
Alice says
Has anyone managed to get a mortgage after 3 years of bankruptcy discharge?
I wonder if my report will change for the better after the 3 years…. I will find out in 2 months as applying for a mortgage then.
Nerves are wrecked 🤦🏼♀️
Sara (Debt Camel) says
No, your credit report does not improve after 3 years. Are you intending to apply through a broker?
Alice says
That’s disappointing
Yes I am. Apparently nationwide may accept
Sara (Debt Camel) says
ok, then you have to trust your broker.
Alice says
Thank you.
I do, he isn’t certain it will go through due to the bankruptcy but we can only try in hope. I will reply in here if it does to help give others hope and peace of mind. Thanks for replying
Rayyan says
Hi,
I declared bankruptcy September 2022 and was discharged 1 year later, with no payments to be made after discharge.
However I still have accounts showing as “outstanding or defaults”.
What should I do in this case? Should they still be appearing as defaults or settled?
Sara (Debt Camel) says
So you have only recently been discharged. The article above says what should happen but it’s sensible to give your creditors 2 or 3 months to do this. After that, complain to them!
Josh says
Your website has been so helpful throughout my bankruptcy – thanks!
My six years is up July 2024 and I have used all the templates (it took a long time) to get creditors to update my file accordingly.
The lack of knowledge creditors have in this area is shocking.
I am still getting letters from my main bank, in regard to an unsecured personal loan, sending me the balance etc but not asking for payment. Is this allowed? Everything else has ceased and it took me over two years to get them to mark my credit card/overdraft as partially satisfied and on the correct date (they had been reporting default every month for years). I can’t seem to get them to close down this loan account, even after official complaints.
Sara (Debt Camel) says
is there a default date on this bank loan?
Josh says
It looks like its at £0 from July 2019, I went BR in July 2018. They are the only lender who have done this as 2019 across all 3 products held with them though – with the account marked default monthly from July 2018 to July 2019. This took me nearly two years to get actioned it was ridiculous.
Sara (Debt Camel) says
If there was a default date of July 2018 and it has shown as a zero balance from July 2019, that sounds correct. And it will drop of your credit record in July this year.
Jane d says
Does it automatically drop off my six years is up in March and Experian said I might have to ask for removal of entries.
Sara (Debt Camel) says
the bankruptcy should drop off, the debts in the bankruptcy will if the default date was on or before the date of you went bankrupt.
Alice says
Would you mind replying if/when they drop off as my defaults will hopefully drop off next year on my bankruptcy date. It would be good to hear if it does for peace of mind. Good luck 🤞
Jane D says
Yes Alice happy to do so.
Jane D says
Hi Alice
On a good note my file started to have records showing as removed three days earlier on Equifax but not on Experian.
The day of discharge yes my creditors defaults have automatically gone.
I’m not surprised to say my credit score has not improved and personally I think this should have automatically.
Also Experian despite telling me the bankruptcy note would automatically go off my file it has
Not I’m not surprised as Experian would not put my discharge on straight away.
On Equifax my bankruptcy showed as removed but no change in score.
There needs to be a call for these companies to manage and monitor better.
I Feel a little deflated as no automatic score change after six long years and the fact yet again Experian need a prod. On the plus it’s great to see my defaults gone.
Alice says
oh no, I am so sorry you are still struggling with this Jane. I expected the bankruptcy to automatically dropp off after 6 years I would be very disappointed and deflated too. I hope it will drop off soon!
I paid for the subscription for Experian for one month not long ago and there is a new section on it whereby they predict your score in 3 months, six month, one year, 2 years and they predicted on mine that in 2 yrs my score will jump from 689 to 970, which is when my bankruptcy should drop off.
on a good note, I am 3 yrs. after discharge and just got accepted for a mortgage with Nationwide. It was a struggle though as I got declined multiple times online, so I contacted them by phone and practically begged them to send my info to the underwriters and after a long process of sending documents etc I got my mortgage offer and I move in to my new home in 2 months. Needles to say I was super happy that one nice person in Nationwide listened to my cry and helped me with the process as I had no joy at all with 3 mortgage brokers!
I really hope that you get sorted soon and you can move on with your life and if you need any help or any one out there does I will help guide you through my experiences. best of luck!
Jane D says
Ohhh Alice I am super super pleased for you and wish you much joy in the new home.
I do think and question why in other countries the default is removed after three years altogether. I do find it misleading when though we have been discharged
we are limited for so long? And given hope post discharge when actually there isn’t any for the first year.
I’ll prod Experian and see what happens we also are looking for a new home and I’d just like a clean slate to start from.
Have a great wknd Alice.
Josh says
Got a mortgage 3 yrs after discharged from Bankruptcy? Wow I might give it try
Sara (Debt Camel) says
go through a good broker. Dont just apply at random to a highstreet bank
Josh says
Hi you lovely people
Does anyone have Barclays email that I can send my complaint to please?
Sara (Debt Camel) says
see https://debtcamel.co.uk/email-addresses-banks-credit-cards/
Josh says
So I got a callback from Barclays complaint centre stating my complaint has been forwarded to the appropriate people. However, it’s been months nothing has been done about it.
Do I sent another to complaint?
Thanks
Josh
Sara (Debt Camel) says
no don’t start a new complaint. Phone them up again and ask why you have not received a response. Say if your complaint has to go to the finacial Ombudsman, you will be asking for additional compensation for Barclays poor credit handling.
PS do not let this get to 6 months… before then send your complaint to the ombudsman and say Barclays haven’t replied.
Josh says
Update
I had a chat with Barclays this week and they apologised for not rectifying it and have even compensated me with £50
Jay says
Hi, i was discharged from bankruptcy in 06/2021 and have just realised most of my credit cards are still showing as having a balance and being in default on my reports, which I believe should have been marked as settled and the balance zeroed. Would I be able to use either option 1 or 3 to contact the banks? I believe this is preventing me from opening regular bank accounts after all this time.
Thanks
Sara (Debt Camel) says
You send (1) if the default date on a debt is ont on or before the date of your bankruptcy.
You send (3) if the creditor has not market the debt as satisfied or partially satisfied with a balance of zero. They do not have to remove the default.
Jay says
Thanks for that, 3 would seem appropriate then. I understand that the default during bankruptcy is normal but should they not remove the monthly defaults that are after my discharge date?
Also is it appropriate to use the complaints contact emails for this request?
Sara (Debt Camel) says
when the debt is marked as settled, the monthly defaults will stop.
yes you are making a complaint that they have not correctly updated your credit record
Jay says
Thanks so much for the advice, I’m not financially savvy at all, can feel so daunting.
Sara (Debt Camel) says
you can get this sorted. one step at a time.
Jay says
Hi Sara,
Most of my banks have replied to complaints saying they never recieved discharge letters so they will correct reports but can’t take responsibility which is understandable. One however admitted to receiving it and offering 100 pound compensation. Should I simply accept this amount or negotiate? I’ve no idea what an appropriate amount in this situation.
Thanks
Sara (Debt Camel) says
I suggest you accept it
Jane says
My only issue with Loqbox is read it on how you access the money after twelve months as it limits the bank accounts and I found there is a fee for your own account to transfer the saved funds into and be aware the cancellation process is not as clear as it should be and I do wonder why no one has told them to put it in the front page and make it clear. Also contacting them is in effective I want a phone number not support email. The cancellation should be quick not login drop menu click here here and here and then click here……wow
I only wish the six years was reduced to three as there is hardly any change in the credit rating number to start with after bankruptcy. I also wonder if the way the reporting is done should be more intuitive quick to drop slow to raise.
I’m locked in a back n forth still with Equifax who say no data for my electoral roll yet all others are fine with it 🙄
Sara (Debt Camel) says
I will pass on the message about the cancellation to LOQBOX – you are right it should be easy.
You can always get the money back into a new account for free and then move it out – they are all easy access. To be fair this is the onlt income LOQBOX have – you can’t expect them to provide this service for free.
how long ago was your bankruptcy?
Farrokh says
Hi,
The six years of my bankruptcy will end next week. Will it affect my credit score as much as when I was discharged? I have not been able to get a full current account or get car insurance from many companies. I’m hoping this will change.
thank you
Sara (Debt Camel) says
This should improve with the bankruptcy marker being removed. The score matters less than the removal of this marker.
Are ll the debts in your bankruptcy correctly marked with defaults on or before the date of your bankruptcy? If they are, then they should ll disappear too.
Alex says
Hi Sara.
Thank you very much for all of the information provided on this website.
I have a question about the lenders. How will they find out about the discharge from bankruptcy? Will the OR let them know, or how?
Sara (Debt Camel) says
The Insolvency Service will notify the CRAs who will add your discharge to the Public Record section of your credit reports. Creditors can see it there.
Have you been discharged? When?
Alex says
Thank you very much for the information. I suppose I will be discharged on 18—May 2024, so like three more weeks. I hope to be discharged because I have not heard anything from the OR yet and am not paying any IPA. Based on your experience, are the chances for discharge good? You are doing a brilliant job of helping people in these difficult times! Thanks for everything
Sara (Debt Camel) says
More than 99% of people are discharged automatically even if they are paying an IPA.
Alice says
Hi there.
Sorry for jumping in. The OR didn’t notify my CRAs I had to send them all my letter of discharge. Good luck.
I says
Hello.
I have 30k debt. I am thinking about going bankrupt.
How long and how much would I have to pay off each month if I were to do this?
I have no house, no car, no other dependents apart from me
Sara (Debt Camel) says
That depends on how much “spare income” you have left each month after paying the household bills and everyday living expenses
I says
Just over £100 a month
I earn 28k a year. I’ve been struggling with debt for years
Sara (Debt Camel) says
ok, in working out that £100, how much a month are you allowing for groceries (including toiletries and cleaning stuff)? clothes? transport? xmas and other gifts? dentist/optician/prescriptions? entertainment? haricuts? any insurances? does the amount you have allowed for energy allow you to keep the place properly warm in winter?
Jon says
I wrote to you previously and your advice was great – I signed up to Loqbox last year in preparation for my bankruptcy mark leaving my credit file next month!
My credit file reads that my bankruptcy court date was 21-08-2018 and the date satisfied was 06-02-2021 with a value of 0. Separately I have a CCJ (that was included in the bankruptcy) on my file with a court date of 18-12-2018 and the satisfied date NA with a value of £9,421. I would like to write to have this removed from my file so I can be clear of this also next month. Is it an issue that there is a value there? Do I need to contact someone about this?)
Sara (Debt Camel) says
Is it correct you went bankrupt on 21/8/18?
What date were you discharged?
You say the CCJ was included in your bankruptcy but the date is after the bankruptcy date – do you mean it relates to a debt that was included in your bankruptcy?
Jon says
Yes, bankrupt on 21-08-2018 and discharged 06-02-2021.
Yes the debt from the CCJ was included in the bankruptcy. It was a debt from Santander. I have read your article above where you advise on getting in contact when there appear to be discrepancies or mistakes. Would that apply in my instance?
Sara (Debt Camel) says
It is a shame you did not defend the CCJ at the time. At this point you would have to apply to the court to have it set it aside, which would cost you £225 (unless you are on a very low income and would qualify for fee remission). You should also have applied for a CCJ set aside “promptly”, not waited years.
I suggest you talk to National Debtline on 0808 808 4000 about a set aside, how to apply for it and, crucially, how long it would take. There is zero chance of this happening next month. It could well take many months, in which case it’s doubtful whether this is worth bothering with as it would drop off your credit record anyway In December.
Jon says
Thank you.
I will make some calls and let you know how I get on.
I have also just noticed on my file that there is a LOQBOX payment showing as an arrear (MAY) all other payments were made on time before that and since that. Will the negatively impact my score? I also use there charge card and all payments here are up to date and paid on time.
Do you recommend any first steps after my bankruptcy has fallen off my credit file in terms of further rehabilitation?
Sara (Debt Camel) says
Yes the LOQBOX arrear will harm your credit score for the next 6 years.
Do you urgently need to get your score improved as just waving until the end of the year will sort out the CCJ.
Jon says
Ok.
No its not an urgent matter but as you can imagine that I have had this looming over my head for quite some time and I would like to be rid of it. I would like to equip myself with the best tools in order to stay on top of my finances whilst having positive marks on my file.
JANE says
Hi Sara,
I declared myself bankrupt over two years ago, 14th February 2022. It was very straightforward, no CCJ’s or payment plans. I was released 12 months later.
I am only just showing zero outstanding debt on Experian, which is great. However I am still showing outstanding debt from two credit card companies (both were included in the bankruptcy) on Equifax and TransUnion. Will they drop off at some stage? How do I go about getting this incorrect information removed if not?
Thanks in advance.
Sara (Debt Camel) says
Also check your statutory report from Experian – see https://www.experian.co.uk/consumer/statutory-report.html. This is free, you don’t need a paid for one.
The debts will drop off 6 years after the default date on the debt, which should be on or before the start of your bankruptcy.
If the date is later or there is no default date on the credit record, complain and ask for it to be corrected, as the article above says.
Also complain that the debt balance should be set to zero and the debt should be marker as satsfied or partially satisfied in some way.
Giles Powell says
Hi Sara,
You above advice is most useful. Thank you.
May I ask how I get the public information on my credit file corrected to show I have been discharged? Who do I write to? I have a certificate of discharge, showing a discharge on 1 May 2021, but Transunion who I have provided the certificate to asked (for almost 3 months) to correct to information have not done so. Is there someone official I should email or write to?
Kind Regards
Giles
Sara (Debt Camel) says
Is the Experian & Equifax reporting correct?
Giles says
Thanks Sara,
None are showing it correctly. I written to them (all) and to the Insolvency Service and the Official Receiver asking them to correct the Insolvency Register, which does not show the discharge. The learning points for me and for all are:
1. Apply for a Certificate of Discharge as soon as your are discharged – because it is not provided automatically;
2. As soon as you have the Certificate of Discharge write (enclosing a copy of the Certificate ) to:-
A) the Insolvency Service and the Official Receiver asking the the Insolvency Register is amended to reflect the discharge – The Court will either not do so automatically or is delayed in doings so – that includes the High Court, Chancery Division, Bankruptcy Court. I suspect that the regional district registries and County Courts are slower but I have no experience of that.
B) the credit agencies – asking that they add the discharge;
C) the creditors (Credit Cards Banks etc) asking that they correct the default dates and settlement dates and balances.
The sooner you do the above the sooner your credit file will reflect the above. As I have discovered, it is largely for the Bankrupt to seek teh corrections etc.
Sara (Debt Camel) says
You are still showing on the Insolvency Register as undischarged? That is very rare and the likely cause of all the other problems.
I don’t know what your references to courts and regional district registries refer to.
Giles says
Thanks Sara,
I agree that is likely, yes I am showing as undischarged, albeit it should show as discharged from 1 May 2021. I have asked for that to be corrected. It is likely an administrative error, because my discharge was delayed or suspended by 3 months while I negotiated an income payments order. The register shows that the suspension was lifted but not the actual discharge. I suspect that the Court did not communicate the discharge to the IS or OR.
The courts are those that have Bankruptcy jurisdiction: the High Court in London, the High Court district registries in Birmingham Bristol Manchester and the County Courts. I had not realised that while discharge is automatic you do not get a certificate unless you apply for one.
Do you have any experience of what sort of impact the discharge (or it being recorded) and the correction of the default dates (to the bankruptcy date 27 January 2020) and the balances to settled and zero might have on credit rating? One default date which I have asked to be corrected remains at present as 12 August 2020 and the unsettled balances show I am using (accordingly to the credit reports / agencies) 61% of my credit limit.
Many thanks
Sara (Debt Camel) says
You can check the individual insolvency register – https://www.insolvencydirect.bis.gov.uk/eiir/
If your name is on there as undischarged, complain to your Official Receiver and they will get this sorted out.
If your name isn’t on there, it is because you were discharged more than 3 months ago.
A court “having bankruptcy jurisdiction” is not relevant for your credit record after you are discuss far as I know.
Settling a balance has no impact on your credit score. But it will help you in further applications for credit.
Josh says
Hey Sara,
My bankruptcy was July 2018, discharged July 2019 – all accounts on my file have disappeared apart from Volkswagen Finance. They have been reporting missed payments up until nearly 24 months after the bankruptcy, haven’t ever marked the account as defaulted in 2018 and I have been to battle with them numerous times. Their final letter response states:
The case handler was able to accept the discharge certificate and amend your credit file to remove any late payment markers following the date of discharge (16 July 2019), as per the Discharge Certificate.
Credit files are stating account is reported until 2026 – surely they cannot mark missed payments after a default date as this extends the time my score will not heal. I am getting nowhere with them, the ICO office isn’t responding and I just don’t know what else to do.
Sara (Debt Camel) says
Have you asked them to add a default date on or before the date of your bankruptcy?
Josh says
Indeed – I used the template from here. Did it in 2020, 2022 and 2023 – they seem to think they can just have missed payments instead which I believe they cannot? No payments were missed prior to the bankruptcy order being made. Just sent a complaint to the Ombudsman also but as its past six months since their final response letter it may fall flat. Also re-opened my ICO case against them to see if that helps but otherwise, I guess its just getting a solicitor?
Sara (Debt Camel) says
yes you should have sent FOS the complaint within 6 months. FOS are more reliable than the ICOwhich is why I recommend going to them for consumer credit debts.